Zurich, U.S. announced from its Schaumburg, Ill. headquarters that its unit that provides insurance solutions for emerging markets risks has signed an agreement with Atradius Dutch State Business – acting on behalf of the Dutch government as export credit insurer – for the reinsurance of export credits for Indonesia.
Zurich said it “will reinsure $99 million (€77 million) worth of risks on Indonesia buyers, with the option to increase this amount to $141 million (€110 million) before the end of 2006.”
The bulletin also notes that Atradius hit its exposure limit for Indonesia earlier this year “and was unable to insure new credits. With this agreement and others in place, there will be room for insurance export credits for Indonesia amounting to almost $320 million (€250 million).”
Daniel Riordan, executive vice president and managing director of Zurich’s emerging markets unit, commented: “This agreement is an example of how Zurich’s expertise and financial strength can help export credit agencies like Atradius meet their objectives of promoting exports and increasing trade flows by providing reinsurance or primary coverage on new and/or existing transactions. In this instance, Zurich’s ability to reinsure an existing book of business for Atradius will enable it to continue supporting Dutch exports to Indonesia. We are very pleased to have played such an important role in helping an important customer achieve its goals.”
Johan Schrijver, director of Atradius Dutch State Business, added: “This agreement enables us to improve the service we provide to Dutch exporters, as there is a huge demand for cover on Indonesia. We have applied a number of other portfolio management solutions as well to free up capacity for new business. I am confident that these efforts will help us meet our customers’ needs.”
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