Marsh has launched the Aircraft Finance Insurance Consortium (AFIC), a non-payment insurance product designed for banks and capital market investors that are funding new aircraft purchases from Boeing.
Available exclusively through Marsh, AFIC provides an alternative aircraft finance insurance product for new aircraft deliveries and is underwritten by four leading global insurance companies: Allianz, AXIS Capital, Sompo International (formerly Endurance), and Fidelis, said Marsh in a statement.
The AFIC structure has already been used by a major international airline to support its financing of new Boeing 747 and 787 aircraft, the broker added.
“AFIC can assist airlines globally in obtaining more efficient financing by utilizing insurance to protect the lender’s exposure to default for the duration of the loan,” Marsh explained, noting that the terms of this product can be tailored according to the individual purchase agreements made between Boeing, the airline and its financiers.
“We believe that AFIC is a significant development in airline financing globally and will contribute to the growth and diversification of aircraft finance,” said Bruce Fine, global leader of AFIC for Marsh.
“AFIC offers Boeing customers a wider range of financing options to facilitate the purchase of newer, more efficient aircraft to enhance their fleets, and lenders will be able to conduct new transactions with greater confidence,” he added.
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