Ex-Im Bank reinsurance for private sector
Private-sector insurers that provide short-term export-credit insurance covering foreign receivables to U.S. exporters are now eligible for reinsurance from the U.S. Export-Import Bank.
Atradius Trade Credit Insurance Inc. became the first insurer to sign a reinsurance contract with Ex-Im Bank.
The new product primarily will benefit U.S. small-business exporters that have had a more difficult time obtaining short-term export credit since the 2008-2009 financial crisis. Ex-Im Bank’s reinsurance mitigates risks for private insurers and enables them to expand their underwriting capacity for these credits.
“Small businesses are particularly dependent upon short-term insurance to export with confidence. Ex-Im Bank’s new product will enable insurers to continue providing coverage and help more U.S. small and mid-sized companies export to more countries and create more jobs in America,” said Ex-Im Bank Chairman and President Fred P. Hochberg, in a statement.
Ex-Im Bank’s reinsurance will allow participating insurers to originate and underwrite transactions that otherwise would be outside of their portfolios due to their credit-limit caps on foreign countries and/or buyers perceived to be of higher risk, the bank said.
Ex-Im Bank reinsurance for private sector
