Credit & Political Risks

Businesses, banks and commercial government entities are increasingly exposed to credit and political risks across emerging economies and established markets.

Aspen’s Credit and Political Risks team strives to provide clients the best protection for their risks. We have the capacity and specialist expertise to help our clients manage the specific credit and political risks faced by their businesses, and are able to deliver cost and capital effective insurance solutions.

We provide tailored cover across our suite of products for a range of clients including corporates, financial institutions, multilaterals, developmental institutions and commercial government entities.

Coverage types provided:

  • Political Risk Insurance: insures against government expropriation of overseas investments and other forms of political risk the business may face.
  • Contract Frustration Insurance: insures against default and non-performance by state-owned entities and sovereigns.
  • Credit Risk Insurance: insures against non-payment by individual companies and financial institutions, including loans for export finance and trade contracts, project finance and general corporate purposes.
  • Counterparty risk insurance: for financial institutions, we also offer credit protection against non-payment of termination amounts due under ISDAs, including project finance swaps.

The team applies the local insights associated with our presence across Aspen’s Bermuda, London and Singapore offices, and can provide coverage of up to US$100 million per risk on our Aspen Insurance UK Limited (AIUK) and Aspen Bermuda Ltd (ABL) papers, and up to US$60 million per risk on our Lloyd’s Syndicate papers (including Lloyd’s Brussels Syndicate 5383 for EU clients).

In order to match the tenor of our clients’ risk exposures we have the ability to provide coverage over a range of periods. For credit risk we can support up to 8 years (6 years for counterparty risk), for contract frustration and political risk our capabilities extend up to 10 years. We also have the ability to write transactions up to 15 years for project finance risks as well as political risk and contract frustration when providing coverage for a multilateral or development agency.

Aspen prides itself in being a lead insurer within the Credit and Political Risk market, with the team having over 190 years of combined experience in this specialist field. This provides us with the technical knowledge and experience to exhibit thoughtful underwriting and address a range of financial and political risk insurance needs. We also recognize the need for innovative solutions in order to respond to market trends and the evolving needs of our clients. Aspen is able to provide bespoke covers and policies at clients’ request.

Aspen’s Credit and Political Risk team is a member of both the Financial Institution and the Construction vertical industry groups within Aspen, through which we aim to provide our clients with innovative solutions across the full suite of product offerings.

Our expertise in these areas of risk extend into the claims management arena, where our Credit and Political Risks claims specialists work in close proximity to our underwriters to deliver a prompt and efficient service to our clients.  Aspen firmly believes that a smooth claims process is integral to the success of our business, and we work with clients to ensure valid claims are paid in a timely manner.

Carolyn Thomas
Carolyn Thomas

Global Head of Credit and Political Risks

What can we do?

Capacity – Max. line size per risk (USD)

 

AIUK

 

ABL

Syndicate 4711

Syndicate 5383

Political Risk

$100m

$60m $60m

$60m

Contract Frustration (‘CF’)

$100m

$60m $60m

$60m

Credit Risk (‘CR’)

$100m

$60m $60m

$60m

Project Finance

$100m

$60m $60m

$60m

Counterparty Credit Risk

$50m

$50m

Tenor – Years

 

AIUK

 

ABL

Syndicate 4711 Syndicate 5383
Political Risk 15 15 15 15
Contract Frustration (‘CF’) 10/15* 10/15* 10/15* 10/15*
Credit Risk (‘CR’) 8 8 8 8
Project Finance 15 15 15 15
Counterparty Credit Risk 6 6

* up to 15 years where the Insured is a multilateral or development agency