Sale of Trade Credit Insurance in Europe through Reinsurance with Mitsui Sumitomo

Nippon Export and Investment Insurance (NEXI, Chairman & CEO: Kazuhiko Bando) has entered into a reinsurance agreement as of May 1, 2016 with Mitsui Sumitomo Insurance Company (Europe) Limited (CEO: Robin Adam) in London, UK to start providing trade credit insurance for Japanese companies operating in the UK.

Under the reinsurance contract between NEXI and Mitsui Sumitomo Insurance Company (Europe) Limited, a UK subsidiary of Mitsui Sumitomo Insurance Company, Limited (President, Chief Executive Officer: Noriyuki Hara), Mitsui Sumitomo Insurance Company (Europe) underwrites trade credit insurance as a primary insurer and NEXI underwrites reinsurance.

Through this reinsurance program, NEXI’s trade credit insurance is already available in Singapore, Hong Kong and Thailand. The partnership with the UK insurer will enable NEXI to meet the insurance needs of Japanese companies operating in the UK. NEXI will actively support Japanese businesses operating overseas by providing its stable underwriting capacity based on the reinsurance program.

1. About the insurance product

1. (1) Contracts to be insured
   Export contracts, intermediary trade contacts, and UK domestic sales contracts
2. (2) Maximum liability
   Maximum Liability (claims payment limit) is determined based on each buyer at the time of insurance contract.
3. (3) Covered risks
   ”Bankruptcy” and “Default”
4. (4) Indemnity ratio
   90%
5. (5) Policy period
   One year
6. (6) Underwriting type
   Single Buyer Type: Covering risks associated with a transaction(s) with a single buyer Multi-buyer Type: Covering risks associated with transactions with multiple buyers

2. Reinsurance partner (primary insurer)

Mitsui Sumitomo Insurance Company (Europe) Limited (London, UK)

(Note)
(Source: MOFA, Japan：http://www.mofa.go.jp/mofaj/area/uk/data.html )
According to the data as of 2013, there are about 1,000 Japanese companies operating in the UK, which is the second largest number in Europe after Germany. Employees working at Japanese companies in the UK are about 160 thousand, accounting for about 30 percent of all the workers employed by Japanese companies in the EU. Japanese companies in the UK are employing more workers than Japanese companies in any other European country.