Political Risk - Foreign Direct Investment
Specialty
Our political risk insurance helps businesses to protect their overseas investments in situations such as political violence or confiscation of assets. We cover risks from business disruption to outright loss of the overseas business – and a wide range of investments including new and existing projects, bank loans and leased assets.

Product details

Capacity

– Up to USD 200 million per risk
– Up to 15 years

Coverage

Our political risk insurance helps businesses to protect their overseas investments in situations such as political violence or confiscation of assets. We cover risks from business disruption to outright loss of the overseas business – and a wide range of investments including new and existing projects, bank loans and leased assets. 

Our appetite:
– Expropriation, nationalization or confiscation of assets
– Fixed and mobile assets
– Equity holdings
– Shareholder loans and dividends
– Lender’s political risks
– Financial institutions
– Multilaterals and export credit agencies
– Specific projects
– Non-repayment or debt default by a state or state-owned enterprise
– Currency inconvertibility and non-transfer
– Non-cancellable coverage
– Pre-shipment risks
– US policies written on an admitted or non-admitted basis

Client Profiles

Large corporations, both public and private, involved in foreign direct investment, cross-border lending or international business, primarily in emerging markets across a variety of industries:
– Exporters/manufacturers
– Global financial institutions
– Commodity traders
– Engineering/procurement/construction contractors

Typical Information Required

– Summary of the investment/assets to be covered, including estimated values
– Summary of the insured’s experience doing business in the country(ies) involved 
– Coverages being requested and tenor requirements

Benefits & Services

– Capability to issue policies from the US, UK, Singapore, Bermuda, Canada, Brazil, Australia and Insurance segment's Lloyd’s syndicate 2003 to accommodate licensing and geographical location requirements.
– Underwriting locations in New York, London, Singapore, Hamilton, Toronto, Brazil and Sydney provide local, same-time zone access to our global capabilities.

Minimum Deductible

Varies, if applicable

Minimum Premium

Varies

This general product description is informational only. It is neither an offer to sell nor a solicitation to purchase any particular insurance product. Products are subject to legal and underwriting requirements. Coverages may not be available in all jurisdictions, including without limitation any jurisdiction within the United States, and may be available only through appropriately licensed producers. In addition, GAPS’s provision of publications or services is not an indication of the existence or availability under any policy of coverage for any particular property or type of loss or damage. Policies underwritten from Bermuda, Brazil, Canada, China, Mexico, Switzerland, or written by XL Insurance Company SE are only available through non US-based brokers. The Insurance companies of XL Group Ltd are: Catlin Insurance Company, Inc., Catlin Indemnity Company, Catlin Specialty Insurance Company, Greenwich Insurance Company, Indian Harbor Insurance Company, XL Insurance America, Inc., XL Specialty Insurance Company, XL Bermuda Ltd, XL Insurance Company SE, XL Insurance Switzerland Ltd, XL Insurance (China) Company Limited, XL Seguros Brasil S.A. and XL Insurance Mexico SA de CV. Coverages placed with Lloyd’s Syndicate #2003 are managed by Catlin Underwriting Agencies Limited and supported by XL Catlin corporate capital. Additional important information regarding our business is provided on our Legal Notices page.

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