Working closely with banks and alternative lenders to create flexible insurance solutions.
Who is it for?
Established trade banks and alternative lenders. Single risks/named buyers: equivalent of BB- or better (by S&P). Portfolios with deductible: wide range of risks.
Trade Finance for Financial Institutions
AIG’s Trade Finance insurance can protect financial institutions as insured against the risk of non-payment of the obligors in trade finance transactions. AIG insurance solutions can help financial institutions to manage credit exposure and reduce regulatory capital allocations in line with Basel Accords and other local regulations.
Trade Finance for Corporates
AIG’s Trade Finance insurance can assist corporates to develop and expand their financing programmes. With Basel Accords compliant insurance cover for buyer non-payment risk of the trade transaction, a lender may have a more cost effective trade finance solution.
Trade Finance Credit Insurance
Trade Finance Transactions Covered
Letters of credit
Structured trade finance
Trade loans/asset backed lending
Trade Finance Solutions
Flow - simple single risk and named buyer wording or market/insured wordings
Portfolio - excess of loss structure
TC Bridge - both corporate and funder benefit from a cost effective solution
What Makes AIG Different
Partnerships built on trust, expertise and innovation
Solutions that match funder needs and regulatory compliance for capital relief
Includes scalable programmes, on/off balance sheet and securitisation style structures
Summary of Policy Types, Obligors Rating and Global Capabilities
Trade Finance Policies
Single risk/multi-named buyers or Portfolios
Basel Accords compliant
Indemnity or Excess of Loss cover
Flexible solutions to match the financial institutions risk profile and regulatory capital needs
Up to one year or maximum 18 months non-cancellable limits
Integrated technology solutions available
Trade Finance structuring and back up servicing available
Can support group and discretionary limits
Single Risk/ Multi-Named Buyers
Obligors rated BB- (or S&P equivalent) or better
AIG can consider a wide spread of obligors in a portfolio, with appropriate excess of loss structure
AIG can provide locally admitted insurance in over 200 countries and jurisdictions.*