MIGA Teams Up With Nippon Export and Investment Insurance
WASHINGTON, July 2, 2009—Nippon Export and Investment Insurance (NEXI) has entered into a reinsurance agreement with the Multilateral Investment Guarantee Agency (MIGA), the political risk insurance arm of the World Bank Group. This is the first reinsurance agreement between NEXI and MIGA.
Under this agreement, NEXI is providing reinsurance for a portion of MIGA’s exposure in the Kupol mining project in Russia. MIGA issued guarantees for the project in 2006. NEXI’s reinsurance covers currency transfer restrictions, expropriation, and war and civil disturbance.
“We are very pleased to team up with NEXI,” says MIGA’s Executive Vice President Izumi Kobayashi. “This agreement will reduce MIGA's country risk exposure in Russia, and therefore increase MIGA's capacity to provide guarantees to more projects in the country. This is particularly important in view of the current turmoil in financial markets worldwide.”
NEXI was established as an Incorporated Administrative Agency funded by the Japanese Government in April 2001, to efficiently and effectively conduct insurance business of covering risks which arise in foreign transactions and which are not covered by commercial insurance. The scope of the business includes i) trade and investment insurance business operations and related business, ii) underwriting reinsurance under the insurance obligations of international institutions, foreign governments, or international companies that conduct insurance business （including reinsurance）which indemnifies losses similar to the losses covered by trade and investment insurance, and iii) entrusting reinsurance for the insurance obligation of NEXI to international institutions, foreign governments, or international companies that conduct insurance business (including reinsurance）which indemnifies losses similar to the losses covered by trade insurance as well as the reinsurance with the Government.Release no. 2009/134