Investment and loan protection from political risks resulting from acts of government including but not limited to nationalisations, discrimination or intervention against foreign owned business in contravention to investors rights under host country or international law, failure of the government to pay contractually due amounts, restrictions on the transfer of foreign currency and damage to investments from acts of terrorism, political violence and / or war.
Political Risk Insurance provides protection against equity invested in or loans made to from a parent or to a subsidiary or Joint venture. Provides the risk transfer of catastrophic loss scenarios that can damage a company’s balance sheet, P&L and have a consequential impact on share prices.
Political risk insurance coverage for banks protects against non-payment by the borrower (or guarantor) of principal and interest due to creditors as a result of certain defined political events. Provides country risk mitigation.