EXIM Bank Announces Landmark Risk-Sharing Program With Private-Sector Reinsurers
March 29, 2018
(Ex-Im Bank)
Innovative risk-sharing program fulfills EXIM’s charter by working with the
private sector to minimize risk of losses and protect U.S. taxpayers
Washington, D.C. – The Export-Import Bank of the United States (EXIM)
announced the launch of a groundbreaking reinsurance program that works with the
private sector to share risk and provide an additional $1 billion in loss
coverage for a significant portion of EXIM’s existing portfolio of large
commercial aircraft financing transactions.
EXIM’s historic program is the largest public-private risk-sharing arrangement
for a U.S. government credit agency. This transaction represents the maximum
allowable coverage permitted under EXIM’s charter and fulfills its 2015
congressional reauthorization mandate to engage in risk sharing with the private
sector to minimize the bank’s and U.S. taxpayers’ liability for potential
future losses.
“We are excited to announce this historic arrangement with the private sector
that protects EXIM Bank and safeguards U.S. taxpayers’ interests without
requiring additional funding,” said Executive Vice President and Chief
Operating Officer Jeffrey Goettman, who is serving as EXIM’s acting head of
agency. “EXIM is committed to a path of financial innovation and risk-sharing
with the private sector. This landmark deal is a stepping stone to a more
creative use of the private markets in global trade finance for EXIM and assists
in accomplishing our mission to support U.S. exports and American jobs.”
EXIM worked with Aon Benfield, the global reinsurance intermediary of Aon plc,
to complete this $1 billion reinsurance program that was led by XL Catlin,
Liberty Specialty Markets and Everest, among a group of 10 reinsurers. The
program was funded by the fees generated by the original commercial aircraft
transactions and will not cost U.S. taxpayers additional funds.
Aon Benfield CEO Eric Andersen said, “Aon Benfield’s work with EXIM Bank is
another fantastic example of how the re/insurance industry can assist public
entities in the United States to de-risk their balance sheets and remove
potential volatility, to the benefit of the government and taxpayers. Our firm
is committed to developing solutions in this space that utilize high-quality
capital and provide diversifying growth opportunities for re/insurers.”
Aon plc is a leading global professional services firm providing a broad range
of risk, retirement and health solutions. Aon operates in 120 countries to
empower results for clients by using proprietary data and analytics to deliver
insights that reduce volatility and improve performance.
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