US Export-Import Bank secures reinsurance coverage
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The Export-Import Bank of the United States has secured a $1 billion reinsurance program with a panel of 10 reinsurers using Aon Benfield as broker, the reinsurance intermediary said Monday.
The arrangement is led by XL Group Ltd., Liberty Managing Agency Ltd., part of Liberty Mutual Holding Co. Inc., and Everest Re Group Ltd. and secures an additional $1 billion in loss coverage for a significant portion of EXIM’s existing portfolio of large commercial aircraft financing transactions, Aon Benfield said in a statement.
This deal 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, according to the statement.
Further, the program was funded by the fees generated by the original commercial aircraft transactions and will not cost U.S. taxpayers additional funds, the statement said.
“This landmark deal is a stepping stone to a more creative use of the private markets in global trade finance for EXIM,” EXIM’s executive vice president and chief operating officer, Jeffrey Goettman, who is serving as acting head of agency, said in the statement.
“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,” Aon Benfield CEO Eric Andersen said in the statement.
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