As a result of the 2015 Reauthorization, EXIM launched a groundbreaking reinsurance program[1] in 2018 to work with the private sector to share risk. The reinsurance program provided an additional $1 billion in loss coverage for a significant portion of EXIM’s then existing portfolio of large commercial aircraft transactions.
At the time, EXIM’s innovative reinsurance program was the largest public‐private risk‐sharing arrangement for a U.S. government credit agency. EXIM is committed to building off the success of its reinsurance pilot program.
On December 22, 2022, EXIM’s Board of Directors approved additional risk sharing arrangements on a transaction-by-transaction basis with private sector entities such as insurance companies and other acceptable counterparties. This action by the Board of Directors builds on the risk sharing tools the EXIM currently uses such as co-financing with other Export Credit Agencies (ECA) and co-risk mitigation with private sector insurers or other parties.
By approving the additional risk sharing arrangements in December 2022, EXIM’s main objectives are to:
- Increase trade finance by “crowding-in” the private sector;
- Share risk with the private sector, thereby minimizing risk to the US taxpayer; and
- Equip EXIM with additional tools as part of its comprehensive risk management strategy.
Private sector entities interested in working with EXIM on a risk sharing basis are invited to contact EXIM with their proposed transaction and proposed risk sharing arrangement at RiskShare@exim.gov.
More information on EXIM’s risk sharing activities can be found on our website www.exim.gov/news.
[1] https://www.exim.gov/news/exim-bank-announces-landmark-risk-sharing-program-private-sector-reinsurers