Reinsurance giant Munich Re and broker Guy Carpenter have helped the Credit Guarantee and Investment Facility (CGIF) complete its first reinsurance treaty, signalling a new beginning for specialty reinsurance in Asia.
The innovative reinsurance treaty was executed with a panel of leading reinsurers, led by Munich Re’s specialist credit reinsurance team. The treaty incepted on October 1st 2016, the reinsurance treaty covers all guarantees issued up to the end of 2017.
“The successful inception of this treaty demonstrates the attractiveness of CGIF’s guarantee portfolio to private reinsurers. It also validates the strength of CGIF’s guarantee operations in terms of its selection, assessment and monitoring of the region’s local currency corporate bond exposures,” said Kiyoshi Nishimura, Chief Executive Officer (CEO) of CGIF.
Under the terms of the treaty CGIF has reinsured a portion of its guarantee portfolio, which allows it to issue more guarantees, ultimately enhancing its ability to perform its role for the development of ASEAN local currency bond markets.
“We do very much appreciate closely supporting CGIF as it is a very professional trust fund of ADB with the special mandate to develop local Asian bond markets. This perfectly goes along with Munich Re’s strategic ambition to further expand business opportunities in the Asian region,” explained Thomas Lallinger, Munich Re’s Head of Financial Risk Division.
President and CEO of Guy Carpenter, the reinsurance broker that participated in the treaty, Peter Hearn, said; “We are truly proud and privileged to have worked with CGIF to help deliver a unique solution that brings together different areas of the financial sector for the benefit of the Asian community.”