Tokio Marine HCC (TMHCC) and Tokio Marine & Nichido Fire Insurance Co., Ltd. (TMNF) have partnered up with Asian Development Bank (ADB), along with four other global insurers to participate in ADB’s new framework credit insurance program.
The program covers loans for financial institutions, and also increases lending capacity by $1 billion in the Asia-Pacific region.
Moreover, the Tokio Marine Group will provide the largest portion of capacity.
The Asia-Pacific region accounts for more than one-third of the world’s GDP, however while it plays an important role in the global economy, it faces a wide range of social issues such as poverty.
ADB has been working to resolve these social issues through funding, knowledge and technology, as well as promoting local policies consistent with major international programs such as the United Nations’ Sustainable Development Goals and the Paris Agreement.
At the same time, ADB’s program utilizes credit insurance which covers losses in the event of non-payments by borrowers under loan agreements, to cover its loans to financial institutions meeting certain criteria over the next three years.
The program will also enable ADB to mitigate its credit risk exposure and provide funding to organizations throughout the Asia-Pacific region.
Furthermore, the program also gives both TMHCC and TMNF the opportunity to address social issues within this region by promoting access to financial services, increasing job creation, expanding access to housing and advancing gender equality.
“Tokio Marine HCC is pleased to partner with ADB and offer our underwriting expertise to a program that increases lending in ways which help elevate some of the poorest people in Asia-Pacific. ADB’s corporate social responsibility endeavors are closely aligned with our own Good Company vision and efforts. At Tokio Marine HCC and throughout the Tokio Marine Group, we are committed to a safe, secure and sustainable future for all,” said Susan Rivera, Tokio Marine HCC’s Chief Executive Officer.
Jerome Swinscoe, President of Tokio Marine HCC – Credit Group, added: “With the international expertise necessary to underwrite insurance designed to protect against financial losses originating from credit and political risks, Tokio Marine HCC is well positioned to support ADB’s credit insurance program. We know the risks related with political instability, economic uncertainty, government interventions and social discontent.”
