Political Risk Insurance

Political Risk Insurance

Wings and Freeman Capital promotes Political Risk Insurance (PRI) of up to USD 1 billion against losses caused Political Risks by U.S. International Development Finance Corporation (DFC). This allows entities to invest their own capital or obtain financing that would not be possible without coverage of inconvertibility, expropriation, political violence or arbitral awards. For example:

  • You need to transfer earnings abroad in a foreign currency, but the host country may enforce restrictive foreign exchange regulations resulting in inability to convert and transfer funds – We can facilitate obtaining Currency Inconvertibility PRI product.
  • Your business faces nationalization, confiscation, abrogation or forced renegotiation of contract rights, or any other forms of unlawful interference by the host government – you will be offered an Expropriation Risk Insurance by DFC.
  • You feel your business needs to be protected from assets and income losses resulting from declared/undeclared war, revolutions/civil strife, terrorism, hostile actions by national/international forces – you may benefit from purchasing the PRI facility against Political Violence. You can purchase this insurance for Assets, Business Income, or both.
  • You represent a licensed international or U.S. insurance company, and you would like to increase underwriting capacity and support development in countries where investors have difficulty obtaining political risk insurance – we can help you in obtaining Reinsurance from DFC.
  • You are an exporter and want to be covered against the risk of a wrongful calling of “on demand” guarantees (such as standby letters of credit) – you will be advised to undertake Guaranty Coverage PRI product.

DFC Political Risk Insurance can cover up to 1 billion per project for up to 25 years. Annual base rated vary from 0.25% to 0.7% of Coverage amount. Discounts are available for “Small Businesses” (an entity with annual revenues of less than $250 million, or a net worth or stockholders’ equity of less than $67 million). 

Our individual approach to each Project of every Company is reflected in the scope of activities performed by our team members. Namely, we start from creating a roadmap to our clients and follow it through the following activities: 

  • Checking the insurance project against DFC eligibility criteria;
  • Preparing the initial screening documentation;
  • Preparing financial model and the other required documentation in the form acceptable to DFC;  
  • Filing an insurance application;
  • Facilitating the communication with DFC.

Once engaged, our team will guide the project owners from the very initial process of preparing the application package through the due diligence procedures up to the negotiations of terms and signing the PRI agreement.