Direct investments abroad
“I plan to invest abroad but I am worried about the impact of political risk on my business.”
The acquisition of a business, commencing production abroad or opening of a foreign distribution company are the standard instruments used to expand onto new markets and boost sales. The risks that can have an adverse impact on such advances are unexpected events of political nature in the country of the investment. This could be, for example, a change in legal regulations concerning the investment – a risk present even in countries of the European Union. Our insurance protects your business against these risks.
Your company is planning to expand and start a business activity abroad. You know the potential of the market you intend to invest in and are ready to accept a certain investment risk, but you are afraid of risk beyond your control. We offer the insurance covering all the losses incurred in connection with the implementation of direct investment abroad resulted from the events defined as political risk, such as:
- decisions in the form of government intervention preventing effective execution of the investment,
- imposing of a universal payment moratorium,
- decisions regarding trade restrictions involving the prohibition of export,
- inability to transfer receivables (e.g. dividends),
- total deprivation of the possibility of exercising rights under the investment.
Theindemnity is also payable if the investment is destroyed as a result of force majeure, e.g. earthquake, flood, fire or war.
What kind of investments do we insure?
We insure investments that are:
- comply with the binding and applicable law in the country of the investment at the time of carrying out the investment.
The insurance covers direct investments abroad, understood as:
- acquisition of a foreign company or its organised part,
- establishment of a company abroad (including branches and representative offices),
- allocation of funds to extending operations of an existing representative office,
- performance of additional contributions and granting of loans by shareholders,
- acquisition of real estate and other fixed assets.
What is the subject of insurance?
We insure the investor’s pecuniary and tangible expenditures, as well as intangible and legal assets contributed by the investor to a foreign business.
What are the benefits?
- The investment is protected against political risk occurring in the country of investment.
- A compensation is provided that allows recovery of invested funds.
- The payment of the indemnity is guaranteed by the State Treasury.
- The cover spans nearly 200 countries worldwide, in line with the current policy regarding officially supported export insurance.
- The insurance covers a period of even up to 15 years.
- Up to 90% of the value of the investment can be covered by the insurance.