Non-payment insurance has become an important and integral way for financial institutions to support their customers – while still managing their own prudential capital requirements.
By insuring a transaction, non-payment insurance can effectively allow a financial institution to swap its borrower’s probability of default with that of the insurer – at least an A- credit rating, but often AA.
So, whether the institution uses an internal ratings-based or standardised approach to calculating regulatory capital, it should benefit from capital relief on the insured transaction – and reduce the transaction’s impact on the balance sheet.
Texel negotiates non-payment insurance products that cover against default for any reason – whether by a borrower, swap counterparty, or issuing bank.
With a detailed understanding of the eligibility criteria, we will make sure that each insurance policy is worded in precisely the way that regulators require.
Throughout any transaction, financial institutions benefit from the expert advice of our in-house legal team. Meanwhile, our brokers’ unique combination of experience in banking, law and underwriting help ensure that clients understand how to manage their policy.
Together, we make a perfect partner for banks, development finance institutions, multilateral development banks and non-banking financial institutions. We help them build a distribution strategy that consistently gets the best from non-payment insurance.