12TH ANNUAL GLOBAL CONV INS EXP CRED

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The Berne Union Over 70 Years of Working with
Banks as Partners
Kimberly Wiehl S E C R E T A R Y G E N E R A L
BAFT - 15 January 2008
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What is the Berne Union?
International Union of Credit Investment
Insurers 1934 4 members (public and
private) 2007 75 members insuring 1.1 trillion
-10 of total world export trade Public
members ECGC (India), ECGD (UK), EDC (Canada),
NEXI (Japan), OPIC (US), SACE (Italy), SBCE
(Brazil), SINOSURE (China), US EXIMBANK Private
members with a public mandate ATRADIUS, COFACE,
EULER HERMES Private Members AIG (USA), CYC
(Spain), ECICS (Singapore), ZURICH (USA)
Multilateral agencies ICIEC (Islamic
Corporation for Import and Export Credit) MIGA
(member of the World Bank Group)
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What are the Purposes of the Berne Union?
Value Statement We are committed to operate in a
professional manner that is financially
responsible, respectful of the environment and
which demonstrates high ethical values - all in
the best interest of the long-term success of our
industry. Sound Principles to work for the
international acceptance of sound principles of
export credit (and) foreign investment
insurance See Guiding Principles
attached. Interaction to provide for the
exchange of information, assistance, expertise
and advice (i.e. providing members with a
forum for co-operation professional
interaction)
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Members Ownership Structures
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Berne Union Members New Business 1982 - 2006
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New Business Premium 2006
New business covered (USD billion) Short
Term 969 Medium/Long Term 130 Investment
42 Total 1,141 Premium income
(USD billion) Short Term 2.3 Medium/Long
Term 3.6 Investment 0.6 Total 6.5
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Short Term bn United
States 60.8 Italy 58.1 Germany 55.8 France 49.
6 United Kingdom 47.6 Spain 40.3 China
28.4 Netherlands 25.7 Belgium 23.8 Switzerland
17.6
Medium/LongTerm bn United States 28.0 Iran 23.6
China 21.2 Russia 18.9 Turkey 17.6 Qatar 15.4
Mexico 13.7 Saudi Arabia 12.4 Indonesia 11.0 Indi
a 10.9
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Berne Union Prague Club
Initiated in 1992 by new ECAs from Czech
Republic, Hungary, Poland, Slovakia and
Slovenia Purpose to develop national credit
insurance schemes to encourage international
trade and practices according to the
international rules Aim to become members of the
Berne Union in future MEHIB (Hungary), SID
(Slovenia), KUKE (Poland), EGAP (Czech Republic),
SLOVAK EXIM, THAI EXIMBANK and ECIC SA are joint
members 30 Members from Central East Europe,
CIS, Africa, Middle East, Asia 3 regional
associations Africa Trade Insurance (ATI), The
Islamic Corporation for the Insurance of
Investment and Export Credit (ICIEC) and The
Inter-Arab Investment Guarantee Corporation
(IAIGC)
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• Berne Union Guiding Principles
• How do they apply in working with Bank
  partners?
• We conduct our business in a manner that
  contributes to the stability and expansion of
  global trade and investment on a sound basis,
  that is in accordance with applicable laws and
  relevant international agreements.
• 10. We encourage co-operation and partnering with
  commercial, bilateral, multilateral and other
  organisations involved in export trade and
  investment business.

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• Berne Union members work together with banks by
  risk sharing on both the single transaction and
  portfolio level. There is further risk capacity
  to be tapped.
• Banks need to be aware of the Berne Union
  members ability to take risk at the margin -
  to make trade happen.
• Project finance, local currency finance,
  structured finance, letter of credit insurance,
  credit insurance product sales are all areas
  where credit insurers and banks work together as
  transaction partners.
• Berne Union members are willing to use their
  expertise/contacts to further develop trade
  activities by region and/or business line
• Berne Union members promote greater transparency
  and influence by their advocacy activities with
  governments

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Berne Union Guiding Principles

• We conduct our business in a manner that
  contributes to the stability and expansion of
  global trade and investment on a sound basis,
  that is, in accordance with applicable laws and
  relevant international agreements
• We carefully review and manage the risks we
  undertake
• We promote export credit and investment insurance
  terms that reflect sound business practices
• We aim to generate adequate revenues to sustain
  long-term operations reflective of the risks we
  undertake
• 5. We manage claims and recoveries in a
  professional manner, whilst at all times,
  recognising the insureds and obligors rights
• We are sensitive about environmental issues and
  take such issues into account in the conduct of
  our business.

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Berne Union Guiding Principles
7. We support international efforts to combat
corruption and money laundering 8. We promote
best practices through exchange of information on
our activities, policies and procedures and
through the development of relevant agreements
and standards, where these are deemed necessary
to govern the provision of export credit and
investment insurance 9. We are committed to
furthering transparency amongst members and in
the reporting of our overall business activities,
reflective of international practices and
respectful of the confidentiality of third party
information. 10. We encourage co-operation and
partnering with commercial, bilateral,
multilateral and other organisations involved in
export trade and investment business.
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• Berne Union member companies conduct business in
  one or more of three business areas short term
  export credit insurance, medium/long term export
  credit insurance/lending, and investment
  insurance. The activities of the Berne Union are
  organised in committees for the three business
  areas. Each Berne Union member company is a
  member of one, two or all three committees,
  reflecting their fields of business.
• ST - Short Term Export Credit Insurance
• The global volume of short term export credit
  insurance is expanding year by year. This
  reflects the slow but steady increase in market
  penetration of credit insurance, though most of
  the world trade on cash or short payment terms is
  still unsecured. ST business figures as shown in
  the Berne Union statistics are also influenced by
  the growing membership of the Berne Union and its
  ST committee.
• A major portion of all business in the ST field
  is done by three large private companies or
  groups ATRADIUS, COFACE, EH GERMANY who are
  headquartered in Europe but have extensive
  operations in many parts of the world. Outside
  Europe, several public agencies as well as
  private insurers are significant actors in the ST
  area. Many public agencies in Europe do modest or
  little ST business due to European Union rules,
  though some are more active via subsidiaries.
  Most ST business is done on up to 180 day credit
  terms. For the purposes of Berne Union
  statistics, ST is defined as up to and including
  1 year credit terms. Some insurers use other
  definitions in their own organisations.
• Participating members AIG, ASEI, ATRADIUS,
  BANCOMEXT, CESCE, CGIC, COFACE, COSEC, CREDSURE,
  CYC, ECGC, ECICS, EDC, EFIC, EGAP, EKF, EKN, EH
  GERMANY, EXIM JAMAICA, FINNVERA, GIEK, HKEC,
  ICIEC, KEIC, KUKE, MEHIB, MEXIM, NEXI, OEKB,
  ONDD, SACE, SBCE, SERV, SID, SINOSURE, SLECIC,
  SLOVAK EXIM, TEBC, THAI EXIMBANK, TURK EXIMBANK,
  US EXIMBANK, ZURICH

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• MLT Medium/Long Term Export Credit
  Insurance/Lending
• MLT business is project-type transactions or
  sales of capital goods on longer credit terms.
  Within the Berne Union, MLT is defined as more
  than 1 year credit terms (or more than 1 year
  pre-credit cover), although some members use
  other definitions for their own purposes.
• In the past (up until the 1990s), MLT
  transactions typically involved sovereign or
  other government buyers/debtors. Following
  wide-going privatisation, MLT buyers/debtors are
  today mostly corporates, banks or sub-sovereign
  entities. At the same time, several alternatives
  to export credits have appeared in many markets,
  such as capital market financing or local
  financing etc. Some MLT insurers are also
  lenders, providing MLT loans to foreign
  buyers/debtors. These are marked by below.
• Participating members ASHRA, ATRADIUS,
  BANCOMEXT, CESCE, COFACE, COSEC, ECGC, ECGD, ECIC
  SA, ECICS, EDC, EFIC, EGAP, EKF, EKN, EH
  GERMANY, FINNVERA, GIEK, KEIC, KUKE, MEHIB,
  MEXIM, NEXI, OEKB, ONDD, SACE, SBCE, SERV, SID,
  SINOSURE, SLOVAK EXIM, TEBC, TURK EXIMBANK, US
  EXIMBANK

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• INV Investment Insurance
• Investment insurance provides cover against
  political risks caused by events such as
  expropriation, transfer restrictions, war and/or
  breach of contract by public authorities. (It is
  sometimes, particularly in North America,
  referred to as political risk insurance, PRI.)
• Traditionally, investment insurance was provided
  to protect capital invested as equity in foreign
  companies. Today, both shareholder loans and
  non-shareholder loans are usually covered as
  well. Investment insurers are either private
  companies or public agencies.
• Berne Union statistics on investment insurance
  show a significant growth in recent years. This,
  however, reflects that more and more insurers
  have become members of the Union.
• Participating members AIG, ASHRA, ATRADIUS,
  CESCE, CHUBB, COFACE, COSEC, ECGC, ECGD, ECIC SA,
  EDC, EFIC, EGAP, EKN, FINNVERA, GIEK, ICIEC,
  KEIC, MEXIM, MIGA, NEXI, OEKB, ONDD, OPIC, PWC,
  SACE, SID, SINOSURE, SOVEREIGN, TEBC, ZURICH

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• In 2001 Kimberly Wiehl was appointed as
  Secretary-General of the International Union of
  Credit and Investment Insurers, the Berne Union.
  Based in London, she directs the professional
  activities of the international association of 50
  Members including government export credit
  agencies, private insurers and multilateral
  agencies from 42 countries and locations.
• The Berne Union runs a regular series of
  meetings, seminars and regional events for the
  advancement of industry technical expertise. In
  addition, the association has active ongoing
  relationships with major multilateral financial
  institutions such as the WTO, the UN, the World
  Bank, the IMF,OECD, EBRD and Asian Development
  Bank.
• Previously Ms Wiehl was Managing Director, in
  charge of the Central Eastern Europe, Middle
  East and Africa Structured Debt team at JPMorgan,
  London. The group specialised in the origination,
  structuring and placement of trade and project
  finance related debt, including sovereign loans,
  export credit agency enhanced credits, asset
  backed financing and other trade related
  instruments.
• She worked at JPMorgan and its predecessor
  institutions, Chase Manhattan and Chemical Bank,
  in both New York and London, having extensive
  experience in European Loan Syndications and
  Global Commodity Finance.
• She has an A.B. in French and Political Science
  from Middlebury College and an MBA in
  International Management from Thunderbird School
  of Global Management. She currently serves on the
  Thunderbird Board of Trustees.
• Contact details Berne Union, 1-2 Castle Lane,
  London SW1E 6DR
• Tel. [phone], email
  kwiehl_at_berneunion.org.uk