Credit Insurance

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Credit Insurance

• A B2B Solution for managing trade receivables

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A NGi-Coface partnership

• NGi A growing composite national insurance
  company based in Dubai SP Rated BBB Stable
  outlook.
• An Associate company of Emirates Bank Group.
• Commercial Bank of Dubai and Dubai Investments
  are other major stake holders.

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COFACE

• Coface a world leader in Credit Insurance.
• Facilitates global trade by offering companies
  solutions to manage, finance and protect their
  customer portfolio, enabling them to outsource
  all or part of their receivables management as
  well as the related risks.
• Coface has over 4,850 employees serving 85,000
  clients.
• _at_rating, the groups flagship product allowing
  enterprises to insure trade debt throughout the
  world.
• Rated AA by Fitch and Aa3 by Moodys

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NGI - COFACE

• A Partnership to address the growing market for
  regional and international trade

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Credit Insurance A niche product, growing
steadily

• An alternative to L/Cs, CADs and other
  restrictive payment mechanisms
• Information driven
• Essential for exports ideal for domestic
  business
• Great for developing existing business and
  generating new business

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Globalliance Contract

• An attractive flexible product adapted to local
  law.
• Allows multinationals to insure foreign
  subsidiaries within a standardized framework
  (general provisions, policy management)
• Allows domestic based companies to insure
  domestic (and export) sales within a clearly
  worded policy.
• Offers a cover for factoring.

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Principal Characteristics of Globalliance Policy

• General Globalliance Agreement with the parent
  company.
• Single General Provisions and definitions for all
  subsidiaries.
• Modular approach (risks, underwriting,
  collection, etc.) matches the type of cover and
  services required by each entity (risks,
  underwriting, collection modules)
• Cover exports and domestic sales non-payment of
  debts (protracted default, insolvency and
  political risk)

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An Overview of the Policy

• Global policy for domestic and export
• Risk attaching
• Political Risk included
• Rate applied to the turnover
• Credit Limit Generally 100,000, can be
  significantly higher.
• Collection included for flat notification fee.
• Subscription to Cofanet an on line limit
  portfolio management application at no extra
  cost.
• Simple administration quarterly reporting

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Key Globalliance Modules

• CAUSES OF LOSS
• Insolvency (paid within 30 days of notice)
• Protracted default (5 months)
• Political Risk (no extra charge)
• - War
• - Decision preventing payment of a
  transaction.
• - Political events or economic difficulties
  preventing transfer of sum paid by the buyer.
• - Natural disaster indirectly leading to non
  payment.

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Key Globalliance Modules

• RISK MANAGEMENT
• Policyholders have access to a database shared by
  40 underwriting centers and 260 risk
  underwriters.
• Where 50 million buyers in 176 countries are
  followed.
• Enriched by each user in each country on real
  time.
• Where 10,000 decisions a day are taken by over
  260 underwriters.
• Monitored open trade credit lines on more than
  two million companies worldwide and total
  exposure of over 350 billion at any given time.

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Specific Types of Cover

• Binding Covers
• Covers a delivery
• Pending Orders
• Covers a schedule of supplies
• Contrary to most insurers, these modules are
  optional but at no additional cost.

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Profit Sharing Structure

• No Claims Bonus A percentage of premium paid at
  the end of the insurance period, if no claim
  declared.
• Profit Sharing Possibility for the insured to
  share in profits for Key Accounts only
• All subject to renewal of the Policy.

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Exclusions

• Commercial disputes
• Late Payment interest
• Losses in excess of the Credit Limit granted
  (overtrade)
• Sales concluded with a private individual, or
  with Government bodies/Organizations.
• Nuclear Catastrophe
• Conflict between two of the following nations
• China, France, United States, Russia and United
  Kingdom.

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Cofanet

• Instant web access to the online credit limit
  management system.
• As a Policy holder, you have the access to a
  unique credit limit management tool
• Cofnet, designed to enhance the online
  communication between the policyholder and
  Coface, our Partner on this Policy.
• Cofnet gives the policyholder direct access to
  the comprehensive buyer database and simplified
  everyday management operation related to the
  policy, including
• - Monitoring your current limits portfolio
• - Applying for credit limits on new buyer
• - Making modifications to and cancellations of
  existing buyers limits
• - Sending messages to our underwriters.

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Conclusion Key Benefits of the Globalliance
Policy

• Useful service to cross sell to existing clients
• Easy Policy to present modules provide
  flexibility.
• Easily integrated no complicated procedures
• Combined Policy for export and domestic cover.
• Use of _at_rating system in the Direct Credit Limit
  facility.
• Cofanet access for a faster and more efficient
  portfolio management, possibility of various
  Cofanet sub accounts accesses

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Conclusion Cont

• Collection services are offered as part of the
  policy for a flat fee.
• As risk attaching, cover is still valid after the
  Policy has expired for deliveries made within the
  policy period.
• Quarterly payments possible.
• Ground up cover possible
• Pending order clause for up to 90 days.
• Aggregate first loss is set at policy inception
  and does not vary.

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Conclusion cont

• Large clients/brokers have the possibility
  to access the Strategic Accounts Risk
  underwriters as a means to share information.
• Other products can be attached to the credit
  insurance policy at an overall better price
  for the client and resulting in a stronger
  relationship with the client.

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NGI targets for 2006

• 2006 Build product awareness
• Corporate
• Banking
• Free Trade Zones
• 2006 - Sign a moderate number of policies on
  a
• Direct Basis
• Through Banking Channel
• Through Insurance Brokers

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• Presented by
• D. Sudhakaran,ACII
• Chartered Insurer
• Senior Manager Technical Operations
• National General Insurance Co
• DUBAI