HC Deb 07 October 2003 vol 411 cc144-7W
Dr. Cable:

To ask the Secretary of State for Trade and Industry pursuant to her Answer of 20 June 2003, Official Report, column 493W, on ECGD, if she will list the exposure under each reinsurance contract; what the split of business reinsured between defence and non-defence is; which claims have been (a) notified but not yet agreed and (b) agreed but not paid; and what projections have been made of expected claims payments. [130246]

Mr. Mike O'Brien:

Since the start of 1997, ECGD has reinsured 22 deals with other Export Credit Agencies (EGAs) in respect of medium/long-term business. ECGD has received no claims and therefore paid no claims. ECGD does not currently anticipate receiving any claims in respect of any of these cases. Current Exposure refers to the amount that ECGD has reinsured which is still outstanding.

Reinsured ECA Underlying insured party Risk status
Hermes VAI Industries (UK) Ltd Corporate
Sace Skanska Construction UK Limited Sovereign
Sage Saipem UK Limited Corporate
Oekb-Oesterreichische Kontrollbank VAI Industries (UK) Ltd Corporate
Coface and Sage Demag Delaval Industrian Turbomachinery Limited Public and Corporate
Sage Shell Research Limited Public
Coface Alstom Power Plants Ltd Sovereign
Export import bank of the United States Rolls-Royce plc Corporate
Hermes Traffic Safety Systems Limited Sovereign
Export import bank of the United States Rolls-Royce plc Corporate
Coface MBDA UK Limited Sovereign
Sace CRI Catalyst Company UK Ltd Sovereign

Reinsured ECA Market Original value Current exposure Issue date Sector
Coface Singapore 10,022,063 0 1997 Civil
Coface Taiwan 9,983,926 0 1997 Civil
Hermes Croatia 1,799,326 472,347 1998 Civil
Coface United Arab Emirates 9,584,759 0 1998 Civil
Coface Kuwait 29,661,020 0 1999 Defence
Hermes Mexico 2,625,958 204,887 1999 Civil
Hermes Croatia 9,996,706 9,996,706 1999 Civil
Coface Turkey 331,719 88,440 1999 Civil
Hermes Dominican Republic 29,520,129 20,114,522 2000 Civil
Office National du Ducroire (OND) India 47,386,230 27,074,794 2000 Civil
Hermes Brazil 21,228,898 18,614,705 2001 Civil
Sace Iran (Islamic Republic of) 40,140,469 31,308,243 2001 Civil
Sage Russian Federation 108,855,581 97,244,455 2001 Civil
Oekb-Oesterreichische Kontrollbank Brazil 2,439,928 1,957,556 2001 Civil
Coface and Sage Algeria 119,365,812 53,669,781 2001 Civil
Sage Iran (Islamic Republic of) 23,425,293 23,425,293 2002 Civil
Coface Turkey 33,637,809 32,406,342 2002 Civil
Export import bank of the United States Israel 5,595,278 5,015,491 2002 Civil
Hermes Romania 1,046,965 1,046,965 2002 Civil
Export import bank of the United States Luxembourg 16,453,233 14,599,275 2002 Civil
Coface United Arab Emirates 39,505,804 39,505,804 2002 Defence
Sace Iran (Islamic Republic of) 13,498,847 0 2003 Civil

The is no current exposure for all four short-term reinsurance cases as these deals have been fully paid. ECGD has received no claims and paid no claims on

Reinsured short-term insurer Underlying insured party Risk status Market
NCM Credit Insurance Ltd Marconi Corporation plc Corporate Germany
NCM Credit Insurance Ltd Royal Ordnance plc Sovereign Singapore
NCM Credit Insurance Ltd BAE Systems (Defence Systems Ltd) Public United Arab Emirates
NCM Credit Insurance Ltd Rolls-Royce Industrial Power (India) Ltd Corporate Canada

Reinsured short-term insurer Original

value £

Current

Exposure £

Issue

date

Sector
NCM Credit Insurance Ltd 1,337,736 0 1998 Defence
NCM Credit Insurance Ltd 18,600,000 0 1998 Defence
NCM Credit Insurance Ltd 8,000.000 0 1997 Civil
NCM Credit Insurance Ltd 765,600 0 1998 Civil

Dr. Cable:

To ask the Secretary of State for Trade and Industry if she will list reinsurance contracts underwritten by the ECGD; and in each case (a) who the

(a) Reinsured ECA (b) Underlying insured party Risk status Market (e) Claims paid £ Issue dale Sector Original value £ (d) Current exposure £
Coface (France) Matra Marconi Space UK Ltd Corporate Singapore 0 1997 Civil 10,022,063 0
Coface (France) Matra Marconi Space UK Ltd Public Taiwan 0 1997 Civil 9,983,926 0

these. The BAE Systems case in the following table refers to air traffic systems.

reinsured party is, (b) who the underlying insured party is, (c) what cover is provided, (d) what the amount of the total exposure under the contract is and (e) what amounts have been paid in respect of these contracts for each year up to and including 1997. [129932]

Mr. Mike O'Brien:

Prior to the end of 1997, ECGD provided reinsurance to other Export Credit Agencies (EGAs) under Co-operation Agreements on only two occasions in respect of medium/long-term business. The cover provided was reinsurance of all risks covered by the lead EGA.

Current Exposure refers to the amount that ECGD has reinsured which is still outstanding.

These cases are also referred to in PQ No. 130246 answered today and were the first cases under the first Co-operation Agreement (with France) that was signed in 1995.

Reinsured short-term insurer Underlying insured party Risk

status

Market Original

value £

Current

exposure £

Issue

date

Sector
NCM Credit Insurance Ltd BAE Systems (Defence Systems Ltd) Public United Arab Emirates 8,000,000 0 1997 Civil

However, it would incur disproportionate cost to list and detail every occasion that ECGD has provided short-term reinsurance prior to 1997 due to the very large numbers involved. When its short-term business was privatised in 1991, ECGD provided reinsurance on all exposure transferred to the commercial insurer (NCM Credit Insurance Ltd.)

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