CGIF signs first reinsurance treaty with world leading reinsurers
CGIF is a multilateral facility that was established by the Association of Southeast Asian Nations (ASEAN) members, China, Japan, Korea (ASEAN+3) and the Asian Development Bank (ADB).
The ADB trust fund was established to develop and strengthen local currency and regional bond markets in the ASEAN+3 region. CGIF commenced its guarantee operations on 1 May 2012 and seeks to provide credit enhancements, mainly in local currencies, issued by credit-worthy ASEAN+3-domiciled bond issuers.
This inaugural reinsurance treaty was incepted on 1 October 2016 and covers all guarantees issued up to the end of 2017.
hide
Under the treaty, CGIF has reinsured a portion of its guarantee portfolio. This will allow it to issue more guarantees and thereby enhance its ability to perform its “unique catalytic role” for the development of ASEAN local currency bond markets, stated the fund.
“The successful inception of this treaty demonstrates the attractiveness of CGIF’s guarantee portfolio to private reinsurers,” said Kiyoshi Nishimura, CEO of CGIF. “It also validates the strength of CGIF’s guarantee operations in terms of its selection, assessment and monitoring of the region’s local currency corpo-rate bond exposures,” he added.
Thomas Lallinger, head of Munich Re’s financial risk division, said: “We do very much appreciate closely supporting CGIF as it is a very professional trust fund of ADB, with the special mandate to develop local Asian bond markets. This perfectly goes along with Munich Re’s strategic ambition to further expand business opportunities in the Asian region.”
The innovative reinsurance treaty was brokered by Guy Carpenter and, according to the fund, heralds a “new beginning” for specialty reinsurance in Asia.
“We are truly proud and privileged to have worked with CGIF to help deliver a unique solution that brings together different areas of the financial sector for the benefit of the Asian community,” said Peter Hearn, president and CEO of Guy Carpenter.
