You want to set up or acquire a foreign company? With investment insurance, you cover the risks.
Many Dutch companies invest abroad by acquiring companies or setting up subsidiaries. In more distant countries, there are often political risks involved. As a result, you may lose your investment or have to write off (part of) it. Atradius Dutch State Business covers you against these political risks. This protects your own balance sheet.
- companies established and economically active in the Netherlands;
- banks financing foreign investments of Dutch companies.
We assess your application on a case-by-case basis. In principle, cover is possible on most emerging economies and developing countries. However, countries subject to certain trade sanctions or where the security situation is seriously compromised are excluded.
We may also accept certain risks on a country and not others. Please check with us in good time.
What types of investments are covered?
We can insure the following investments abroad:
- your ownership of -or majority interest in- a company;
- a loan from yourself to your subsidiary;
- your branch office;
- leasing of goods to your subsidiary or affiliate;
- a guarantee to a third party to finance your subsidiary;
- a loan from a bank to finance your subsidiary.
Insurance is intended for new investments. We recommend that you apply to us before your investment begins so that we can let you know in advance whether the risks are covered.
You can co-insure existing investments if you make a new investment of at least the same value in the company in question.
Who can apply for Investment Insurance?
- companies established and economically active in the Netherlands;
- banks financing foreign investments of Dutch companies.
Which countries can you get coverage on?
We assess your application on a case-by-case basis. In principle, coverage is possible on most emerging economies and developing countries. However, countries subject to certain trade sanctions or where the security situation is seriously compromised are excluded.
We may also accept certain risks on a country and not others. Please check with us in good time.
Duration of insurance.
The investment must be completed no later than five years from inception. The insurance can run up to fifteen years from the time the investment is ready, or twenty years from the start of the investment. After the fourth year, you may terminate the insurance unilaterally. No premium is then due for the remaining years.
Compensation
The indemnity does not exceed €75 million for loans and €100 million for investments in assets.
Waiting period
As with credit insurance, a waiting period of three months usually applies before you are entitled to compensation. This gives you and us the opportunity to still limit or repair the loss.
Excess and percentage of cover
For each covered loss, you will be compensated up to the maximum covered percentage (90%). This means that you, as investor or financier, bear a 10% deductible.
Premium you pay annually on the amount specified by you, the investor or financier. The premium depends on the investment country and the extent of coverage. It varies for the risks of war, expropriation and transfer together between 0.65% and 1.1% per year. For investments over €50 million, there is a limited increase in these rates for the portion exceeding €50 million.
How much does export credit insurance cost?
The amount of the premium is fixed at the beginning of the transaction. It depends, among other things, on the contract amount, the country of export and the rating of your customer.
