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.
Which risks can be insured?
The insurance can provide cover against political risks. We distinguish between four types of risk, which you may or may not choose to include, either separately or in any combination you wish. These are:
- Capital restrictions (transfer barriers, moratoriums, conversion risks);
- War risk, including the risk of civil war, revolution, insurrection and civil unrest;
- Expropriation or acts or omissions by the government of the host country that are equivalent to expropriation;
- Failure to comply with a court judgement arising from a breach of contract by the government of the host country.
Where applicable, denial of justice may also be insured.
What else is covered?
Income – such as interest, dividends, royalties and the like – from the company in which you have invested or which you have financed is covered by the insurance up to a maximum amount per insurance year.
Duration of insurance.
The investment must be completed no later than five years after it begins. The insurance must be taken out for a minimum of three years – the premium is paid annually – and may run for up to fifteen years from the date the investment is completed. Green investments may run for up to twenty years from completion. A minimum term of four years applies to the insurance of loans or guarantees.
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 (95%). This means that you, as investor or financier, bear a 5% deductible. For green investments, the maximum covered percentage is 98%.
You pay the premium annually on the amount you, as an investor or financier, have indicated. The premium rate depends on two factors. You can choose to take out cover, independently of one another, for the risks of capital restrictions, war, expropriation or breach of contract. You pay a premium component for each insured risk. The second factor is the country: the higher the risk, the higher the premium. For example, the premium can range from 0.2% per annum for the most limited cover in a relatively low-risk country to 1.20% per annum for all risks in a very high-risk country (based on 95% cover). You can use the premium calculator to get a no-obligation estimate of the premium.
