Credit risk appetite for emerging markets - August 2012

Feature | 21 August 2012
Insurance

The table set out below is the pricing list based on indications from insurers for the range of rates per annum that they would provide for comprehensive borrower non-payment insurance in each of the countries listed, for an average tenor of 12 months. The entries in bold are the ones that have changed since we last did this in June 2012. All of the entries in black are ones that have not changed since the last time. Feedback from the market is as follows:

  • Appetite for Russia with pricing from 0.75% to 3% is capacity driven
  • Pricings for China at 0.8% to 1.75% are capacity driven
  • Appetite for India with pricing from 0.6% to 1.75% is capacity driven
  • Although pricing for UAE is 0.75% to 2.5%, Dubai is more expensive

Political Risk & Structured Credit Practice, Marsh Ltd


 

Country       Rate range (pa)
    From To
           
           
Russia     0.75   3.00
Ukraine     3.00   5.00
Kazakhstan     1.75   3.50
Belarus     3.75   5.00
Turkey     1.00   1.90
China     0.80   1.75
Indonesia     1.00   2.00
S Korea     0.40   1.00
Libya     selectively   selectively
Algeria     0.75   1.85
Egypt     1.75   4.00
Ghana     1.75   3.50
Ivory Coast     selectively   selectively
Sudan     Off cover   Off cover
Nigeria     1.75   5.00
Kenya     1.75   3.50
Venezuela     selectively   selectively
Ecuador     selectively   selectively
Colombia     0.60   2.00
Brazil     0.50   1.50
Pakistan     2.25   5.00
India     0.60   1.75
Bangladesh     2.25   3.50
Sri Lanka     1.50   3.00
Vietnam     1.50   3.25
Argentina     3.00   5.00
Mexico     0.50   2.00
UAE     0.70   2.50
Thailand     0.75   2.00
Azerbaijan     1.50   4.00
Mongolia     2.50   4.50

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