What key trends do infrastructure investors face in 2019? For one, nationalist and populist movements are on the rise – creating an environment of heightened political risk, which investors may find hard to navigate. The result could weigh heavily on regulatory stability, as well as country risk or sovereign credit quality.
In tandem, environmental, social, and governance (ESG) matters are beginning to rise in prominence. Increasingly, investors are stepping up their focus in their investment mandates on companies that are seen as acting more sustainably.
Against this backdrop, the latest edition of Outlook keeps investors abreast of the most-read research from the past quarter – offering insights into how the Infrastructure segment is changing and, importantly, how it may yet evolve.
Outlook is available in PDF here
Moorgate compiles, edits and designs Infrastructure Finance Outlook.
Speaking to Reactions magazine, James Esdaile, Managing Director, BPL Global, provides a candid overview of the past and future of the credit and political risk insurance (CPRI) market.
According to Esdaile, the CPRI market has come a long way since he entered the business in 1997 – what was once a small market niche with approximately 10 players has become an attractive sector that boasts 50-60 primary insurers drawn by the market’s relatively high margin and the opportunity for diversification. As a result, the CPRI market now has a potential maximum line in the billions of dollar range and tenors of up to 20 years. Certainly, compared to other insurance business lines, the CPRI market still remains a niche market but growing awareness of the benefits and success in claims delivery renders it a valuable risk mitigation in its own right for both banks and corporate buyers.
The article also features excerpts from BPL Global’s inaugural Market Insight report, released earlier this year, which details the strides in claims and capacity within the CPRI sector since 1983 as based on market data and statistics from BPL Global’s own portfolio.
To access the magazine, please click here. The article is on pp. 26-27, but please note that a subscription is required to read it.
To read the full version of BPL Global’s Market Insight report, please click here.
Market capacity for credit and political risk insurance (CPRI) has grown by 30% since 2015 according to the first ever Market Insight report released by BPL Global, marking its 35th year as the leading CPRI broker.
Based on market statistics and BPL Global’s own portfolio, the report provides an analysis of the CPRI market’s capabilities, current worldwide risk exposures and a claims update, focusing in particular on claims activity since the global financial crisis.
“Our report shines a spotlight on the fact that appetite for the CPRI class is on an upwards trajectory – both in terms of capacity and tenors” says Sian Aspinall, Managing Director, BPL Global. “Furthermore, analysis of market data clearly shows that it is adapting its capabilities to match natural return on investment for areas such as project finance structures, providing coverage for up to 25 years. Also notable is the jump in capacity for non-trade related credit insurance to over US$1.5bn per risk – an area previously constrained by Lloyd’s regulatory requirements.”
Following outreach from Moorgate, the report was covered by: TXF, Insurance Insider, Asia Insurance Post, Insurance Shark, Strategic Risk Europe, Business Insurance, Insurance Insider (2), Luther Pendragon, Commercial Risk Europe, Corporate Risk & Insurance, Global Trade, Credit Insurance News and The Treasurer.
To download a copy of the full report, please click here.
In the most recent edition of GTR’s Women in Trade Finance series, Sanne Wass talks to Sian Aspinall, BPL Global’s Managing Director, about her career success and how the industry can best tackle gender bias.
Having worked within credit and political risk insurance for almost 30 years – starting as a political risk broker at Investment Insurance International – Aspinall carved out an impressive reputation within a market renowned for its ‘macho culture’.
After quitting her job to focus on achieving a work-life balance in 2007, BPL Global asked Aspinall to join them. “They approached me knowing they would have to offer a job on a flexible basis, otherwise I wouldn’t be able to do it,” she says. An understanding and flexible employer, she explains, makes a massive difference. In late 2015, Aspinall took on the of role managing director.
Read the full article here.
In a commentary article for Trade and Forfaiting Review, James Esdaile, managing director, BPL Global, explains that heightened political instability and banks’ need to achieve capital relief has caused the specialist Credit and Political Risk insurance (CPRI) to grow exponentially in recent decades.
However a lack of cooperation between insurers, as well as the traditional manner of confidentiality the market carries, has caused the CPRI market to remain widely under the rug. Esdaile argues that through collective action, insurers can remain confidential and safeguard their franchise, yet still bring light to issues they all face such as regulation and other threats to the business. Other areas that could benefit from market cooperation are technological integration and product development.
By giving the CPRI market a coordinated voice, CPRI insurers can develop their own influence and help obligors become aware of the size and impact the market has.
The full article can be read here.
Anthony Palmer, Deputy Chairman of BPL Global, joined the credit and political risk insurance (CPRI) market in 1975 a time when, in most countries, it often comprised of just one export credit agency (ECA) and one domestic insurer. The Lloyd’s market offered limited pure political risk cover, while export cover against pre-shipment risks was in its infancy.
Things have come a long way. In a feature-length interview with TXF magazine, Anthony discusses establishing BPL Global in 1983, and the key events that have shaped the CPRI market’s development: Lloyd’s regulatory changes, insurance market cycles and geo-political events, from the fall of the Soviet Union to the Asian crisis. While the interview covers change, it also looks to the future, with Anthony describing BPL Global’s commitment to remaining an independent, employee-owned, specialist broker.
Read the full interview here.
BPL Global has appointed Cindy Gunawan as part of its ongoing expansion in the Asia-Pacific region.
Formerly a broker specialising in trade finance distribution at Standard Chartered, Gunawan joins at a time of impressive growth for the credit and political risk insurance (CPRI) broker. Indeed, in response to growing demand for CPRI, BPL Global has increased its headcount by 10% over the past year across Singapore, Hong Kong and London.
Peter Gilbert, Chief Executive of the company’s Singapore subsidiary comments: “We are delighted to announce Cindy’s appointment as we continue to develop the CPRI market in Asia. In Singapore, we have already this year witnessed increased demand for insurance from clients engaged in international trade, investment and lending – and are scaling up to cope with this.”
Following Moorgate’s outreach, the news was covered by Intelligent Insurer, GTR, TFR and TXF.
To mark the 15th anniversary of their Paris subsidiary, BPL Global celebrated at the British Ambassador’s grandiose residence in the French capital.
Joined by Trade and Forfaiting Review along with leading figures in the trade finance, and credit and political risk insurance (CPRI) industries, BPL Global’s leaders highlighted the key pressures for the market today: the UK’s upcoming referendum on EU membership and the growing anti-trade movement.
Regarding the UK’s potential withdrawal from the EU, Charles Berry, the specialist insurance broker’s chairman, stressed that “even if the UK opts out, BPL Global will stay in. We will do whatever is necessary to service our clients, not only in France, but also in Germany, Italy and Spain.”
Berry also championed the CPRI market as an unquestionable good for global economic development. Berry added, “BPL Global will remain loyal to the principles supporting international trade. I have every confidence that we will be doing more and better business for the next 15 years and beyond. Minor obstacles created by political shifts will not change that.”
To read the full article, please click here.
The past year has seen a host of new political and economic developments for Croatia. A business-friendly government, a supportive banking sector, and a return to economic growth have all boosted the outlook for import and export trade. According to Nicolas Adamovich, President of the German-Croatian Chamber of Industry and Commerce, and Senior Representative at Commerzbank’s Zagreb office, such developments offer prospects on the horizon for both international exporters and Croatian companies.
Writing for leading export magazine, European Business, Adamovich notes that challenges remain to trade however – including low private-sector competitiveness, a bumpy integration into the European common market, and a fall in vital foreign direct investment (FDI) flows. He argues that, with these overcome, Croatia’s trade can reach its full capacity.
Please read the article online here.
S&P’s recent research on how Spain’s turbulent political landscape is impacting the region’s infrastructure development is explored in an opinion article for specialist infrastructure publication InfraNews. Despite some promising developments for the sector in 2015 due to overall economic growth in Spain, a history of poor project management, combined with the recent general election result of a hung parliament, have raised serious questions over the future of infrastructure investment. The article highlights the key consequences of past mistakes and how Spain’s political parties intend to move projects forward, albeit with differing priorities. Certainly, until a unified government is confirmed, it is expected uncertainties will linger.
InfraNews dedicated a full page article to S&P’s findings, which can be viewed here (behind a paywall).