China Export Credit Insurance Corp. First-Half Growth 51%

Posted on July 26th, 2011 by Rory Rawson | Tags: Corp, Credit Insurance, Credit Insurance Corp, Insurance Corp

China Export & Credit Insurance Corp. [Sinosure] reported accumulated underwriting income of US$129.13 billion, up 51% year-on-year for the first half of 2011, attributed to continuing domestic economic growth and market expansion to emerging markets.

Export credit insurance underwriting income rose 46.1% to US$106.5 billion. Of that, short-term export credit insurance underwrote US$103.81 billion, up 52.6%; and domestic trading credit insurance underwrote 61.03 billion yuan (US$9.5 billion), up 9.4% year-on-year. Mid- to long-term export credit insurance contributed US$2.69 billion and overseas investment insurance underwrote US$12.64 billion;.

In the first six months, China’s export credit insurance expanded its coverage, covering 12.2% of the country’s total exports, up 10.4% from the correspondent period of 2010, said Beijing-based Sinosure, a state-owned export credit insurer.

The company said it supported the development of China’s overseas trade by increasing the underwriting amount of its short-term export credit insurance by 52.3% to US$84.98 billion, particularly for the industries of engineering, high technology and automotives.

In the first six months, Sinosure supported traders expanding to emerging markets, including underwriting in Peru, Slovakia, South Korea, Argentina, Thailand and Brazil for the first time, with a total amount of US$1.56 billion, said the company. Sinosure added its first-half short-term export credit insurance covering emerging markets and relatively longer-term open accounts businesses amounted to US$76.28 billion, accounting for 73.5% of the country’s underwriting total.

Sinosure said it also increased its cooperation with Banks during the period, supporting corporate finance of 108.55 billion yuan. Of that, 104.33 billion yuan were covered under export credit insurance.

The insurer said it supported US$2.65 billion for the export trading of small to medium-size enterprises in first half.

Sinosure paid accumulated claims of US$310 million. Of that, US$150 million was paid through mid- to long-term export credit insurance, and US$160 million were paid through short-term export credit insurance.

The company said it paid out US$410 million for insurance claims covering 23 Chinese companies that were affected by civil unrest in Libya.

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