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Cross-border equity investors and project sponsors purchase PRI to protect their investments against financial losses due to unexpected political events such as expropriatory acts, restrictions on repatriation of dividends or acts of political violence. Policies can be issued either in respect of individual equity investments (or acquisitions) or to cover investments in a number of different countries. Either new or existing investments can be insured. The “multi-country” form of cover is particularly attractive to multinational companies with a portfolio of exposures who want to be protected against losses in all of those markets. This form of coverage is typically much more cost-effective than insuring the exposures separately. The premium payable can be further reduced by the use of deductibles and other risk retention mechanisms. This type of policy could cover an existing portfolio, while allowing for new investments to be added. Case Studies:
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