Euler Hermes’ industry expertise allows us to provide a wide range of customized solutions for the energy sector: Trade Credit Insurance, Transactional Cover Unit (TCU), and Excess of Loss (XoL).
Trade Credit Insurance
Euler Hermes’ core offering protects companies’ receivables from unforeseen buyer defaults both in the U.S. and abroad. With a credit insurance policy in place, companies from all segments of the energy supply chain can aggressively grow sales to new and existing buyers without increasing risk on their balance sheet.
Credit insurance helps you:
- Safely extend more credit to new and existing counterparties
- Provide market favorable alternatives to letters of credit to maximize commercial opportunities
- Provide an extra layer of support to credit teams
Transactional Cover Unit (TCU)
Euler Hermes’ TCU safeguards investments in foreign markets against unpredictable losses due to specified political risk perils. This type of insurance extends peace of mind against major receivables losses that may occur due to high-impact events such as contract interruption, non-payment, confiscation, political violence, etc. This coverage enables energy companies to take advantage of attractive investment, financing, and trade opportunities in international markets.
- Pressure relief of financial institutions’ country lines
- Capital relief for financial institutions
- Balance sheet protection for investors against political uncertainty
- Typically more favorable lending terms for investors and exporters
Excess of Loss (XoL)
Energy companies typically have mature and robust internal credit departments that can handle most credit underwriting scenarios. But for certain large exposures, extra protection against extraordinary, unpredictable loss is critical for the balance sheet. That’s where an XoL policy comes in. XoL provides long-term, non-cancellable limits and a program designed for a company’s specific needs. With the ability to manage credit risk through a tailored program and a dedicated team of strategic risk underwriters, energy companies can improve their balance sheet efficiency, which translates into safe and successful growth.
- Large credit and country limits
- Group buyer limits
- High levels of discretionary credit limit authority
- An experienced global solutions team
- The proven infrastructure of Euler Hermes and Allianz