| Claim: | [View Claim Details] |
| Our clients 2002 claims volume increased 23%, from 43 in 2001 to 53 in 2002 and marked the second consecutive year of claim volume increase. The dollar amount of claims decreased by 6% ($44,334,700 in 2001 to $41,681,401 in 2002), which is a sharp contrast to the 330% increase in 2001. The spread of countries experiencing claim activity increased from 13 in 2001 to 18 in 2002. Latin America experienced the largest increase in total number of claims (9 in 2001; 29 in 2002) and total number of countries where claims arose (7 in 2001; 12 in 2002). In North America, the United States witnessed a reduction in total claims, from 27 in 2001 to 17 in 2002, however the dollar value of those claims skyrocketed 198% to $21,180,832 from $7,100,000 in 2001. 2002 claim activity was highlighted by insurer approvals of $7.1mm, $4.2mm, and $3.3mm by GNCM; $1.7mm by the Export Import Bank; and $1.0mm by AIG. North America saw over $21mm in combined claim activity highlighted by an approvals of $6 mm (Euler), $2m (derivative products) and $900,000 (GNCM). | |
| Reschedulings: | [View Rescheduling Details] |
| Reschedulings in sheer numbers dropped for the second straight year. 2002 saw a 50% reduction in requests, just 13 compared to 26 in 2001. However, the fewer requests did not translate into lower amounts of distressed debt. 2002 reschedulings amounted to just over $20,000,000 compared to $27,100,000 in 2001. Latin America continued to lead the way as far as regions of the world where our clients found the need to restructure insured debt. | |
| Note: ** Reschedulings are situations that arise when a buyer, unable to pay his debt on time, requests further time to pay. The insured must seek and receive written approval from the insurer before formally agreeing with his customer. If the insurer agrees, the due date of the obligation is changed and coverage remains in place. Reschedulings are taken very seriously as they can be a prelude to a claim. |
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