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ippon E port and Investment Insurance
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Corporate

hilosophy

As t e public entity responsible or trade insurance
our mission is to deliver peace o mind to ourcustomers and contribute to t eo2apanese overseas businessealt y development

Action Guideline
e alert to c anges and meet customer needs wit
pro essionalism and speciali ed expertisen ance underwriting capacity and capability w ile
maintaining a strong ris management culture
Respect diversity and wor as a team to allow ourorgani ation to ac ieve its best3

essa e f om t e

ai man an

Nippon xport and Investment Insurance
C airman and C O

Atsuo Kuroda

As we publish this annual report, I would like to takethis opportunity to express my sincere gratitude to allof you for your patronage and extensive support ofippon xport and Investment Insurance (I).
In
2 2 , the global economy saw a gradual
recovery amidst the continuing turbulence caused by
the CO ID
pandemic. eanwhile, the military
aggression by ussia against kraine which started
in ebruary 2 22 has made the world hold its breath
for the rising geopolitical risk said to be the largest
since the end of the Coldar, leaving us to facean extremely uncertain future.
nder such global landscape,I has made its
utmost e orts to bolster Japanese companies in theiroverseas business development through prompt andadequate payment of claims and active underwriting of
insurance. In
2 2 , when an increased number ofoverseas investees suspended their businesses due tothe CO ID
pandemic, the amount of claims paid
totaled about J
6 .2 billion recording the second
largest amount since the foundation of
I. Thenumber of trade and investment Insurance users
reached 33 companies in
2 2 , exceeding thetarget ofcompanies set in ouredium termusiness lan for two consecutive years for the ﬁrst
time. Through its trade and investment insurance,Iwill continue to take su cient risks to cover events
associated with the CO ID
catastrophe, thekraine crisis, and wars, civil con icts, natural disasters,
pandemics and epidemics that may arise around theworld.
The globali ation that gained momentum after theend of the Cold ar where people, goods and money
move beyond national borders, is now said to be
shifting priority from e ciency, such as global optimal
procurement, to resilience with risk reduction taken
into consideration. Corporations are transforming their
management strategy to just in case from just intime.
hen it comes to just in case, we believe thatI s trade and investment insurance can serve its

4turn. To address the changes in globali ation,
I willcontinue to assist Japanese companies via trade andinvestment insurance allowing them to undertake theirinternational business activities with a sense of
security. And we will keep progressing toward ourthree goals increasing the number of trade andinvestment insurance users, enhancing the trade andinvestment insurance system and strengthening
international cooperation.
Increasing the number of trade and investment
insurance users continues to be the biggest challengefor
I with a limited number of employees and low
proﬁle. Our ongoing e orts include increasing thenumber of users in small and medium si ed businesses
by leveraging social media, simplifying procedures for
agricultural, forestry and ﬁshery product exporters
upon their use of insurance, assuming reinsurance forOverseas Investment Insurance from private insurers inJapan, and enhancing collaboration with primary
non life insurance companies in fronting scheme.
nder theAD Initiative established in
2 2 , weare actively facilitating development of projects that
contribute to expanding Japanese businesses,
reinforcing relationships with important countries, andsolving social issues.
In relation to our goal of enhancing the trade andinvestment insurance system, Trade and Investment
Insurance Act was revised by the Japanese
government for the ﬁrst time in seven years in April
2 22. At least thirteen system reforms are planned toaddress the recent needs of the customers, including
reinforcement of CO ID
pandemic response andsupply chain resilience.
I is currently proceeding todevelop new products and to adjust our system in linewith the revised Trade and Investment Insurance Act.
e are also working to organi e a framework to
support next generation technologies and startups.
In pursuit of strengthening international cooperation,
I is reinforcing alliance with resource supplying
countries including the conclusion of
OC withuwait etroleum Corporation andO with theublic Investment und of audi Arabia.
e are also
advancing our support for Japanese businesses fortheir expansion into Africa by signing O s with The
astern and outhern African Trade and Developmentank (TD ) and other entities.
In
2 2 ,I had identiﬁed its violation of theTrade and Investment Insurance Act in its managementof foreign bonds and incorrect collection of insurance
premiums, and since we have worked to strictly andthoroughly
implement
measurestoprevent
recurrence. In line with the newedium termusiness lan starting this ﬁscal year which marks theﬁfth year after
I became a special stock company,
we will continue to reinforce our governance with allof our o cers and employees coming together as ateam while placing priority on customer ﬁrst approachto provide a sense of security to our customers as apublic institution.
As
I moves on to fulﬁll its mission and achieve its
goals, we would like to extend our deep appreciation
for your continued understanding and support.

Contents
o o ate hiloso hction
essa e f om the hai man anenin
ticlesui eline

Responses to t e CO ID
andemic
e rade and Investment Insurance Act was revised
Approac es or Carbon Neutrality
Rising Geopolitical Ris s and N I s Response
O ICS Fostering Diverse uman Capital and Supporting
eir Active Careers
O ICS
at made you consider t e use o trade and investment insurance

I Re ieof e fo manceer ormance ig lig ts
Review o er ormanceO ICS Organi ation or conomic Co operation and Development (O CD)I

cti ities

ain International Activities
or ing oward a Sustainable Society
Cooperation wit Overseas Organi ations
Supporting apanese S
s in t eir Overseas usiness Development
ro ects Covered by N I InsuranceS
xports Covered by N I Insurance

Insu anceo uctsrade and Investment Insurance
ow It or s
Insurance roducts to Support our usinessInsurance Application rocess
O ICS n ancement o oan Insurance or Green Innovation

out

I an

ani ationale ationro le o N I
usiness lan
usiness Operation and anagement System
Organi ation C art
O ces
O ICS ublicity Activities or rade and Investment Insurance

FY2021 Financial Results
F
Financial Review
Financial Statements etc

igures in thisAnnual eport

In principle, ﬁgures in this report are rounded to the nearest unit.
Therefore, the sum of individual ﬁgures may deviate from the sum presented.
igures that fall below a unit as a result of rounding are indicated asif there is no corresponding ﬁgure,is indicated.
igures in the trade and investment insurance business are on a ﬁscal period basis unless otherwise noted.

5

enin

ticle 1esponses to the C
andemic

ID-

Setting out Three asic olicies and Three ew esponses as initiatives of trade andinvestment insurance during the C
IDpandemic, E I worked on its ongoing e orts in
202 , continuing from
2020.
In
202 , insurance claims paid in relation to the C
IDpandemic was J.2 billion,
and the total amount of claims paid including other non-C
ID related events was J.2billion, recording the second largest amount since the foundation of E I.

h ee Basic olicies
Is einclu e1o t insu ance in estment insu ance an loan insu ance
I 1 elate losses ithin the sco e of co e a e.

xport insurance Covers non payments arising rom ban ruptcies o t e contract counterparty
payment arrears o t ree mont s or more by t e contract counterparty
import restrictions disruption in transportation suspension o oreign
currency trans er or ot er events caused by t e impact o CO ID
Investment insurance Covers business suspensions or one mont or more caused by t e impact
o CO IDoan insurance Covers delayed repayments o t ree mont s or more (except w en t ere
is a mutual agreement on resc eduling )I ta es ne

2is s in su

o respond to insured events involving t e increasingly complex supply c ains N I ma es
claims payment or investment insurance w en business is suspended by t e investee or one
mont or more as a result o troubles caused by t e impact o CO ID
in production o its
parts suppliers or in sales o its products t roug its distributors even w en t ey are incountries di erent rom t e country in w ic t e investee is locatedI o e s insu ance fo
o ects in count ies o l3
6l chain.

oth ne a lications an e istin in estmenti e e en in the face of theI 1 an emic.

In order to support t e ows o oreign trade investment and loan o apanese companies
N I continues to provide export insurance investment insurance and loan insurance globallyor new applications as well as coverage or existing investment pro ects Underwritten
amount oxport Credit Insurance in F
increased by approximately
times
compared to t e previous year

1

Suo t foocu ement ofo in ca itala anese o e seas su si ia ies

2

ontinueh ee eSu1o ts foRes onses
o t fo3

Reinfo cin assistance Su o t fo e o t
fo im o t of me ical
a anese o e seassu liessu si ia ies to thi
count ies

ocu ement ofo in ca itala anese o e seas su si ia ies

o address t e worsening cas
ows o apanese overseas subsidiaries and to prevent
disruptions in t e existing overseas supply c ains N I elps t ose overseas subsidiaries
raise t eir wor ing capital t roug loan insurance
Implementation o measures to support apanese overseas subsidiaries in t eir procuremento wor ing capital as been extended until arc
and N I as provided support
or a total o more t an
billionReinfo cin assistance fo im o t of me ical su

2

Amid t e global s ortage o medical related supplies many o t e oreign suppliers o surgicalmas s gloves protective clot ing and ot er medical items ave as ed or prepayments andt ere were ris s o prepayments not being re unded i t e goods were not imported oaddress t e situation N I revised t e regulations in ay
to cover commercial ris s ocompanies wit poor credit standing in repayment Import Insurance w ic previously ad
not covered suc ris s In t is way N I as indirectly assisted t e procurement o
medical related supplies by t e apanese government

Su

3

lies

o t fo eota anese o e seas su si ia ies to thi

count ies

In Singapore ong ong
ailand ietnam and t e United ingdom N I as developed asc eme in w ic subsidiaries o apanese non li e insurers underwrite insurance and t en
N I assumes reinsurance ( ronting) rom t ose insurers Against t e bac drop o worldwide
outbrea o t e CO ID
pandemic ris s associated wit export by not only apanesecompanies but also by t eir overseas subsidiaries to t ird countries ave risen s arply andneeds or ronting ave also increased articularly in suc situation as a governmental
nancial institution N I as been stably providing insurance to support apanese overseas
subsidiaries so t at t ey can carry on t eir business activities wit a sense o security evenduring t e CO ID
pandemic In F
N I extended insurance o aboutbilliont roug ronting w ic is around t ree times t at o Flaims ai an Re ision of thea e an In estment Insu ance ct

ecause t e impact o t e CO ID
pandemic lasted longer t an initially expected claims paid or CO ID
related events in F
and F
toget er totaled
billion or a sum ocases Claims paid or
CO ID
related events in F
increased compared to F
amounting tobillion orcases
and t e impact o t e pandemic ad not disappeared as o t e end o F
As a result t e total amount oclaims paid in F
reac edbillion recording t e second largest amount since t e oundation o N I
Committing to its mission as a governmental insurance institution N I continues to pay insurance claims in a
prompt and smoot manner assisting apanese companies to continue t eir international businesses wit a senseo security in an unstable environment
eanw ile under t e existing legal regulations t ere were cases were losses arising out o additional costs due
to impact o in ectious diseases including CO ID
could not be covered o rein orce N I s responses to t e
CO ID
pandemic rade and Investment Insurance Act was revised or t e rst time in seven years and went
into e ect in uly(For details on t e revision o t e rade and Investment Act please re er to t e next page )

7

enin

ticle 2The Trade and Investment
Insurance Act was revised
The Trade and Investment Insurance Act was revised for the rst time in seven years to reﬂectchanges in the environment surrounding overseas transactions by Japanese companies, andput into force in July 2022. ased on the revised act, E I provides a better environment
which enables our customers to e pand their global business in a more stable manner.

Res onses e ectin theI1an emic

e cover expenses newly incurred due to in ectious diseases suc as CO ID
under xport Credit
Insurance etc w ic covers expenses to be newly borne a ter t e conclusion o t e insurance
contract
Speci c e ample
lant construction work has been suspended due to infectious disease outbreaks, resulting
in the incurrence of employee evacuation e penses and other costs
a anesecom anTechnologies and Country A
workforce provided
oss

Additionalcosts incurred

Infectious
isease s ea in

Fo ei ncom anConstruction
work suspended

Speci c e ample 2 Shipment has been deferred due to infectious disease outbreaks, resulting in the
incurrence of domestic freight storage fees and other costs
Country A

E porta anesecom anoss

Additionalcosts incurred

Infectious
isease s ea in

Fo ei ncom anIn addition to t e above
For losses due to ailure to s ip goods we add a delay in t e per ormance o payment obligations inprior transactions wit t e counterparty to commercial ris events under xport Credit Insurance etc
e add a decision to commence corporate reorgani ation proceeding and ot er legal ban ruptcy
proceedings o t e counterparty in addition to a decision to commence ban ruptcy proceeding ot e counterparty to commercial ris events under xport Credit Insurance uyer s Credit Insurance
Overseas Investment Insurance and Overseas Untied oan Insurance etc

Re isions to st en then su

l chains

In order to cover business ris s o t e entire global supply c ain we expand t e scope o coverage
under Overseas Investment Insurance and repayment Import Insurance
e seas In estment Insu ancee a ment Im o t Insu ance

losses of in i ect in estees to the co e a e
e c o ve r l os s es i nc ur r ed b y a pa nesecompanies resulting rom t e losses oreinvestees and ot er indirect investees
due to events t atave ta en placeoutside apan
a anesecom ant ansactions inhich oo s a e to e
eli e e to thi
count ies to the co e a e
e cover losses resulting rom ailure to receive
prepayments because o t e non delivery o goodsin transactions in w ic goods are to be delivered
to t ird countries in addition to transactions in
w ic goods are to be imported to apanoss

a anesecom anInvestment
Fo ei ncom anama eRein estee

8Rein estee

oods prices
prepaid

repayment
unrefundable

oods undeliverable
om an inom an incount
count B

Res onses to enhance inte national coo e ation
N

I invests in a oreign company t at engages in t e trade and investment insurance businesse cover loans by international organi ations oreign governments etc and borrowings byinternational organi ations (under uyer s Credit Insurance and Overseas Untied oan Insurance)
Bu e se it Insu ance ane seasntie

oan Insu ance

Add international organi ations and foreign
governments to lenders
Bo o eoan, etc.

en e

the

Add international organi ations to borrowers

oan, etc.

Inte nationalo ani ations
fo ei no e nments etc.
in a ttion tocomme cial an s

Bo o eInte nationalo ani ations ina ition tocomme cial an s
an fo ei no e nments etc.

en e

es onses e ectin the nee s of use se will establis new swap transaction insurance and letter o credit con rmation insurance
S at ansaction insu ance

ette of c e it con

e will cover losses incurred by nancial institutions
due to non payment including o settlement money
resulting rom t e cancellation o swap transactions

Financial
institution

Interest swap
transaction

e will cover losses incurred by ban s con rmingBan
con mins

on-payment ofsettlement moneyon cancellation, etc.

Financial
institution

Cs

C con rmation
contract

Fo ei n o ect
com anuyer s Credit Insurance orverseas ntied oan Insurance

mation insu anceBanissuins
on-payment
equest for
issuing Cs

oan

o te

equest for issuingCs

Im o teIn addition to t e above
e will rein orce our nancial base by adding t e olding o negotiable certi cates o deposit to oursurplus und management met ods as well as by diversi ying our investment met ods

9

enin

ticle 3

Approaches for Carbon
Inc easen in of neo ts to asuschie ino t fo the mal coalo eaeutralityonene ationeut alito ectsAs agreed at t e G Summit in une
N I as ended t e provision o insurance or unabatedinternational coal power generation as o t e end o DecemberN

ont i ution th ou h

Initiati e Fo

etailsefe to the ne ta e.

I is eig tening t e ollowing e orts towards ac ieving global carbon neutrality or t e long term

nhancement of oan Insu ance fo

1
2

een Inno ation

it t e intent to urt er promote t e use o existing tec nologies o renewable energy
N I as started to apply pre erential treatment or credit ris premium o oan Insurance
or Green Innovation w ic covers pro ects in t e elds o environmental protection andclimate c ange prevention (For details re er to O ICS on page)ten in su

o t fo netechnolo ies

o accomplis carbon neutrality in a long term basis it is essential to prompt
commerciali ation o new tec nologies N I is deepening cooperation wit t e relevant
domestic and international organi ations to bolster underta ings in t ose elds

St en thenin ties ith fo ei n o e nments anani ate nancial institutions3

coo ateso ac ieve carbon neutrality in t e developing and emerging countries it is essential to mobili et e private capital N I is strengt ening cooperation wit related partners and is wor ing to ul ll
its role as a catalyst in support o renewable energy deployment and energy transition
As part o t e e ort N I as signed a emoranda o Cooperation ( OCs) wit t e inistryo Finance o Saudi Arabia and uwait etroleum Corporation ( C)emoranda oUnderstanding ( OUs) on cooperation wit
e astern and Sout ern A rican rade andDevelopment an ( D ) ublic Investment Fund ( IF) o Saudi Arabia t e Indonesianstate owned electricity company
N ( ersero) and ot ers
roug t e ramewor o t e
OCs andOUs N I is studying on providing speci c support to increase business
opportunities or apanese companies in eac country and region and to promotedecarboni ation in t e energy eld

oaches to a

s

et

e o

20 0

In line wit t e declaration made by t e apanese government to ac ieve carbon neutrality by
N I is proceeding wit t e ollowing approac es to contribute to t e ul lling o t e declared target.Studying on information disclosure based on the TC D recommendations.
2.Implementing measures to reduce greenhouse gas associated with the operation of
trade and investment insurance business.
. urchasing of Japanese and foreign green bonds.
10

sta lishment of

Initiati e

In December
N I announced t e AD Initiative to respond to t e business environment wit
and a ter t e Covid
is initiative is intended to actively promote t e underwriting o pro ects wit
a ocus on contributing to global carbon neutrality solving social issues and ac ieving t e SDGs Undert is initiative we aim to underwrite insurance o total value otrillion by t e end o scal
w ile diversi ying our unding sources not only rom traditional capital providers but also rom
institutional investors etc
N I as underwritten six pro ects in line wit
ollowing is t e outlines o t e latest ones

oan Facilit fo1

u ait et oleumoeo ation

Issue

the

a

Re u lic oftFunds raised by t e Samurai bond are going to be used to nance t e government
subsidies to promote t e replacement or conversion o conventional ig emission
gasoline ve icles cars taxies and buses to dual uel ve icles using gasoline andnatural gas w ic is underta en by t e gyptian government as part o measures to
e unds rom t e Samurai bond are also going to be used
reduce CO emissions
to nance t e cost or procurement o vaccine to combat CO ID
pandemic in t e
countrylease re er to pageoan fo3

AD Initiative since t e announcement

For apan uwait is one o t e largest exporters o crude oil as well as one o t emost important countries in ensuring energy security
e loan acility to
C will be
used or supporting uwait s oil businesses and e orts or advancement o
decarboni ation
is is expected to contribute to supplying t e global oil mar etstabili ing oil prices and advancing uwait s decarboni ation

Samu ai Bon2t e

f e im anI

1

accine anealthca e Finance Facilit

e loan acility will be mainly used to ensure a stable procurement o t e vaccines
in A rica
is loan also employs t e in rastructure und sc eme announced by N I
in December
leveraging private capital rom more t anapaneseinstitutional investors suc as ban s and li e insurance companies
lease re er to page

11

enin

ising

Rise ofticle 4eopolitical isks andE I s esponse

eo olitical Ris s

thio ia

In November
a civil war erupted in t iopia Alt oug t e completion omilitary operation was once announced sporadic g ting continued to intensi y t esituation leading t e t iopian government to declare a nationwide state oemergency in November
e state o emergency was li ted in February
and a cease re was reac ed in arc
yet peace is still not in sig t
e nationis at a ris o resurging con ict and is su ering rom a c ronic s ortage o oreign
currencies

anma

In February
a coup too place inyanmarolitical ris
as escalated
immensely wit a rapid deterioration o security situation in t e country once called
Asia s last rontier w ic many apanese companies ave made inroads into
yanmar is also experiencing serious s ortages o oreign currencies due toeconomic sanctions imposed by t e estern countries Ris s associated wit oreign
exc ange and remittance as become prominent a ter restrictions in oreign currency
was rein orced in April

Russiaaine

On February
Russia launc ed military aggression against U raine
Following t e incident countries ave imposed economic sanctions against Russia
including apan w ic banned exports o speci ed goods
e apanese government
issued an evacuation advisory or all o U raine and countries including apan areproviding umanitarian assistance and ot er supports to t e nation

I s Res onse

N I s insurance products are designed to cover country ris s including losses resulting rom inability
to export goods and inability to collect receivables or goods exported due to war revolution and civil
war and losses incurred as a result o investees being orced to discontinue or suspend t eir business
operations due to war nationali ation in ringements o rig ts economic sanctions and ot er reasons

hen ecei a les cannot ecollecte
ue to olitical is .
hen coverage ofthe insurance product.

a imum 100 of the eamount is co e e .

o t cont act

is selected for xport Credit Insurance. Condition varies depending on

hen o e seas in estees iscontinueo sus en thei usiness o e ations
ue to olitical is .

a imum 100 of the in estment
amount is co e e .

Covers your equity interest at a depreciated net asset book value of the investee.
Re ecting t e recent rise o geopolitical ris s we ave been receiving an increasing number o in uiries
in relation to t e insured events and payment o claims N I is committed to listen to your situationand to respond to eac case wit sincerity

12

S

ostering Diverse uman Capital andSupporting Their Active Careers

omotini e sitN I commits to Respect diversity and wor as a team to allow our organi ation to ac ieve its best
Guideline and is actively promoting diversity

Su
an

o tin
omen s cti e a tici ation
ancement in the olacenhancin Su

N I positions recruiting and ostering o emale
employees and t eir promotion to managerial
positions as one o its important personnel strategies
and is developing an environment in w ic eac andevery emale employee can play a more active role
N I started assigning emale employees to its
overseas o ices in F
ast year we assigned
emale employee to international organi ation
expanding women s active contribution abroadt the en of FY2021
Ratio of omen inmana e ial ositions

Ratio of omen in theo fo ce2 .

0. 2

Ratio of omen assi ne
fo o e seas osts

a ee Suoife Balance

N I is en ancing support system or wor li ebalance t at allows its employees to continue wor ing
during t eir li e events suc as pregnancy c ildbirt
and c ildcare or amily caree are wor ing to create a pleasant wor environmentby en ancing intangible elements suc as setting up
bot internal and external consultation windows and aealt care room attended by a clinical psyc ot erapist
e are also encouraging our employees to ta e t eir
annual paid leaves

FY2021 esults
Ratio of em lo ees etu nin
to o afte chil ca e lea e

FY2021 esults
e centa e of annualm lo ees inmana e ial ositions

FY2021 esults

e clu in secon eo t foin its Actionai

lea e use
m lo ees in
non mana e ial ositions

em lo eeso t S stem

ile ocusing to acilitate employees in mastering t eir respective tas s and in ac uiring expertise and experienceN I provides its employees wit opportunities in obtaining a wide range o nowledge and experience in t ecompany s operation across t e departments wit out leaning toward a particular eld

a ee Sta es

STA E
Training and Capacity

STA E
Career Achievementuilding(

STA E

anagement evel)

Assist each employee s career development through periodical interviews and meetingsew employee training
E ternal trainee
Internal traineeevel-based training

usiness training

asic skill training
uali cation support system

ainin

o

ams

evel-based Training
asic training or N I employees
Step up training
Capacity building program
eaders ip training or young
employees
Followers ip training or mid level
employees
raining or manager candidates
raining or newly appointed
group leaders
raining or employees in managerial
positionsainoCareer design training

Advanced training
ersonal development training
E ecutive development training

ams

Trainee rograms
Internal trainee

asic Skill Training

Advanced Training

asic s ill trainingo provide an opportunity or sel
development employees are assigned towor at departments ot er t an t eir own
or around a wee every once a year

oo eeping (Grade ) Finance ( an ing
ro ciency est) Gradee apan usinessaw xamination (Grade ) I
assport tradingbusiness online training etc

xternal traineeo o er a c ance to broaden t eir
perspectives outside o N I employees
are assigned to wor at externalorgani ations on secondment bot in
apan and abroad

Advanced training
oo eeping (Grades) securities analyst
Finance ( an ing ro ciency est) Grades
e apan usiness aw xamination (Grades)ro ciency est in rading usiness (Grades C
and A) etc

uali cation Acquisition
ersonal Development
Support or ac uiring uali cation

awyer certi ed public
accountant certi ed tax
accountant actuaryabor and Social Security
Attorney etc

ersonal development training

anguage training
graduate business sc ool etc

13S

hat made you consider the use of
trade and investment insurance
Case

1
Case

2
Case

3
Case

4
Case

5
Case

6
Case

7
Case

8

I am thinking of launching business with new buyers.
I am thinking of making new investment andor obtaining nancing.
The amount of e port transactions with e isting customers
is increasing.
I am thinking of e porting products with a long
pre-shipment period and or di culty in resale.
The payment method has changed from payment up front
to post-shipment remittance.
I would like to hedge risk in transactions related tocountries with high country risks.
I would like to prepare for new risks including theC
IDpandemic.
I would like to use it as a bargaining chip in negotiations
with customers requesting a deferred payment contract.

Trade and investment insurance is useful when you are
faced with new and changing business conditions.

14

N

I Review oer ormance
Review oer ormanceig lig ts

er ormance

O ICS

15

Annual Report FY 20 21

I Re ieofe fo mancee fo mance

F

o t

i

li

en s

ts

Japan s exports in
2 2 were approximately J. trillion, an increase of approximately 6.4 trillion (up23.6 year on year) due to an increase in exports of steel products and motor vehicles. This marked a record highfor the last ﬁve years.
ooking at the results by country and region, exports to Asia were approximately J
4 . trillion (up 22.
year
on year), of which China accounted for approximately J.3 trillion (up 4.
year on year). xports to thewere approximately J.4 trillion (up 23.
year on year). xports to thewere approximately J. trillion(up 24.
year on year). xports to the iddle ast were approximately J
2. trillion (up.
year on year).
illions ofeference Japan s exports

F
otal xports

F,22 ,24ear on ear C ange ( )

,

,

,

.

,

.

6 ,4

2

,4

6.

ource Tradea e an

F

F

F

en

,

,66

.4

23.6

inistry of

inancetatistics of Japan,n estment nsu ance usiness

1

1

Outstanding
Borrowings:
JPY 0

Premium income
Recoveries and other income
Insurance claims paid
Borrowings

Peak of
Insurance
Claims Paid:
JPY 341.9
billionPeak of
Outstanding
Borrowings:
JPY688.6
billion（Billions of Yen）
Fiscal Year

1

Premium
income.

Recoveries andother income

Insurance
claims paid

Borrowings

1

.

.1 1.

. 1 . 1 .
.

.

.

1

1

1

1

1

1

1

1

1

.

1.

.

.

.

.

.

.1

.

.

.

.

.

.

1.

.

.

.

.

.

.

.

.

.

.

.

1.

.

.

1.

.

.

.

.

.

.

. 111.

.

.

. 1 1. 1 .

1.

.

.

.

.

. 1 1.

.

.

.

1.

. 1 . 1 .

.

1.

.

.

.

1.

1.1 1.

. 1 .

1. 1 . 1 .

.

.1

.

. 1 .

1.

.

.

.1

. 1 .

. 1.

.1

.

. 1 .

.1

.1 1.

.

.

.

.1 1. 1 .

. 1 .1 1 .

.

.1

.

.

.

.

Note: This data is on a cash basis. Premium income is presented after deducting returned premiums.

16

11 1

.

. 1 1. 1 . 1 . 1 . 1 . 1 . 1 .

1.

1

.

.

. 1 . 1 .

.

.

.

.

.

.

.

（Billions of Yen）

mount of nsu anceen s in

n e

itten

n e

itten

mount

Insu anceeof e fo manceF

I Re ieAmount of insurance underwritten in
2 2 was approximately J
6. trillion (up 3.
year on year) due toa signiﬁcant increase in xport Credit Insurance accounting for approximately J. trillion (up 46.
year onyear) against the backdrop of an increase of total exports of Japan. y contrast, underwritten amount for loan
insurance decreased Overseas ntied oan Insurance was approximately J.4 trillion (down 2.
year onyear), and uyer s Credit Insurance was approximately J. billion (down.2 year on year). Overseas
Investment Insurance slightly decreased to approximately J.6 trillion (down 6.
year on year).

I
cti ities

uyer s Credit
Insurance

xport Credit
Insurance

n e

4

6

Overseas Investment
Insurance

Overseas ntied
oan Insurance

Trillions of en

Trade Insurance for tanding Orders from peciﬁc uyers, xport Credit Insurance forComprehensive xport Insurance with impliﬁed rocedure, xport ill Insurance,
Insurance, and reinsurance.

itten

mount

Otherss and Aector,
repayment Importo uctsOthers3

Re ion(approximately J

3.3 trillion), followed by theout
I anani ational

Asia continued to account for the largest share with 44.
iddle ast with.
(approximately J.3 trillion).

Insu ance

2F

e ation

Asia

o
Ran

iddle ast

en

urope

ount ies anCountry

Region4orthAmerica

CentralAmerica

Re ions fo

n eUnderwritten Composition
Amount

atar

2 ,

2

China

,

3

Thailand4

4

Indonesia
. .A.

6

.

outh
America

itten
Ran
6

AfricaInternationalorgani ations

Oceania

mount in FY2021
Country

Regionillions ofouth orea

3

,23

4.

2

, 2

4.

3

.

Taiwan,2 66.

ietnam

266,

3.6

4 6,3

6.6

audi Arabia

26 ,4

3.

4

.

A

6,

2.

,3

en

Underwritten Composition
AmountFY2021 Financial Results

217Annual Report FY 20 21

I Re ieofe fo mancee fo mance
utstan inen s inilits

nsu ance

utstan inommitment

ommitment

Outstanding insurance commitment in

Insu ance

2 2 was approximately Je
4.3 trillion (up 2.

year on year).

F

.
.0
2.
2.
.
4

2

uyer s Credit
Insurance

xport Credit
Insurance

Overseas Investment
Insurance

Overseas ntied
oan Insurance

Others Trade Insurance for tanding Orders from peciﬁc uyers, xport Credit Insurance forComprehensive xport Insurance with impliﬁed rocedure, xport ill Insurance,
Insurance, and reinsurance.

utstan inommitment

6

Trillions of en

Otherss and Aector,
repayment Import

Re ionAsia accounted for the largest share with 46.4 (approximately J
iddle ast with 6.6 (approximately J
2.4 trillion).

6.

trillion), followed by the

F

2

Asia

18

iddle ast

4

urope

orth
America

6

CentralAmericaouth
America

AfricaOceaniaInternationalorgani ations

emium ncome
en s inemium Income
2 2declined slightly to approximately J

3 .4 billion in

2 2(down 4.4

year on
I Re ieremium income inyear).
Fof e fo manceIemium Income

3

Insu anceeTrade Insurance fortanding Orders from
peciﬁc uyers
2.3Comprehensive xport Insurancewith impliﬁed rocedure .
xport Credit Insurance fors and Aector .
xport ill Insurance .3
repayment ImportInsurance .

einsurance.4
Overseas
Investment
Insurance2 .

o uctsxport Credit Insurance
43.

Overseas ntied
oan Insurance
3 .2

out
I an
ani ationaleco e ies

6

illions of en

Insu ancey insurance type, xport Credit Insurance
accounted for the largest share with43.
(approximately J
3.2 billion),
followed by Overseas
ntied oanInsurance with 3 .2 (approximately J. billion) and Overseas Investment
Insurance with 2 .
(approximately J
6.3 billion).

4

cti ities

2

F

.
.
.2

FY2021 Financial Results

The amount of recoveries in
2 2 was approximately J.6 billion (down 6.4 year on year).
ecoveries of claims associated with political risk events, including those through aris Club debt rescheduling,accounted for.
(approximately J. billion). The remaining.
(approximately J
2.2 billion) was
associated with commercial risk events.

e ationen s in Reco e ies

2 .
.
2

2

3

olitical isk vent

3

4

4

illions of enCommercial isk vent19

Annual Report FY 20 21

I Re ieofe fo mancee fo mance

nsu anceen s inilaims ailits

laims aiInsurance claims paid in
2 2 were approximately J
6 .2 billion (up 6 .4 year on year), due to an increase
in claims paid for both political risk events and commercial risk events. It was the second largest amount since thefoundation of
I in 2, following
2 2 when claims paid was approximately J
6 . billion.
F

.2
.
.
2 .
.2
2

3

4

olitical isk ventlaims ai

Overall.

(approximately J

Commercial Ris
iddle ast.2

urope .

36.6 billion).

ventolitical Ris

orth America
.

urope
2.3

Oceania .

.

iddle ast

Oceania .

ventCentralAmerica.6

Central America
.4

Asia
.

outh
America.

Asia .6
iddle ast.2
orthAmerica.

Africa.

outh
America
24.2
Africa
.

Asia
23.6

outh America
42.

There were no claims paid
related to commercial risk
events in orth America.

20

Commercial isk vent

Re ion in FY2021

Africa accounted for the largest share with

Central America .

6

illions of en

Africa6.

There were no claims paid
related to political risk eventsin urope and Oceania.

Insu eents in FY2021

Insu eents

Ris

e in FY2021

ype o Ris

Category

F

F
, 3
4, 6
4, 2
4,
,
23, 6

2 , 26
,36
,2 3
36, 4
24,6
6 ,24

44.
6 .3
.
.6
3 .
6 .4

ccu ence ofents anlaims ai
illions of en

3 ,3

36,

2 ,4 4

4,

,

2 ,

3 ,

,

3

36, 4

4 ,

ents

4, 6

24,6

,

6 ,

2 ,

,36

4 ,

6 ,

Claims aid

Occurrence of vents

ccu ence of

4

,

,

Occurrence of vents

Re ionccu ence ofents

olitical isk Events
2 ,23,623

mountsRe ion FY2021

illions of en

2 ,
,
,
,

ia
As

2,64
23
6
s
a
nia
ast rope erica
ric Africa
u
cea
le
me
Am
A
l
O
a
idd
th
ntr
ou
Ce
h
t
r
o
,4 2

Commercial isk Events
4 ,
3 ,
3 ,
2 ,
2 ,
,
,
,

ia
As

illions of en

3 , 2

FY2021 Financial ResultsIn
2 2 , approximatelyof all political risk events occurred in urope including those related tokraine, with the remainder taking place in Africa and Asia. Commercial risk events occurred in outh
America, Asia and theiddle ast involving large scale projects, which was a trend continued from2 2 .

e ationClaims aid

36,

illions of en

out
I an
ani ational,
2 , 26

Commercial isk Eventso uctsolitical isk Events

FY201 FY2021

Insu ance

In certain cases, debts are fully paid after submission of notification of occurrence of losses. This results
in claims either not being made at all or being made in the following fiscal year. or this reason, theamount presented in occurrence of events does not directly correspond to the amount for claims paid.
Occurrence of events and claims paid related to reinsurance are recorded under commercial risk.

cti ities

3 ,3
36, 4
6 ,2
36,
2 ,4 4, 2

Iolitical isk
Commercial isk
Total
olitical isk
Commercial
isk
Claims aid
Total

Occurrenceo ventsF

enof e fo manceillions of

ear on ear
C ange ( )I Re ie

Insured events amounted to approximately J.3 billion in reported insured losses in
2 2 .
olitical risk events decreased by half compared with
2 2 when insured events rose sharply due to theimpact of the CO ID
pandemic. On the other hand, commercial risk events increased substantially.
The total amount of claims paid was approximately J
6 .2 billion, the second largest amount since thefoundation of
I in
2. In political risk events, claims were paid for insured events covered byOverseas Investment Insurance which occurred in
2 2 due to the CO ID
pandemic. In commercial
risk events, claims were paid for insured events involving large scale projects covered by uyer s Credit
Insurance.

26, 6
4,
3,33

le
idd

ast

h
ort

, 4

4
s
a
a
a
e
p
ric
nia
ric Africuro l Ame
cea
me
A
O
a
th
ntr
ou
Ce

21

Annual Report FY 20 21

I Re iee ieofe fo manceof e fo mance

mount of nsu ance

n e

itten

mount

ype o Insurancen eInsu ance
F

F

itten

e
F

illions ofFF

Compositionenear on ear
C angexport Credit Insurance
One year or lessore t an one year
rade Insurance or Standing
Orders rom Speci c uyers
xport Credit Insurance or
S s and AFF Sector
Compre ensive xport Insurance
wit Simpli ed rocedure
xport ill Insurance
repayment Import Insurance
Overseas Investment Insurance
uyer s Credit Insurance
Overseas Untied oan Insurance
Reinsurance
otal( ote ) The total amount is calculated based on the insurance policy issue date, by applying the exchange rate on the insurance policy
contract date and using the actual underwritten amount, not the insured amount of the foreign currency denominatedinsurance contract. (The same applies to the table below.)( ote 2) In xport Credit Insurance, capital goods are classified into transactions with more than one year. (The same applies
hereinafter.)( ote 3) The floating interest coverage case is calculated based on the interest rate at the time of the conclusion of the contract. (Thesame applies to the table below.)

n e

itten

Regionmount

Re ionFFillions of

F

F

F

Compositionenear on ear
C angeAsia
iddle ast
urope
Nort America
Central America
Sout America
A ricaOceaniaInternational organi ations
( ote
(

22

(
(
(

) Classification used to compute the above amount re shipment Country of the shipment consignee ost shipment
Country of the payer (when guaranteed, country or international organi ation of the guarantor).
ote 2) ince the underwritten amount is recorded for both destination and payer countries, the total amount does not matchthat of underwritten amount by insurance type.
ote 3) The amount is classified into international organi ations instead of regions, when guaranteed by an international organi ation.
ote 4) Central Asia is included in Asia. (The same applies hereinafter.)ote ) Central and astern urope and ussia are included in urope. (The same applies hereinafter.)utstan inutstan in

nsu ance

ommitment

Insu ance
F

F

F

e

illions ofFF

Compositionenear on ear
C angexport Credit Insuranceof e fo mance

One year or lessore t an one year
rade Insurance or Standing
Orders rom Speci c uyers
S

I Re ie

ype o Insurance

ommitment

xport Credit Insurance ors and AFF Sector

Compre ensive xport Insurance
wit Simpli ed rocedureI

xport ill Insurance

cti ities

repayment Import Insurance
Overseas Investment Insurance

Insu anceuyer s Credit Insurance
Overseas Untied oan Insurance

Reinsuranceo uctsotal( ote ) In principle, the foreign currency denominated insurance contract is calculated based on the exchange rate at theend of each fiscal year. (The same applies to the table below.)( ote 2) The floating interest coverage case is calculated based on the interest rate at the end of each fiscal year. (The same
applies to the table below.)F

Re ionFillions of

F

F

F

Compositionenear on ear
C angeAsia

urope
Nort America
Central America
Sout America
A ricaFY2021 Financial Results

iddle aste ationRegionommitmentout
I an
ani ational

utstan in

OceaniaInternational organi ations( ote ) Classification used to compute the above amount re shipment Country of the shipment consignee
ost shipment Country of the payer (when guaranteed, country or international organi ation of the guarantor).
( ote 2) ince the outstanding commitment is recorded for both destination and payer countries, the total amount does notmatch that of outstanding commitment by insurance type.
( ote 3) The amount is classified into international organi ations instead of regions, when guaranteed by an internationalorgani ation.

23

Annual Report FY 20 21

I Re iee ieofe fo manceof e fo manceemium ncome

emium Income

Insu ance

ype o Insuranceeillions of

F

F

F

F

F

Compositionenear on ear
C angexport Credit Insurance
rade Insurance or Standing Orders rom Speci c uyers
xport Credit Insurance or Ss and AFF Sector

Compre ensive xport Insurance wit Simpli ed rocedure
xport ill Insurance
repayment Import Insurance
Overseas Investment Insurance
uyer s Credit Insurance
Overseas Untied oan Insurance
Reinsurance
otal
( ote

) The premium income is recorded at the start of the insurer s obligation period, unlike the underwritten amountwhich is based on the policy issue date. Therefore, the premium income and underwritten amount may berecorded in different fiscal years.
( ote 2) In and after
2 2 , premiums are presented as net premiums written (direct premiums written and inward
reinsurance premiums written, etc. from which outward reinsurance premiums, etc. are deducted.)

nsu ancelaims ai

ype o Insurance

laims aiInsu ance
F

e an

Ris

F
olitical Commercial
Ris
Ris

e
F

olitical Commercial
Ris
Ris

illions ofFolitical Commercial
Ris
Ris

en

F

olitical Commercial
Ris
Ris

olitical Commercial Composition ear on ear
( )
Ris
Ris
C ange ( )xport Credit Insurance

rade Insurance or Standing
Orders rom Speci c uyers
xport Credit Insurance or
S s and AFF Sector
Compre ensive xport Insurance
wit Simpli ed rocedure

xport ill Insurance

repayment Import Insurance
Overseas Investment Insurance
uyer s Credit Insurance
Overseas Untied oan Insurance
Reinsurance
otal

laims ai
RegionAsia
iddle ast
urope
Nort America
Central America
Sout America
A ricaOceaniaotal

24

Re ionFillions ofFolitical Commercial
Ris
Ris

F
olitical Commercial
Ris
Ris

F
olitical Commercial
Ris
Ris

en

F
olitical Commercial
Ris
Ris

olitical Commercial Composition ear on ear
RisRis( ) C ange ( )eco e iesRis

ype o RisFeillions of

F

F

F

F

Compositionenear on ear
C angeolitical Ris

otal

Reco e ies

Re ionRegionFillions of

F

F

F

F

Compositionenof e fo manceCommercial Ris

I Re ie

Reco e ies

ear on ear
C angeAsiaI
cti ities

iddle ast
urope
Nort America

Insu ance

Central America
Sout America

o ucts

A ricaOceaniaotal

Reco e ies

Rise

Re iony region, the iddle ast accounted for about 6
of total recoveries at approximately J.
billion. This includes about J. billion from the epublic of Iraq ( aris Club recoveries) and aboutJ.3 billion from ashemite ingdom of Jordan ( aris Club recoveries).
outh America accounted for about 2
at approximately J
3. billion. This includes about J
3.6
billion from the Argentine epublic ( aris Club recoveries) and about J. billion from the epublicof Chile (commercial risk related recoveries).
Asia accounted for 4.6 of total recoveries at approximately J
2. billion. This includes about J.2 billion from the epublic of Indonesia ( aris Club recoveries) and about J. billion from theeople s epublic of China (commercial risk related recoveries).
ecoveries from urope amounted to approximately J. billion, including about J. billion
from the epublic of erbia and about J. billion from osnia and er egovina, while those fromCentral America amounted to approximately J.3 billion including about J.3 billion from thenited exican tates (commercial risk related recoveries).
ecoveries from Africa and orth America amounted to approximately J
million, including
about J
3 million from the Arab epublic of gypt and about J
million from the nited tatesof America (commercial risk related recoveries), and other recoveries.

FY2021 Financial Results

Reco e ies

e ationecoveries totaled approximately J.6 billion in
2 2 , compared with J
23. billion in
2 2 (down 6.4 from the previous year).
ooking at the results by risk type, recoveries related to political risk events, including those througharis Club debt rescheduling, amounted to about J. billion (down 6.6 from the previous year).
ecoveries related to commercial risk events amounted to about J
2.2 billion (down.
from theprevious year).

out
I an
ani ational

Reco e ies in FY2021

25

S

rgani ation for Economic Co-operation
and Development
ECD

1

o in
a t one its ane iteetin anotua anteesa tici ants

eetin

ciall
e its

The O CD was established in
6 todiscuss various global economic issues, andJapan has been a member since April
64. The orking arty on xport Credits
and Credit Guarantees ( CG), a subordinate
organi ation of the O CD Trade Committee,
exchanges information and discusses
issues related to o cial export credits,
including trade insurance provided byI.
As a Japanese export credit agency ( CA),I actively participates in the discussions
in cooperation with concerned Japanese
government agencies such as
TI.
In addition to discussions on ﬁnancial
terms and conditions for o cially supported
export credits, the CG has also focused on
the responsibility of CAs for social issues
such as the environment, climate change,
anti bribery, and sustainable lending.

The ﬁnancial terms and conditions forexport credits are set out in the O CD s
Arrangement on O cially upported xport
Credits to provide a framework for theorderly use of export credit and to foster alevel playing ﬁeld. The Arrangement
prescribes common terms and conditions,such as minimum premium rates, down
payments, maximum repayment terms,
minimum interest rates, and repayment
terms, when CAs provide export credit. In
addition to the Arrangement, sector speciﬁc
terms re ecting the characteristics of eachsector may be applied to projects related
to ships, nuclear power plants, civil aircraft,
rail infrastructure, renewable energy,
climate change mitigation and adaptation
technologies, and water, as well as projectﬁnance.
I provides export credits in linewith the Arrangement.

3

4

oaches to n i onmental
Issuesince the formulation of the O CD
ecommendation of the Council on
Common Approaches for O ciallyupported
xport
Creditsandnvironmental and ocial Due Diligence(the Common Approaches) in 2,
revisions have regularly been made to
improve the Common Approaches,
including the fourth revision made in April
2 6. ased on the Common Approaches,
I has established the Guidelines onnvironmental and ocial Considerations inTrade Insurance to encourage theappropriate environmental and social
considerations for projects covered by its
insurance.

26

2

an ement on
Su o te
ot

nti

i e

easu es

ased on the O CD Anti ribery
Convention adopted in, whichprohibits provision of money or anything ofvalue to foreign public o cials for unjust
enrichment, and O CD ecommendationof the Council on ribery and O ciallyupported xport Credits in 2 6,
I hastaken appropriate measures against bribery.
Inarch 2the ecommendation wasrevised, andI is strengthening its e ortsbased on the revisions.

N

I Activities

ain International Activities
or ingoward a Sustainable Society

Cooperation wit Overseas Organi ations
Supporting apanese S
s int eir Overseas usiness Development
ro ects Covered by N
S

I Insurance

xports Covered by N

I Insurance27

Annual Report FY 20 21I

cti ities

ain inte national acti ities
onclusion ofonoo e ation

ith theippon xport and Investment Insurance (I)
concluded a memorandum of understanding on
cooperation ( O ) with the inistry of conomy ofthe epublic of A erbaijan (A erbaijan) in April 2 2 .
The signing ceremony was held online. The inistryof conomy of A erbaijan is an administrative entitythat has jurisdiction over the domestic economic
policy, promotion and management of investment
activities of private companies, attraction of
investment from foreign companies, encouragement

onclusion ofonoo e ationonoo e ation

ith

I concluded a memorandum of understanding on
cooperation ( O ) with the astern and outhern
African Trade and Development ank (TD ), aninternational ﬁnancial institution, in December 2 2 .
TD is a regional development ﬁnancial institution topromote trade, economic integration, and sustainable
development of its member countries in the easternand southern African region, funded by countries in theregion, the African Development ank, etc.
This O aims that the strengthened relationship will
promote African economic development and increase
Japanese companies trade with and investment in
Africa by creating business opportunities of Japanese

onclusion ofonoo e ation

e

ai an

of trades within and outside the country, etc. This
O aims to promote export transactions between
the two countries and support companies to enter
into the market of the other country.
I has supported Japanese companies export toA erbaijan through trade and investment insurance.
ollowing the conclusion of this O ,I continues
to strive to develop the bilateral trade environmentthat will further promote economic and businessactivities in the private sector.

of Japanese companies in the African region. ndertheO , the two parties built a reinsurance
framework as a concrete initiative.
This new O is intended to further expand andreinforce the cooperative framework between
I
and ICI C through initiatives in non reinsurance
business. nder thisO ,I aims to support
countries in which potential opportunities for domestic
economic growth and for business participation by
Japanese companies are inhibited by the CO ID
pandemic, while encouraging Japan s export ofinfrastructure systems to African nations.
The reinsurance framework and thisO are apart of the activities in line with the
AD Initiative
announced by
I in December 2 2 .

Bcompanies in the member countries. peciﬁcally, it
includes the aims of ( ) cooperation on setting up a
project towards TICAD scheduled in August 2 22 (2)exchange of ideas and information for the economic
development of Africa and creation of Japanesecompanies business opportunities (3) exchange ofideas and information for collaboration in the ﬁelds ofdecarboni ation and high quality infrastructuredevelopment in Africa and (4) human resource
development and relationship enhancement throughworkshops and seminars.
This O is a part of the activities in line with the
AD Initiative announced by
I in December 2 2 .

ith IFI concluded a memorandum of understanding
on cooperation ( O ) with the ublic Investment
und ( I ) of the ingdom of audi Arabia ( audi
Arabia) in January 2 22.
I is the sovereign wealth fund fully owned by theGovernment of audi Arabia, leading the domestic
economic reforms and diversiﬁcation throughinvestment inside and outside of the country.
audi Arabia and Japan formulated the audi Japanision 2 3 as a compass of the strategic partnershipto foster cooperation for development of the two28

of conom of

ith I I

I concluded a memorandum of understanding
on cooperation ( O ) with the Islamic Corporation
for the Insurance of Investment and xport Credit(ICI C) in ovember 2 2 . The signing ceremony washeld online.
ICI C is an international ﬁnancial institution thatprovides investment insurance, export credit insurance,
etc. as a member of the Islamic Development ank(IsD ) Group to expand investment in and trade with
Islamic countries.
reviously,
I and ICI C
concluded an
O in August 2
to establish acooperative framework with the aim of setting up
projects, in recognition of a huge demand forinfrastructure development and business opportunities

onclusion of

inist

countries. Through the framework under this O ,I aims to promote the audi Japan ision 2 3 ,encourage energy transition and decarboni ation in
audi Arabia, develop the economy of audi Arabia
that is promoting diversiﬁcation of industries, andexpand Japanese companies business opportunities
in audi Arabia.
This O is a part of the activities in line with the
AD Initiative announced by
I in December
2 2 .

onclusion ofithof e fo manceand related products.
nder this OC,
I and
C foster cooperation
aiming to expand Japanese companies business
opportunities and promote decarboni ation in theenergy sector inuwait. They also discussenergy related projects in uwait involving Japanesecompanies as well as promotion of export of Japanese
products.
This OC is a part of the activities in line with the
AD Initiative announced by
I in December 2 2 .

I Re ie

I concluded a memorandum of cooperation( OC) with uwait etroleum Cooperation ( C) of
the tate of uwait ( uwait) in arch 2 22.
C isuwait s national petroleum company,
foundeded in. It owns eight a liated companies
inside and outside of the country, and comprehensively
develops petroleum related businesses, such asprospecting, drilling, production, storage, reﬁning,processing, transport, distribution and marketing of
petroleum, natural gas, and chemical/petrochemicalI
cti ities
Insu ance

eetin sresponse to and business conditions under the
CO IDcrisis, climate change mitigation measures,and risk management initiatives.
These annual meetings allow us to conﬁrm theglobal trends of trade and investment insurance, andfurther strengthen our cooperation with institutions inother countries.

e ationIn
2 2 , bilateral meetings were held online with
export credit agencies ( CAs) and governmento cials from the epublic of Austria (Austria),
Canada, the eople s epublic of China (China),
the ederal epublic of Germany (Germany), andthe rench epublic ( rance).
e exchanged frankopinions concerning a wide range of topics, such as

out
I an
ani ationalol in of Bilate alo uctshotos o the online si nin ceremony

FY2021 Financial Results

hotos o the bilateral meetin

ithustria29

Annual Report FY 20 21I

cti ities

ain inte national acti ities
a tici ation in the Secona an

f ica u lic

I participated in the econd Japan Africa
ublic rivate conomic orum, which was hosted
online by the inistry of Trade, conomy and Industry(
TI), the Government of the epublic of enya
( enya), and the Japan xternal Trade Organi ation(J T O) in December 2 2 .
This orum is held every three years to strengthen
cooperation of private companies in Japan and Africa
and promote Japanese companies business activities
in Africa, in ﬁelds such as trade and investment,
infrastructure, and energy.
I moderated a debate on enhancement ofﬁnancing functions for expanding private investment
in Africa at the sectional meeting Accelerating
inanceolutions in Africa.
epresentatives ofa tici ation in the Be ne

companies and banks using trade and investment
insurance in their businesses for Africa, as well as
those of international ﬁnancial institutions and otherentities working withI, took the podium. They
also shared their previous e orts and exchanged
views as to what they would expect from public
institutions includingI.
T introduced its support for Japanesecompanies business expansion in Africa by referringto ( ) support under the
AD Initiative (2)establishment of consultation desks for Japanesecompanies (Japan Desks) in African ﬁnancial
institutions and (3) support under cooperationagreements with African ﬁnancial institutions.

nion

The erne nion (The International nion of Credit
and Investment Insurers) is a forum for global export
insurance agencies, international organi ations, andprivate insurers to share expert knowledge anddiscuss common challenges pertaining to export
credit insurance and investment insurance. The
inaugural meeting was held in
34 in
erne,
wit erland, which is the origin of the name erne
nion, and as of the end of 2 2 there were a totalof 4 member institutions. The erne nion meets
twice a year in spring and autumn to exchange ideas
and hold discussions, and also holds sessions such as
expert meetings and webinars from time to time. In

2 2 , the pring eeting was held online in April,
and the Annual General eeting was held in Octoberin udapest, ungary.
I attended both meetings
to exchange information with attending institutions.
At the Annual General eeting, r. uichiro Akita,
Generalanager ofI s lanning and olicy
Department was appointed as new ice Chair of thexport Credit Agency ( CA) Committee. The
appointment ofI s manager as the o cial of theernenion followedr.
idehiro onno, thenChairman ofI, who was the Chair between 2
and 2.

hoto o the enue o the30

i ate conomic Fo um

nnual

eneral

eetin

o

in

o a

a Sustaina le Societ

ui elines on n i onmental an

Socialof e fo mance

I has introduced objection procedures, assigning
an environmental guideline examiner who is independent
from our insurance underwriting department. Thus,
I will continue to appropriately assess eachproject.

I Re ieI
cti ities

hoto pro ided byarubeniorporation

Insu ance

To fulﬁll its corporate social responsibility regarding
environmental and social issues,
I follows the
Guidelines on nvironmental and ocial Considerationsin Trade Insurance and its complementary paper ofGuidelines for Information Disclosure Considerations
for uclear ector rojects in Trade Insurance toassess whether companies implementing projects
covered by
I s insurance have adequately given
environmental and social considerations.
In
2 2 ,I conducted screenings for 3
projects. In the screenings, projects were classiﬁed
into three categories (A, , or C, categori ed indescending order of the si e of the environmental
impact), based on information provided in screening
forms submitted by applicants (exporters, etc.).
Ithen conducted each assessment appropriately for its
category.
ven during the prolonged CO ID
pandemic,
I exibly conducted proper assessments
for Category A projects, using virtual inspections andother means, instead of the on site inspections thatare ordinarily required.
Also, to ensure compliance with the guidelines,

onsi e ationso uctsF

Screenings by Regionout
I an
ani ational

Category A

F

Screenings by Category

CategoryAsiae ationiddle ast

A ricaCentralSout
Americaurope NIS

Categori ed as A, , or, C in descending order of thesi e of the environmental impact of each project

The iddle ast includes Turkey
Centralouth America includes

exico.

FY2021 Financial Results

Category C

31

Annual Report FY 20 21I

cti ities

oo e ation it
e seasani ations

urope
ne-Stop-Shop einsurance Agreements

I has established a cooperative network with related
institutions around the world. This enables us to quickly
and accurately respond to the diverse needs of Japanesecompanies as they develop their businesses internationally.

1

ne StoSho

Reinsu anceor cases in which a Japanese company is partneringwith foreign companies on a project in a third country,
I concludes one stop shop reinsurance agreementswith major overseas export credit agencies ( CAs). The
purpose of these agreements is to underwrite risks forthe portion exported from Japan. or example, when aJapanese company forms a consortium with foreigncompanies for export to a third country, the foreigncompanies can conclude insurance contracts with theirown countries CAs for the total amount of the export
contract including the portion exported by theJapanese company.
I then provides reinsurance tothe foreign CAs for the portion exported by theJapanese company.

Fo ei nShort-term einsurance Agreements

xport credit Fo ei ninsurance for the om anentire export
contract

xport

6

rance

Direction des elations conomiques xt rieures (D )anque ublique d Investissement ( pifrance) 2

6xport inance (

)

hi
ount
Bu e

2 Sho t te m Reinsu ance
I has concluded reinsurance agreements with
CAs in Asia and other regions to support exports tothird countries by Japanese companies located in
Asian and other countries. These agreements increase
the underwriting capacity of CAs in Asia and otherregions. This makes it easier for Japanese companies
to mitigate their international trade risks by using
export credit insurance o ered by local CAs.
einsurance
agreement

A ricaCooperative Agreementsouth Africa

xport Credit Insurance Corporation of outh Africa ( CIC A) 2

Fo ei niddle ast
xport credit insurance

a anesea liateom anxport, etc.

Reinsu ance ith u o ean an
secto Insu e s

Bu e

i ate

I provides underwriting capacity through short term
reinsurance agreements with uropean andprivateinsurers.

the32

oo e ati e Relations

Cooperative Agreements

IsraelAbu Dhabi
Iraq
Iran

S

I has built long term relationships throughcooperative agreements with major CAs that belong
to the erne nion and international organi ations.

6

ussian Agency for xport Credit and Investment Insurance ( IA ) 2

Consortium
agreement
xport
Contract

2
2
2
3
3
4

ussia

Cooperative Agreements

xport

a aneseom aneinsurance for the
portion of export bya Japanese company

Italyervi i Assicurativi del Commercio stero ( AC ) 2
etherlands Atradius . . (AT ADI )2
elgiumCredendo
xport Credit Agency
2
Germanyuler ermes Deutschland AG () 2Austria
Oesterreichische ontrollbank AG (Oe )2inlandinnvera plc ( I
A)
2
pain
Compa a spa ola de eguros de Cr dito a la xportaci n (C C ) 2
wit erland
wiss xport isk Insurance (
)
2
rance
anque ublique d Investissement ( pifrance) 2
C ech epublic xport Guarantee and Insurance Corporation ( GA ) 2
xport inance ()
2
Denmarkksport redit onden ()
2Turkeyaudi Arabia
uwait

Israel xport Insurance Corp. td. (AA)
ubadala Development Company J C ( DC) 2
inistry of inance of Iraq
2
Trade ank of Iraq (T I)
2inistry of conomic A airs and inance of theIslamic epublic of Iran2 6xport Credit ank of Turkey (Turk ximbank) 2
inistry of inance of audi Arabia
2 2ublic Investment und ( I )2 22
uwait etroleum Corporation ( C)
2 22

Nort America
ne-Stop-Shop einsurance Agreements

Germanyuler ermes Deutschland AG ()/
Coopersybrand, Germany (C )6fankengruppe ( f )2
Austria
Oesterreichische ontrollbank AG (Oe )6
Italyervi i Assicurativi del Commercio stero ( AC )6inlandinnvera plc ( IA)
6etherlands Atradius . . (AT ADI )6
pain
Compa a spa ola de eguros de Cr dito a la xportaci n (C C ) 2
bekistanbekinvest ational xport Import Insurance Company (IT) 2kraine
The tate xport Import ank of kraine (I A )2ussia
tate Development Corporation (. )2elaruselarusbank
2
ussia
ussian Agency for xport Credit and Investment Insurance ( IA )2 3
Turkmenistan The tate ank for oreign conomic A airs of Turkmenistan (T )2C ech epublic xport Guarantee and Insurance Corporation ( GA )2
a akhstana akh xport
2 6
Georgia
inistry of conomy and ustainable Development of Georgia 2
ussia
Joint tock Company iberian Coal nergy Company
JC2
elgiumCredendo
xport Credit Agency
2
ungaryungarian xport Credit Insurance lc. (I ) 2
A erbaijan
The epublic of A erbaijan inistry of conomy 2 2Canadaxport Development Canada ( DC)xport Import ank of the nited tates (

I

A

2
)2

Short-term einsurance Agreements
Canadaxport Development Canada ( DC)22

CanadaSout America
Cooperative Agreements
ra ilCompanhia ale do io Doce ( ale)2
etr leo rasileiro .A. ( T O A )2anco acional de Desenvolvimento conomico e ocial ( D ) 2
ra ilian Guarantees and und anagements Agency (A G ) 2

of e fo mance

xport Import ank of the nited tates (I A )xport Development Canada ( DC)
The nited tates Department of nergy (DO ) 2. . International Development inance Corporation (D C) 2

I Re ie

Cooperative AgreementsI
cti ities
Insu anceo uctsOne Stop S op Reinsurance Agreements
S ort term Reinsurance Agreements
Cooperative Agreements

Oceania
Cooperative Agreements

ne-Stop-Shop einsurance Agreements

Australia
orea
Thailandxport inance Australia ( A)2orea Trade Insurance Corporation ()2xport Import ank of Thailand ( I Thailand) 2

ingaporealaysia
Indonesia
ThailandTaiwanong ong

CIC imited ( CIC )2xport Import ank of alaysia erhad (I )2
T. Asuransi Asei Indonesia (Asuransi Asei) 2
xport Import ank of Thailand ( I Thailand) 2
Taiwan s xport Import ank of the epublic of China (Taiwan I ) 2
ong ong xport Credit Insurance Corporation (CIC) 2

Reinsurance Agreements wit
rivate sector Insurers

4
62

uropean and US

uler ermes Deutschland AG () (private sector) 2
CO AC (private sector)
2
American International Group, Inc. (AIG)
2
Tokio arine CC ( CC)2
itsui umitomo Insurance Company imited ( urope) /Amlin 2Credendo Ingosstrakh Credit Insurance, C
2

3
4
6

Indonesia
China
India
Australia
Thailandorea xport Insurance Corporation ()
4
CIC imited ( CIC )Taiwan s xport Import ank of the epublic of China (Taiwan I ) 2
T. Asuransi Asei Indonesia (Asuransi Asei) 2
ietnam Oil and Gas Group ( etrovietnam) 2
inistry of inance of ietnam
2 4
T ertamina ( ersero) ( ertamina)
2
China xport Credit Insurance Corporation ( I O)2
CGC td. ( CGC)
2
Department of oreign A airs and Trade (D AT) /xport inance Australia ( A)2xport Import ank of Thailand ( I Thailand) 2 2International Organi ations

FY2021 Financial Results

Short-term einsurance Agreements

orea
ingapore
TaiwanIndonesia
ietname ation

Asia

out
I an
ani ational

In classifying the countries on the map, the color code represents two
types of agreements for some countries. or countries that are partners
to both one stop shop reinsurance agreements and cooperative
agreements, the color code for one stop shop reinsurance agreements
is used. or countries that are partners to both short term reinsurance
agreements and cooperative agreements, the color code for short term
reinsurance agreements is used.

Cooperative Agreements

xport credit agencies and export ﬁnancing institutions of A C
members ( organi ations in 2 countries)
uropean Investment ank ( I )2Islamic Development ank (IsD )2
African Trade Insurance Agency (ATI)
2International inance Corporation (I C)
2 2uropean ank for econstruction and Development (D) 2 2
ultilateral Investment Guarantee Agency ( IGA)
2 2
The astern and outhern African Trade Development ank (TD ) 2 2
The Islamic Corporation for the Insurance of Investment and xport Credit (ICI C) 2 2

33

Annual Report FY 20 21I

cti ities

Su o tina anese S
usiness De elo mentnhanceBusiness Su

o t S stem fo S

system as well as by sending lecturers to a variety ofwebinars. As a result, manys used our tradeand investment insurance in 2 2 as before.
I will continue to actively support theoverseas business expansion ofs andbusinesses in the A sector making further use ofpartnership in this network, while improving the
products and services to strengthen its support for
them.
Number o New artners ips by Fiscal ear(currently

The iroshima ank
omiji ank
iroshima hinkin ank

2

banks

2

3

2 banks

2

4

6 banks

22shinkin banks

2

2 banks

6shinkin banks

institutions2

6 6 institutions

3shinkin banks

4institutions

2

3 institutions

iya aki ank

The Oita ank

34

institutions
institutions

The honai ank
The amagata ank
Daishi

The Akita ank
okuto ankokuetsu ank

The Towa ank
hinonome hinkin ank

okkoku ank

The achijuni ank
Iida hinkin ank
uwa hinkin ank
agano hinkin ank
The okuriku ank
The ank of Toyama
irst ank of Toyama

The okkaido ank
orth aciﬁc ank
The Obihiro hinkin ank
akkanai hinkin
Asahikawa hinkin ank
The Daichimirai hinkin ank

The Aomori ank
The ank of Iwate
The Tohoku ank
The

The Toho ank

The an in Godo ank

Joyo ank
Tsukuba ank

ank

The Ashikaga ank
The Tochigi ank

The usashino ankaitama esona ank
The aitamakenhinkin ank

amaguchi ank
The ank of okohama
The amanashi Chuo ank
The ofu hinkin ank

The Iyo ank
The hime ank
The hikoku ank
The agawa ank
The yakujushi ank

an ju anank
The iyoank The antoank
The enshu Ikeda ank
ansai irai ank
The Osaka City hinkin ank
The ita Osaka hinkin ank

The Tokushima Taisho ank

Support Networ

institutions

2 2

The Juroku ank
The Gifu hinkin ank
The Tono hinkin ank

The Juhachi hinwa ank

Theinstitutions

institutions

The ank of aga

The agoshima ank
agoshima ougo hinkin ank

4 institutions

4institutions

The inato ank
Amagasaki hinkin ank
anshu hinkin ank
The Chugoku ank
Tomato ank The Tottori ank
Tamashima hinkin ank

The igo ank
The umamoto ank

2 institutions2

2 2

The ank of yoto
yoto Chuo hinkin ank

The ank of ukuoka
Chikuho ank
The ishi ippon City ank
itakyushu ank

Total

2

The higa ank

Thehinkin anks
(Credit nions)2

The ukui ank
ukui hinkin ank

ank of The yukyus
The ank of Okinawa

institutions)(decrease due to mergers etc )egionalanks, etc.

lack fontThee seass

I s network to support Japanese small andmedium si ed enterprises (s) in their overseas
business development launched with
regionalbanks in2
, with the aim to promote the useof trade and investment insurance. The network
expanded across all of Japan s 4 prefectures andcomprised ofmembers including regionalbanks, shinkin banks, and organi ations in the
agriculture, forestry, and ﬁsheries (A ) industry asof April 2 22. Through the partnership with these
institutions, we have supported the overseas
business development of Japaneses andbusinesses in the A sector across the country.
In 2 2 , we created a new product information
brochure based on the voices of our customers. e
also prepared a new lea et for exporters of A andfood products and published it on our website andother sources. In addition to the video materials
prepared in
2 2 , the provision of easier tounderstand explanatory materials allowed us toacquire new customers who had been unfamiliar
with the trade and investment insurance.
e also actively carried out promotional activities
by having meetings with customers considering theuse of our services through a web conferencing
egional ﬁnancial
institutions, etc.
lue font hinkin bankss in t ei

or Global Operations oapanese S
As o Aprils

The hi uoka ank
nshu hinkin ank
The eishin hinkin ank
amamatsu Iwata hinkin ank
hi uoka ai u hinkin ank
The ank of agoya
The Chiba ank
The Oka aki hinkin ank
The eiyo ank
eto hinkin ank
The Chiba ogyo ank
Toyohashi hinkin ank
The ishio hinkin ank
The ekikai hinkin ank

iraboshi ank, hoko Chukin ank, esona ank,
ational utual Insurance ederation of Agricultural Cooperatives
ational utual Insurance ederation of ishery Cooperatives
The orinchukin ank
Asahi hinkin ank, The Johnan hinkin ank, Johoku hinkin ank,
The ugamo hinkin ank, eibu hinkin ank, The Tama hinkin ank,
The Tokyo igashi hinkin ank

In a

Reinsu ance ofe seas In estment Insu ance in a ane ationFY2021 Financial Results

available only tos and businesses in theAsector. About ,3companies have used
the service since its start in 2
, and roughly
6of them have used trade and investment
insurance.
I will continue to provide active support
for overseas business development of Japanesecompanies includings and businesses in theAector.

outI an
ani ational

I providess ( ote ) or businesses in the( ote 2)A
sectorwith a service by which they
can obtain up to eight credit check reports freeof charge for the credit review and credit rating
registration of overseas trading companies(buyers). The use of trade and investment
insurance requires prior buyer s registration forwhich a credit check report is needed to apply.
As the report can be obtained throughI atactual cost in principle, this free service iss an Businesses in the FF Sectoo uctse it hec Se ice fo Bu e s Re ist ation fo S

Insu ance

F ee

insurance by setting up ratings based on our
original criteria.
e provide a list withinformation on countries and industries uponrequest from our customers out of theaccumulated information about approximately
2 ,pieces of information on the buyers thathave transactions with Japanese companies.
This service is used fors and businesses inthe A
ector to select and gather information
on buyer candidates in considering expanding
their business abroad.
I will continue to support active overseas
business development of Japanese companies
through its assorted services.

cti itiese have no information on the importer of the
products we want to export.
e want you to provide combined information
on buyers and their ratings.
esponding to these voices of our customers,
we made a list of information on overseas
trading companies (buyers) in our possession(such as name, buyer code, rating, business
type, and address) and started to provide it to
our registered insurance users for free in January
2 2 .
rior to underwriting trade and investment
insurance, we conduct credit review of overseas
counterparties (buyers) of Japanese companies
and determine whether or not to underwrite

I

Ratin Info mation Se iceof e fo mance

distribution of Overseas Investment Insurance,
respectively.
Overseas investment by
s is now on the rise,and manys are enhancing their overseas
business development activities. This reinsurance
network has enableds to consult with theirfamiliar casualty insurance companies about any
concerns over country risk. It has also allowed
I to deliver Overseas Investment Insurance tomore customers through diverse channels ofcasualty insurers.
I will actively continue to develop thisinitiative using the reinsurance network throughthe public private partnership so that we canincreasingly support the overseas investment ofJapanese companies.

I Re ie

The Order for nforcement of the Trade andInvestment Insurance Act was partially revised inJuly 2, intended to broadly support overseas
business development of small and medium si edenterprises (s). As a result, private sector
casualty insurance companies have been enabled
to distribute
I s Overseas Investment Insurance,
especially tos, through the underwriting ofreinsurance byI.
ased on this revised cabinet order, Tokioarine
ichido ire Insurance Co., td., itsuiumitomo Insurance Co., td., and Aioi issay
Dowa Insurance Co.,td. entered into areinsurance contract withI in August 2,
ebruary 2 2 , andarch 2 2 and started

ote . This service applies to thes speciﬁed in Article 2, paragraph of the mall and edium i ed
nterprise asic Act (Act o.
4 of
63).
ote 2. This service applies to persons engaged in the A
sector, entities organi ed by those persons, or
entities established under the mall and edium i ed nterprise Cooperatives Act.

35

Annual Report FY 20 21I

cti ities

o ectso e eAfricaoan to f e im anC
IDaccine and ealthcare inance acility
I has provided insurance for a loan totalingD2
m il l io n to A f r i c a n
x po r t Imp or tan k(Afreximbank) extended by
G ank, td. anditsubishi
J Trust and anking Corporation. The
insurance is o ered in line with
I s AD Initiative.
Afreximbank, a pan African multilateral ﬁnancial
institution, is one of the main partners of the African
accine Acquisition Trust (A AT), a framework
established by the African nion for the purpose of
securing access to CO ID
vaccines. Through
A AT, the loan facility will be mainly used to ensure astable procurement of the vaccines in Africa. This loan
also employs the infrastructure fund schemeannounced by
I in December 2, leveraging
private capital from more thanJapanese
institutional investors, such as banks and life
insurance companies.
I and Afreximbank also conﬁrmed the future
strengthening of their partnership at the 2ndJapan Africa ublic rivate conomic orum held in
December 2 2 .
I will continue to support
business development in Africa by Japanese companies
in cooperation with Afreximbank consisting ofmember countries.

ederative epublic of ra il

Financino ect fo lon te m

I has provided an insurance for a loan ofDmillion extended to A AGGIO TA O I O TA OTDA (Amaggi), a major comprehensive agriculturalcompany in the ederative epublic of ra il, for its
long term working capital. The loan is co ﬁnanced byumitomo itsui anking Corporation andaribas,Tokyo ranch.
Amaggi is a leading ra ilian agribusiness company
engaged in processing, organi ation, and sale of grains,
as well as import and marketing of agricultural inputs
and mixing of fertili ers, along with its sister company
directly into the production of soybeans and corns
which are important grains for Japan in terms of foodsecurity. In 2 4,
I provided Overseas ntied oan
Insurance for a loan intended to advance the company s
agricultural development. pon request from Amaggi,
I provided an insurance for the reﬁnanced loan for
its long term working capital.
The conditions of the loan specify Amaggi to export acertain amount of grain to Japan during the agreement
period and make its best e ort to export to Japan inemergency situations.
The latest ood ecurity Guideline in case of mergency
developed by the inistry of Agriculture, orestry andisheries of Japan states that the Japanese government
will seek to maintain favorable relationships with the36

nsu ance

A AT is a framework which enables African nion
member states to jointly acquire CO ID
vaccines by pooling together the procurement
capabilities of each member state.
ate o si nin the insurance contract: ebruary

hoto pro ided by rican xport mport ank
hoto credit:
ank td.

oin ca ital ofmaifood exporting countries and build stable trade
partnerships with major exporters to minimi e theimpact on imports in a state of emergency. The projectaligns with the guideline and contributes in securing a
reliable food supply in Japan both by the government
and Japanese businesses.
As a policy based ﬁnancial institution of Japan,
Iwill continue to support projects that ensure a stable
distribution of food in Japan.
ate o si nin the insurance contract:

hoto pro ided by

RT

ay

1

RT

T

.

Arab epublic of Egypt

Samu ai on

ssue

t e

ate o si nin

the insurance contract:arch

cti ities
Insu ance

hoto pro ided by theyptian inistry o inance: Thembassador o apan toypt . . r. iroshi ka le t
and theyptian inister o inance. . r. ohamed
aait ri ht

opportunities in Africa for Japanese companies,
which will in turn contribute to sustainable growth in
the region by sharing their knowledge. As apolicy based ﬁnancial institution of Japan,
I willcontinue actively supporting Japanese companies intheir endeavors to expand overseas.

hoto pro ided by

o it

arch

FY2021 Financial Results

ate o si nin the insurance contract:e ationI has provided Overseas Investment Insurance
for an investment made by ojit Corporation ( ojit )in the gas retail business in the ederal epublic ofigeria ( igeria). This is a landmark project
supporting a Japanese company s entry into theAfrican energy market.
In this project, ojit acquired shares in Axxela
imited, which supplies gas to industrial customers inigeria, through Glover Gas
ower . . in theingdom of theetherlands, becoming the ﬁrst
Japanese company to enter the igerian gas retailmarket.
ith rapid growth expected in future,igeria s policy is to promote domestic use of gas ata national level while restricting thearing ofassociated gases, so that economic growth can beachieved while improving air quality.
Axxela and its a liated group companies provide a
steady supply of gas to over 2
industrial customers
in igeria, the nearby country of the epublic of Togoand otherest African nations. The group has agood reputation among its customers and has agreen mission it is switching the source of the energy
it provides to customers from diesel and heavy oil togas to contribute to a reduction in CO2 emissions
while expanding its business.
This project is expected to provide more business

out
I an
ani ational

as to in ust ial custome so uctso ect fo t e sale of cit

countries were willing to further strengthen their mutual
relations.
I is a member of the gypt Japan usiness andInvestment romotion Committee that was establishedaccording to the announcement made during the meeting
between . . r. Abdel attah l isi, the resident of the
Arab epublic of gypt, and . .
r. A
hin o, theormer rime inister of Japan, which was held on thesideline of TICAD in 2
. As a Japanese government
agency, with the Japanese government,
I will continue
to support the improvement of the business environment
and the promotion of business and investment
opportunities for the Japanese companies in gypt.

I

igeriatof e fo mance

ederal epublic ofe u lic of

I Re ie

I has underwritten insurance for guarantee
obligation provided by umitomo
itsui anking
Corporation for amurai bond issued by the Arab epublicof gypt ( gypt ) totaling J 6 billion.
unds raised by the amurai bond are going to be used
to ﬁnance the government subsidies to promote thereplacement or conversion of conventional high emission
gasoline vehicles cars, taxies and buses, to dual fuelvehicles using gasoline and natural gas, which isundertaken by the gyptian government as part ofmeasures to reduce CO2 emissions. The funds from theamurai bond are also going to be used to ﬁnance the costfor procurement of vaccine to combat CO ID
pandemic in the country.
This insurance is o ered in line withIs
AD
Initiative. It is the ﬁrst transaction as
I coveredﬁnancing to have fully utili ed the capital market resources,
involving more than 4 Japanese institutional investors, thenumber of which was the largest that
I has
underwritten to date.
This is also the ﬁrst amurai bond issued by the gyptian
government. nder the volatile ﬁnancial market situation
caused by global in ation, the kraine crisis and otherfactors, the transaction will contribute to the diversiﬁcationof ﬁnancing sources by the gyptian government.
On the day the amurai bond was issued, the ceremony
was held in Cairo by gypt Japan usiness Council tocelebrate the bond issuance inviting the gyptian inisterof inance and the Ambassador of Japan to gypt, . . r.
iroshi Oka, where it was conﬁrmed that both twoaorporation

37

Annual Report FY 20 21I

cti ities

o ectso e eederative epublic of ra ilS

ine acaoone lantThis project upgrades the facilities of an iron ore
production plant at a mine owned by C
ineracao.A. (C
ineracao), an iron ore production andsales subsidiary of a leading ra ilian steel producer
Companhia iderurgica acional .A. (C ). ITOC
Corporation (ITOC), J
teel Corporation (Jteel), and obe teel, td. ( obe teel) have invested
in the company. ITOC
is involved in the
management through sending of a director, while J
teel and obe teel has o take agreements topurchase iron ore produced by C
ineracao,
which they import into Japan.
I has provided an insurance for a loan ofD
3million extended to the project, co ﬁnanced byaribas, Tokyo ranch Citibank,.A., Tokyoranch Cr dit Agricole Corporate and Investment
ank, Tokyo ranch and ociete Generale, Tokyoranch.
Iron ore is the main raw material for producing steel
products that are indispensable to our daily lives, yetJapan relies entirely on imports from overseas. Given
the seaborne iron ore market s oligopolistic structure
dominated by major mining companies, it isimportant for Japanese companies to acquire
long term purchase rights from independentcompanies that will beneﬁt Japan in securing a stable

Mongoliae38laan aata nte national

itsubishi Corporation ( C), arita International
Airport Corporation ( AA), Japan Airport TerminalCo.,
td. (JAT) and JA
Inc. (JA) haveestablished a joint venture company with theongolian government, through which they engage inthe operation ofew
laanbaatar International
Airport (o cial name Chinggis haan International
Airport) for
years starting from July 4, 2 2 .
Iprovided Overseas Investment Insurance forinvestments made by C, AA, JAT and JA
forthe project.
ongolia has been served by uyant khaaInternational Airport (former Chinggis
haanInternational Airport) from, which went througha series of runway extensions and renovations. To
meet the increasing demand, building and operatingof a new airport was planned.
ith medium tolong term growth expected primarily in the capital
city of laanbaatar, which is a prominent political,
economic and commercial center of the country, theongolian government positions the new airport as avital infrastructure and a critical hub for passenger
and freight transportation inortheast Asia. The
project is anticipated to contribute to thedevelopment of ongolia specially in the tourism anddistribution industries.
This is the ﬁrst project under the assistance of
inistry of and, Infrastructure, Transport andTourism in which AA will engage in the operation ofan airport located outside of Japan. The Japanese

nsu ance
a in

o ect

supply of resources. A portion of the loan will also be
used to replace the conventional tailings dam with aﬁlter press (a facility to dewater tailings), which willallow C
ineracao to enhance the safety of its
mining operations.
y supporting the project,
I aims to help securea stable supply of natural resources and energy to
J ap an an d to fu r th e r p r o m o te th e global
development of Japanese companies.
ate o si nin

the insurance contract:

hoto pro ided by Ti ot

e ationay

1orporationo ectgovernment has been extending an integrated
assistance for the project, such as funding via ODA(O cial Development Assistance) loan extended by
Japan International Cooperation Agency (JICA) forthe construction of the new airport, and facilitation of
the project throughI s Overseas Investment
Insurance.
I s support for the project is expected topromote the global development of Japanesecompanies in the ﬁeld of aviation infrastructure
system and to further the close ties between Japanand ongolia.
ate o si nin

hoto pro ided by

the insurance contract: ulyelaanbaatar nternational irport1

n inee in
ocu ement onst uction an ommissionin
ns o eFacilities of t e o t Fiel ast o ect

State of atarfolargest1

cti ities

ctoberI

ate o si nin the insurance contract:of e fo mance

G supplier.
project will include a large CO2 Carbon
Capture and equestration facility, leading to morethan 2
reduction of Green ouse Gas emissions
when compared to similar
G facilities.
It is estimated that global demand for natural gas willcontinue to grow, since urning natural gas for energy
results in fewer emissions of nearly all types of air
pollutants and carbon dioxide (CO2) than burning coalor petroleum products to produce an equal amountof energy. aking it today the most environmentallyfriendly energy source among fossil fuels.
This project is expected to further strengthen therelationship between Japanese companies andatar.

I Re ie

I has provided xport Credit Insurance for a
project consisting of engineering, procurement,
construction and commissioning for OnshoreGacilities of the orth ield ast roject () in thetate of atar ( atar). This project was awarded to
CTJ , a joint venture between Chiyoda Corporation
and Technip nergies by atar nergy, a state owned
oil company in atar.
This project covers the delivery of 4 megaG
production trains, each with a capacity of
milliontons per annum ( tpa ) of iqueﬁed atural Gas(
G ), and associated utility in as a an Industrial
City, atar s main site for
G production. The newfacilities will receive approximately 6 billion standard
cubic feet per day of feed gas from the astern sectorofatar s orth ield. The expansion project willproduce approximately 33 tpa of additionalG,
increasing atar s total production fromtotpa.
roject will make the country the world s

Insu anceo uctsout
I an
ani ational

hiyodaorporatione ationhoto pro ided by

FY2021 Financial Results

39Annual Report FY 20 21I

cti itiesSo ts
o t of

ic

olle

o e e

nsu ance

meletumiba Trading Co., td. ( umiba Trading) inagoshima City, agoshima refecture, used xport
Credit Insurance fors and Aector for theexport of thick rolled omelets to the nited tates ofAmerica ( ).
As a leading local trading company in agoshima,umiba Trading exports a variety of products notbound by genre, mainly food, all over the world
includingorth America, outheast Asia, Taiwan,
India, and urope. The company recently received anenquiry about the export of food from a . . buyer on
the condition of a deferred payment.
or thistransaction, it used trade insurance for the purpose ofhedging the associated risk throughI introducedby The agoshima ank, td.
umiba Trading will continue to use trade insurance
and contribute to the development of agoshima
through trade with foreign countries.

hoto pro ided byumiba Tradin

hoto pro ided byrakaki Tsusho

o.

td.

xport alue co ered by the insurance: boutmillionate o si nin the insurance contract: ebruaryo t ofosmetics

Arakaki Tsusho Corporation (Arakaki Tsusho) in
aha City, Okinawa refecture, used xport Credit
Insurance fors and Aector to mitigate therisk of non payment of prices under the agreement for
the export of cosmetics to Taiwan.
Arakaki Tsusho, which was founded in,disseminates Japanese products mainly produced in
Okinawa around the world by taking advantage of its
strengths, such as support speciﬁc to a local trading
company, development of locali ed products, andadaptability to changing times. The company was
selected by the
inistry of conomy, Trade andIndustry as one of the Companies Driving egional
Growth that could be expected to contribute toregional economic growth in 2
, and contributes
to the economic development of Okinawa with its
geographic advantage of being located in the centerof ast Asia, outheast Asia and the mainland ofJapan.
Arakaki Tsusho will continue to use trade insurance
to develop overseas markets and disseminate thecharm of products made in Okinawa to the world.
xport alue co ered by the insurance: boutmillionate o si nin the insurance contract: ebruary

40

orporation

o t of n ectionol in

ac ines
I Re ieof e fo manceI
cti ities

hoto pro ided byii ataachine Techno

o.

td.

o.

td.

Insu ance

iigata achine Techno Co., td. ( iigata achineTechno) in
iigata City,
iigata refecture, used
xport Credit Insurance peciﬁc Insurance to mitigate
the risk of non payment of prices under theagreement for the export of injection molding
machines to the eople s epublic of China.
iigataachine Techno, which was founded in, manufactures and sells machine tools andinjection molding machines, as well as provides
after sales services for those products in Japan andoverseas. Its high precision electric injection molding
machines won the Agency for atural esources andnergy Commissioner s Award in recognition of theexcellence of energy saving machines and systems.
The export of injection molding machines is expected
to help users reduce their environmental burden, andto contribute to the achievement of the DGs throughthe development in mono ukuri (manufacturing).
To enrich the lives of people around the world,
iigataachine Techno will continue to use tradeinsurance to provide technologies andhigh value added products and services needed byvarious countries and industries.

o uctsxport alue co ered by the insurance: boutmillionate o si nin the insurance contract: o ember1

om onents fo

hoto pro ided byashimaFY2021 Financial Results

xport alue co ered by the insurance: boutate o si nin the insurance contract: prila se ationTokyo based ashimaCo., td. ( ashima) used
xport Credit Insurance fors and Aector forthe export of interior components for railroad cars tourope (free stop roll curtain related products).
ashima is a speciali ed trading company foundedin
4 that engages in the sale, import, and exportof railroad related products and electronic parts forindustrial machinery, as well as in the provision ofancillary services, with a focus on transport
infrastructure, especially in the railroad sector.
ashima s railroad related business widely covers
both electric and mechanical parts/equipment for
railroad cars.
The company decided to use trade insurance forthe export of interior components designed forrailroad cars that were to be manufactured andoperated in urope, the business being on theirstrongness as parts supplier in global railway industry.
ashima will continue to use trade insurance todeliver products worldwide through its global supply
chain.

ail oaout
I anani ationalo t of nte io. million
1

41

Annual Report FY 20 21IS

cti ities

o ts

o e e

nsu anceo t of Sa e
Tatsuuma onke rewing Co., td. (Tatsuuma onke
rewing) in
ishinomiya City,
yogo
refecture,exports sake to orth America, outheast Asia, andurope, and has continued to use trade insurance
since its ﬁrst use of xport Credit Insurance forsin 2 2.
Tatsuuma onke rewing is said to have started thesake brewing business in 662 at the time of Ietsuna,
the fourth Tokugawa shogun. ven among popularsake known as udari ake produced in ada andishinomiya areas in the mid do period, akushika
established a solid position as high quality sake ofada at the end of the Tokugawa shogunate. 3
years have passed since then, and the company stillengages in the manufacture and sale of sake andother liquors including its hallmark product, akushika.
Tatsuuma onke rewing will continue to use tradeinsurance to deliver the charm of sake to tables
around the world.
xport alue co ered by the insurance: boutate o si nin the insurance contracts: prilo t of a anese

1 million
1 and others

hoto pro ided by Tatsuuma

onke

re in

o.

td.

ea

atcha aori Japan Co., td. ( atcha aori Japan) in
amamatsu City, hi uoka refecture, used xport
Credit Insurance peciﬁc Insurance for the agreement
for the export of Japanese tea to the epublic of eru.
atcha aori Japan, which was founded in 2 4, isan export and distribution company speciali ing inJapanese tea. It engages in product planning,
manufacturing, and export under contracts with tea
manufacturers and processors in Japan, mainly inhi uoka. In 2
, the company changed its coreproducts to organic powdered green tea (matcha) andexpanded its distribution channels mainly into exico.
It additionally started to develop the market in eru,
another panish speaking country.
hen it received
the ﬁrst order from eru in the spring of 2 2 , atcha
aori Japan, as a small scale entrepreneur company,
felt uneasy about whether it could properly collectpayments. In this situation, it decided to use tradeinsurance through amamatsu Iwata hinkin ank ( ),a partner ﬁnancial institution ofI, which led todevelopment of new market without worry.
atcha aori Japan will continue to use tradeinsurance to distribute Japanese tea and otherproducts with Japan s high traditional and culturalvalue to overseas markets based on its distribution
channels for Japanese tea in outh America.
amamatsu Iwata hinkin ank entered into a
partnership withI in eptember 2 4.
xport alue co ered by the insurance: boutate o si nin the insurance contract: pril

42

1

millionhoto pro ided byatcha

aori apano.

td.

o t of

an

allet

uc s

I
cti ities

kudaya

iken

o.

td.

ippon Re neo.

o uctshoto pro ided by

Insu anceo t ofof e fo mance

xport alue co ered by the insurance: bout
. million
ate o si nin the insurance contract: arch

I Re ieOkudaya Giken Co., td. (Okudaya Giken) in akaiCity, Osaka refecture, used xport Credit Insurancefors and Aector as a means to mitigate therisk of non payment of prices in export to the Islamic
epublic of akistan.
Okudaya Giken, which was founded in
34,
manufactures material handling machinery with afocus on hydraulic pumps, and it is consistently inpursuit of how it can help its customers smoothly
fulﬁll their actions of transporting without stress byproposing tailor made products based on what its
customers are concerned about.
In appreciation of those e orts, it won the ibrant
A ATA
mall and edium nterprises 3
fromthe mall and edium nterprise Agency, inistry of
conomy, Trade and Industry in December 2 2 .
tarting with the ﬁrst export to Taiwan about 4
years ago, Okudaya Giken continues to support
transporting in warehouses and factories in about
3 countries.
Okudaya Giken will continue to use trade insurance
to develop the overseas market and support
stress free transporting around the world.

anic Sol ents

e ationFY2021 Financial Results

xport alue co ered by the insurance: boutate o si nin the insurance contract: pril

out
I an
ani ational

Tokyo based ippon eﬁne Co., td. ( ippon eﬁne)used xport Credit Insurance peciﬁc Insurance toprepare for the risk of non payment of prices in theexport of organic solvents to the ingdom of Thailand.
ippon eﬁne, which was founded in
66 for the
purpose of recycling used solvents, operates thebusiness of reﬁning and recycling solvents, as well as
the environmental engineering business of designingand producing equipment that collects solvent
components contained in gas and water discharged
from factories with a high degree of e ciency. The
company won various awards, including theinister s Award from the inistry of conomy, Tradeand Industry in the 3rd co ro Awards for its
circulation system through upcycling in theenvironmental engineering business. The system is tocollect, reﬁne, and recycle
gas exhausted in theprocess of manufacturing lithium ion batteries byusing its know how cultivated in the reﬁnement andrecycling business. This is an example to show
ippon eﬁne contributes to society through its
business operations for resource circulation andenvironmental preservation.
ippon eﬁne will continue to use trade insurance
for further overseas expansion.

hoto pro ided bytd.

million1

43

Annual Report FY 20 21IS

cti itieso ts
o t of F o en

o e e
ste s

iroshima oichiba., td. ( iroshima oichiba) in
iroshima City, iroshima refecture, used xport
Credit Insurance fors and Aector for theexport of fro en oysters from iroshima to Taiwan.
As a wholesaler of the ﬁshing division of theiroshima City Central
holesale arket, iroshimaoichiba picks up marine products from producers
and shippers in Japan and abroad and distributes
them to intermediate wholesalers. The company
started to export oysters from iroshima in 2
andhas expanded its distribution mainly in the Asian
region.
or an enquiry about this export, the Taiwanesebuyer proposed that the payment terms be changed
from the conventional prepayment to a deferredpayment partly due to the impact of CO ID. As aresult, iroshima oichiba used trade insurance forthe export throughI introduced by The iroshimaank, td.
iroshima
oichiba will continue to use tradeinsurance, intending to stand by local ﬁsheryoperators and aggressively carry out its activities thatwill lead to the revitali ation of the regional economy,
with continued support for ﬁsheries as a motto.
xport alue co ered by the insurance: boutmillionate o si nin the insurance contract: eptember
144

nsu ance

hoto pro ided byiroshima

oichiba.

td.

Insurance

roductsrade and Investment Insurance
ow It or s
Insurance roducts to Support
our usinessInsurance Application rocess
O ICS

45

Annual Report FY 20 21

Insu ancea e ano uctsn estment nsu ance

Trade and investment insurance covers risks
associated with international trade and otheroverseas transactions that cannot be covered byprivate sector insurance.
The purpose of trade and investment insurance is

00

t

o s

to support and promote companies on overseas
business development by mitigating the risks
associated with foreign trade and overseas
investment.

E port, investment,
nancing, etc.

Insurance
contract

equityoa anesecom ano e nmentof a anFo ei nount
Fo ei ncom ane seaso ectTrade and investment insurance covers losses incurred by Japanese companies, banks, etc. due to theoccurrence of the following risks.

o litica l Risom m e c ial Ris

Restriction or pro ibition on oreign
exc ange transactions restriction or
pro ibition on imports
ar civil war revolution
Delay in t e remittance o oreign currencies
attributable to t e paying country
unitive tari s terrorism
Sanctions imposed by t e UN or countries
ot er t an destination countries
xpropriation
Natural disaster or any ot er state oemergency w ic cannot be considered
attributable to t e party to t e contract

Non payment by t e counterparty ormont s or more(except or cases w ere t e exporter isdeemed liable or claims made by t e
counterparty suc as damage and de ects)
an ruptcy o t e counterparty
Ot er reasons e uivalent to ban ruptcy
Unilateral cancellation o export contracts
wit oreign governments etc be ore
s ipment
Unilateral cancellation by a private buyer prior
to s ipment is not covered except or cases
w ere a special clause is attac ed

ent occu s

he follo in losses a e co e ee shi ment Ris
osses incurred due tofailure to ship

oliticalisk

Commercial

46

ost shi ment Ris

e seas In estment Ris

osses incurred due tofailure to collectreceivables, service fees,or loansosses on investment
assets as a result of
discontinuation orsuspension of a oint
ventureisk of force majeure for which the insured party is not liable (also referred to as Country isk)
isk

isk for which the counterparty to an overseas transaction can be deemed liable(also referred to as Creditisk)nsu anceo to ucts to Su

e it nsu ance

Insu ance fo e

o t inte me ia

t a e anouusiness

technical coo e ationand natural disasters, or ii) inability to ship goods due tobankruptcy of the business partner, etc., as well as
losses resulting from inability to collect payment after
the goods have been shipped or after the technology
has been provided.

I Re ie

In cases where Japanese exporters export goods toforeign countries, engage in intermediary trade, or
provide technology such as construction work, thisinsurance covers losses due to i) force majeure suchas war, revolution, terrorism, import restriction/prohibition,otof e fo manceote it Insu anceIot

Fo ei nIm o tea aneseo teInsu ance

nable to collect receivables

cti ities

nable to e porto uctsInte me ia

a enable to collectreceivables

Fo ei nIm o teount B

There are di erent ways of providing xport Credit Insurance such as speciﬁc insurance, which provides
coverage for a single business contract, and comprehensive insurance for business entities, which
provides coverage for all contracts of a company within the scope of the policy.

Insu ance fo

icenseo t IntellectualIntellectual
ropertyicense Insurance covers
losses incurred if Japanese companies that provide
patents, expertise, or copyrights abroad are unable tocollect payment of license fees such as royalties dueo etFY2021 Financial Results

a aneseInte me ia
a ee ationnable to ship

out
I an
ani ational

Fo ei nanufactu e
ount

icense Insu anceto i) force majeure such as war, or ii) the counterparty sbankruptcy or delay in payment.

47

Annual Report FY 20 21

o uctsa e nsu ance fo Stan ine s f om S eci c u e s

Insu ance fo com anies that continuall con uct

The losses covered by this insurance are the sameas those covered by xport Credit Insurance.

ount
Bu e

ount BBu e 2Credit risk ofe porter s subsidiary
B is not covered.
ount
Bu e 1（Subsidiary）

B

a anese
o te
etc.

om

e ensi e

Coverage may
be unavailable
depending on
country
category or
buyer category.

(Not covered due
to buyer category)o t nsu ance

(Not covered due
to country category)it Sim li e

Insu ance fo com anies that continuall an
multi le u e sThis insurance comprehensively covers all export
contracts, etc. concluded by Japanese exportersthat meet certain conditions during the insurance
contract period ( year). The xporter notiﬁes
Iof the payments owed for shipped goods based on
the export contract, etc. by the end of the next
month after shipping.
The exporter does not need to apply insurance

ount
Bu e

ount
Bu e 2oce u ee eate l con uct

usinessith

for each export contract. Changes to terms andconditions of the contract are also less likely toarise since the notiﬁcation is made after shipment.
The application procedures are therefore simpler
than for other types of insurance.
The losses covered by this insurance are the sameas those covered by xport Credit Insurance.

a aneseo te
etc.
Comprehensive E port
Insurance with Simpli ed
rocedureount
Bu e 1ount
Bu e 2

ount
Bu e

B

Credit risk of exporter s subsidiary is not covered.
Coverage may be unavailable depending on country
category or buyer category.

48

E I s coverage

ount
Bu e

u es

Scope of coverage sought bye porterount BBu e 1ith s eci c

insurance for each export contract. All insurable
export contracts signed during the insurance contract
period ( year) are automatically covered if thecontracts meet certain conditions.

This insurance is suitable for continuoustransactions with a speciﬁc buyer for a Japanese
exporter to supply products, etc. The exporter sets a
limit on insurance claims for a speciﬁc buyer based on
the estimated value of transactions for the year.
The insurance also features simpliﬁed application
procedures. The exporter does not need to apply
Trade Insurance
for Standing rders
from Speci c uyers

usiness

E I s coverage

Insu ance

o te it nsu ance fo S

Insu ance fo e o t
a anese S
fo estan
she ies secto

s an

s an

usinesses in the aicultu eof e fo mancea aneseSo FF
Businesses

I Re ieof insurance claims to meet the needs ofandA
customers. urthermore, applicants for thisinsurance who also receive a bank loan cansimultaneously complete procedures to establish apledge on insurance claim rights.

This insurance provides support for export by
Japanese small and medium si ed enterprises (s)
and by businesses in the agriculture, forestry, andﬁsheries (A ) sector. The policy covers losses
incurred if receivables are uncollectable, also o ering
simple application procedures and speedy payment
E port Credit Insurance
for SMEs and A
SectorFF Secto

E port goods
Fo ei nBu enable to collectreceivablesIa aneseBan

日本の銀行
Create pledge

cti itiesoanInsu anceo t ill nsu ance

out
I an
ani ational

Send bill

E port ill Insurance

Fo ei nollectinBannable to remit

e ationa aneseBan etc.

resent bill

Bill

a e

E port Contract

Fo ei nIm o te

Bill

a ee

e a ment m o t nsu ance
This insurance covers losses incurred if Japanese
importers make a prepayment for goods inaccordance with the contract terms but the goods do
not arrive in accordance with the contract and the
prepayment is not refunded even after the importers
make a refund request for the prepayment in

FY2021 Financial Results

nable topayequest negotiation of billa aneseo teo uctsbills issued to recover export costs, the insurance
covers losses if the bills are not paid due to i) force
majeure such as war, revolution, prohibition offoreign currency exchange, suspension of remittance,and natural disasters, or ii) bankruptcy of the foreignimporter, etc.

This insurance is mainly designed to cover the riskof non payment at maturity by the buyer to the bankthat has purchased the documentary bill without aletter of credit. This enables a smooth process for thepurchase of the documentary bill by the bank. In
cases where a Japanese bank purchases documentary

accordance with the refund terms, due to i) force
majeure such as war, revolution, prohibition offoreign currency exchange, suspension of remittance,and natural disasters, or ii) bankruptcy or default of
the counterparty.

49

Annual Report FY 20 21

Insu anceu e so uctse it nsu ance

Insu ance fo loans etc. such as fo

a ment of e

In cases where a Japanese bank or ﬁnancial
institution
provides a loan, etc. (including thepurchase of bonds and the assumption of guarantee
obligations) to a foreign importer purchasing goods
and services from Japan, this insurance covers losses
incurred if the Japanese bank is unable to receive
repayment of the loans or bonds due to i) force
uyer s Credit
Insuranceo t oo s Bu e se itmajeure such as war, revolution, prohibition offoreign currency exchange, suspension of remittance,
terrorism, and natural disasters, or ii) bankruptcy ordefault of the importer. The terms and conditions forthe loan agreements, etc., must comply withinternational rules.

oan, etc.

a aneseBan etc.
BI

Fo ei nIm o tenable torepay

E portcontract, etc.

a aneseo te

I provides the insurance only to Japanese commercial banks that extend loans, etc., in cooperation with
the Japan ank for International Cooperation (J IC).

e seasntie

Insu ance fo loan ooan nsu anceonu chase fo o e seas

This insurance covers losses incurred by Japanesecompanies, banks, and other institutions
thatprovide a foreign government or company withbusiness funds (which are not tied to export fromJapan) for overseas projects that contribute toeconomic development, or that purchase bonds
issued by a foreign government or company for theverseasInsuranceo ectspurpose of ﬁnancing, if the loans or the bonds are notredeemed due to i) force majeure such as war,
revolution, prohibition of foreign currency exchange,suspension of remittance, and natural disasters, or ii)
bankruptcy or default of the borrower or the bondissuer.
Fo ei no e nmento om anntied oan

nable to repay

urchase loan bondInsu ance fousiness oa aneseom an oBanua antee of o li ation

This insurance covers losses incurred by Japanesecompanies, banks, and other institutions thatguarantee the borrowing, etc., of overseas subsidiaries
and foreign governments and companies (theborrower), if the Japanese entities are forced to fulﬁll

their obligations because the borrower fails to repay
its borrowing due to i) force majeure such as war,
revolution, prohibition of foreign currency exchange,suspension of remittance, and natural disasters, or ii)
bankruptcy or default.

Debt guaranteeverseas ntied
oan Insurance

a aneseom an oBan

Ban

Fo ei n
om an

oan,
etc.

nable to repay

Overseas
Subsidiaryoint enture etc

I may provide coverage to foreign companies or banks, etc. that ﬁnance projects particularly necessary forpromoting the sound development of Japan s international trade (e.g., projects that promote the acquisition ofimportant resources and the competitiveness of Japanese companies).

50

I contributes to aiding overseas deployment of infrastructure systems and securing a stable supply of natural
resources and energy of Japan, as well as to various policies of the Government of Japan, by taking a variety of
initiatives and developing new products.

Initiati e

een Inno ation

oan Insu ance fo

atu al Resou ces anverseas esourcero ect Company, etc.
Bo o inSenio loan s ecial clauseSu o inateoanroceeds fromresource sales, etc.

Sha ehol e suit

sc o account at a anin e elo e count ies

a aneseBan etc.

verseasntied oanInsurance

epayment

This insurance is eligible for senior loans o ered by Japanese banks or ﬁnancial institutions for projects involving
Japanese companies in the o take of energy and mineral resources, acquisition of interests, or development ofrelevant infrastructure .
In addition to o take projects in which Japan is the ﬁnal demand location, it is applied to projects in whichdeveloped energy resources, etc. is highly likely to be transferred to Japan following a request from Japan.
A lower premium rate compared to regular Overseas ntied oan Insurance is applicable only when an escrowaccount is opened with a bank in a developed country. hen no escrow account is opened, the premium rateof regular Overseas ntied oan Insurance will be applied, but a higher percentage of commercial risk coverage( .
) will be granted.

FY2021 Financial Resultso uction Facilit
inin oncessionJapane ationne
Resou ces
ine al Resou ces

oan

out
I an
ani ational

ta e
etc.

take,
etc.

companies, banks, and other institutions that provide
foreign governments or companies with businessfunds (which are not tied to export from Japan) for
projects that contribute to resource development, if
the Japanese entities are unable to collect the loan
due to i) force majeure such as war, revolution,prohibition of foreign currency exchange, suspensionof remittance, and natural disasters, or ii) bankruptcy
and default of the borrower.

o uctsJapan

ne
Insu ance

To fundamentally reinforce e orts to secure astable supply of resources from overseas, Investment
and oan Insurance for atural esources and nergy
takes into account the distinctive risk proﬁle ofnatural resources and energy projects. It features amuch lower premium rate and wider range of risk
coverage than regular Overseas
ntied
oan
Insurance, and is available as a special clause toOverseas ntied oan Insurance.
This insurance covers losses incurred by Japanese

cti ities

In estment anloan insurance is available for Japanese exporters,
Japanese companies that undertake the projects, orJapanese ﬁnancial institutions that ﬁnance them, if
they proactively disclose information on theirmeasures aimed at environmental conservation andclimate change mitigation.

I

This insurance covers renewable energy projects,
energy conservation projects, and projects utili ing
new technologies that contribute to global
environmental conservation, with an increased
commercial risk coverage rate up to.
comparedwith our usual loan insurances such as uyer s Credit
Insurance or Overseas ntied oan Insurance. Thisof e fo mance

oan Insu ance fo

this initiative, we aim to underwrite insurance of total
value of J
trillion by the end of ﬁscal 2 2 , while
diversifying our funding sources not only fromtraditional capital providers, but also frominstitutional investors etc.

I Re ie

In December 2 2 ,I announced theAD
Initiative to respond to the business environment withand after the Covid. This initiative is intended toactively promote the underwriting of projects, with afocus on contributing to global carbon neutrality,
solving social issues and achieving the DGs. nder

51

Annual Report FY 20 21

Insu anceo uctse seas n estment nsu ance
Insu ance fo in estment e uit in estment etc.
subsidiaries are unable to remit dividends to Japandue to prohibition of foreign currency exchange orsuspension of remittance.
This insurance can cover a broader range of risks
with various special clauses.

This insurance covers losses incurred by Japanesecompanies with a subsidiary or a joint venture in aforeign country if the subsidiary or joint venture isforced to discontinue business due to force majeuresuch as war, terrorism, and natural disasters. The
insurance also covers losses incurred if overseas

verseas Investment Insurance
Investment

Fo ei na aneseom annable to remitom anOverseas Subsidiaryoint enture etc

usiness activities
discontinued, etc.

A premium (goodwill, etc.) paid by an investor to secure a stake in natural resources or to
become a shareholder can be covered by Overseas Investment Insurance.
Another type of Overseas Investment Insurance that covers rights and acquired proﬁts (realestate, etc.) is also available.

a tial oss S ecial

lause

hen a subsidiary of a Japanese company
conducts business by establishing sub subsidiaries ina country where the subsidiary is located or in third
countries, respectively, this insurance covers losses if
any of the sub subsidiaries are forced to discontinue

business due to force majeure such as war, terrorism,
and natural disasters, even if the othersub subsidiaries are able to continue business.

CountryCountry A
Investment
Su su si ia

verseas Investment
Insurance

usiness activities
discontinued, etc.

Su si ia
Investment
a aneseom an

52

Country
Investment
Su su si ia
BBusiness Base S ecial

lause
due to force majeure such as war, terrorism or natural
disasters, even if the other business bases are able tocontinue business.

hen a subsidiary of a Japanese company has
business bases in a country where the subsidiary is
located, this insurance covers losses if any of thebusiness bases are forced to discontinue business

I Re ie

Countryverseas Investment
Insurance
Investment

Su si iaa aneseom anof e fo manceusiness
activities
discontinued,
etc.

Facto

Facto
B
I
cti ities

Singapore,e seasSu si ia

Investment

ong, Thailand,

Sales contract,

ietnamBu ee ationInsurance contract

FY2021 Financial Results

a aneseasualtInsu anceom aneinsurance
contract

Country

E port contract
Intermediary trade

out
I an
ani ationala aneseom an

ong

inability to collect receivables if the buyer goesbankrupt or the payment is delayed.
e call it fronting as
I provides the coveragethrough reinsurance with local Japanese casualty
insurance companies that distribute our insurance
products.

o uctsor cases such as where a Japanese subsidiary iningapore,ong
ong, Thailand, the. ., andietnam has an export contract with a domestic oroverseas buyer for continued sale of products, etc.,
the maximum liability is set for the annual trade
amount. This primarily covers losses resulting from

Insu ance

F ontinBu e

53

Annual Report FY 20 21

Insu anceo uctsnsu ance

lication

ocess

l in fo Insu ance
The chart below describes the summary of insurance application procedures for xport Credit
Insurance.
ome aspects may vary depending on the type of insurance.

e

Registration is re uired
or a rst time user oinsurance to obtain an
insurance user code(s ipper code)
Re registration is not
re uired or t ose
already registeredBu ee ist ation

E port contract dateshi

Consideration on terms and conditions

Insu ance use
e ist ation

Calculation of premiums

uyer credit review
credit rating registration

54

egistered

Also note t at our
screening procedures or
lo a n a g r e e m e n t s a n doverseas investments wit
a maturity o two years ormore re uire a certain
period o time and werecommend t at you consult
wit us at an early stage oyour pro ects

nregisteredlease allow yoursel
enoug time to complete
your application process

Con rm buyer registration status

Insurance user shipper registrationrior consultation

io consultationrior to t e applicationor our insurance we willc ec
w et er yourtransaction counterparty(counterparty to export
contract or payer includingan
C issuing ban ) isregistered or not I t ey
are not registration will
be re uired

e io

I
cti ities

ostshipment
periodInsu ance

ayment due dateolicy e piration datereshipment
periodShipping dateolicy e ective dateo uctsInsurance application dateInsurance contract date

Elimination
perioddays

Coveragefor non-payment risksof e fo mance

Coveragefor pre-shipment risks

I Re ie

olic

out
I an
ani ational

e io

FY2021 Financial Results

ou need to apply or
insurance a ter t e export
contract date wit in ve
business days rom t es ipping dateInsurance policy will
become e ective a ter t eapplicatione ationlication

55

Annual Report FY 20 21

Insu anceo uctsnsu ance
Insu ance

licationocesslaim a ment

The chart below describes the summary of claims payment procedures for xport Credit Insurance.
ome aspects may vary depending on the type of insurance.

ele ation of autho it toIen ma ing an insurance claim t e insured
needs to delegate to N I t e aut ority to exercise
all rig ts as a creditor under t e export contract

oss prevention andmitigation obligations
Deadline for insurance claim

Delegation of authority to E I

Insurance claim

enyoubecomeaware o any event t at
may lead to a loss be oret e payment due date
you must noti y N I ot e event wit indays

Deadline for noti cationof occurrence of loss

Date of occurrenceof insured event

ccurrence of eventthat may lead to loss

Insurance contract dateoti cation of e ent
that ma lea to loss

Claimspayment

oti cation of occu enceof loss
en you become aware t at
you ave su ered a loss you
must noti y N
I o t eoccurrence o t e loss inprinciple wit indays rom t edate on w ic
you becomeaware o t e occurrence o t eloss (t e date o occurrence oinsured event)In principle claims
payment will be madewit in mont s romt e date o insurance
claim

aris Club - a solution for debt recovery
e aris Club is a meeting w ere ma or creditor countries gat er to discuss and nd wor able solutions
to payment problems aced by debtor countries Since its inception inas an in ormal group wit nolegally binding orce t e aris Club as carried out its activities based on t e aris Club rinciples
At t e aris Club debt relie (resc eduling etc ) is discussed wit t e government o debtor countries orw ic debt payment as become di cultroug suc debt relie and resc eduling creditor countries areable to ensure debt recovery rom debtor countries t at do not ave su cient oreign currency
ile t erepayment sc edule may be prolonged t e process enables airness to be maintained between creditor
countries

56

I Re ieof e fo mance

Ma imi e
E pedite
Enhance e ciencyI
cti ities

Ensuring recovery
through various measures

Distributionof recoveries

Completionof recovery activity

Insu ance

ecovery phaseo uctsoiate eco eolica ties con uctin

eco eli ation to coo e ate in eco e

e o tsen instructed by N I to ta e necessary measures or recoveryt e insured as an obligation to comply wit t e instructions(Cooperation in recovery e orts)
ven in cases w ere actual recovery activities are conducted by
N I s partner collection agencies N I may re uest t e insured tocooperate in t e recovery e orts

FY2021 Financial Results

N I s partner collection agencies
Insured (N I s customers)
N I and t e Government o apan (t roug negotiations wit debtor
countries at t e aris Club etc )e ationN I determines t e recovery policy a ter t e insured ma es t e
insurance claim

out
I an
ani ationalete mination of a57

S

Enhancement of oan
Insurance for reen Innovation
I has actively supported the private sector s measures for environmental protection and climatechange mitigation. The amount underwritten in these ﬁelds has amounted to J
2billion or more since
2 6.
ased on the announcement in October 2 2 to strengthen the functions of oan Insurance for Green
Innovation,
I provides preferential premiums to projects to which the insurance is applied by changing
its risk assessment method. Through this initiative,
I is further increasing support for innovativetechnologies that contribute to the development of the renewable energy sector and the protection of global
environment.

oan Insu ance fo
a anesecom anE portInvestment

omme cialaneen Inno ationo ect utili inen i onment elatetechnolo ies

Applicable pro ects

Rene a le ene
olar, wind, geothermal, water, etc.

ne

oan

conse ation

aste heat recovery system, etc.

Inno ati e technolo iescont i utin to en i onmental
otectionoan Insurance forreen Innovation

Carbon Capture, sage, and torage(CC ) Technology
ydrogen and fuel battery related
technologies, etc.

efe ential t eatment on
een Inno ation

emiums in oan Insu ance fo

e conduct proactive risk assessment in the screening of projects applicable to this insurance (theaddition of points).
This enables us to provide a higher credit rating and, as a result, o er preferential premiums.
oints added for a pro ect
applicable to this insurance

remiums of oan Insurance forreen Innovation
olitical risk
premiums

ro ect ratings
ro ect ratingow

ro ect rating 2

Credit+ Commercial
risk premiums
referential
premiums

igher ratingro ect ratingro ect rating

Credit isk

ro ect rating 0igh58About N I and
Organi ational Operationro le o N
usinessI

lanusiness Operation andanagement System

Organi ation C art
O ces
O ICS

59

Annual Report FY 20 21

out

I an

ani ationale ationo le of
Organi ationame

ippon xport and Investment Insurance

Date of stablishment

April , 2Act

Trade and Investment Insurance Act

urposeTo conduct insurance business to cover risks which arise in foreign transactions not covered byordinary insurance

Competent

inisterThe

inister of conomy, Trade and Industry

CapitalJ

6 ,3 2,324,36 (xecutive O cers

Chairman and C O
residentenior

tate owned)
Atsuo uroda
eiji adaanaging xecutive O cer,anaging xecutive O cer,

ember of oardember of oardember of oarda uhikoishinoideo Teramoto

Audit

upervisory oardember ( ull Time)

eishi

Audit

upervisory oard

ember

TomoyoAudit

upervisory oardember

akamuraatsui

ouichi Takei

umber of mployees

22 (as of April , 2 22)

cope of usiness) To conduct trade and investment insurance business operations complying withthe provision of Chapter III of the Trade and Investment Insurance Act.
2) To conduct business incidental to the business stated in ) above.
3) To underwrite reinsurance for international institutions, foreign governments orforeign companies who underwrite insurance (including reinsurance) whichindemniﬁes losses similar to the losses covered by the trade and investment
insurance, for the liability incurred by such insurers.
4) To underwrite reinsurance for Japanese insurance companies who underwrite
insurance (excluding ordinary insurance) other than the trade and investment
insurance deemed necessary to carry out the purpose of sound development offoreign transactions as prescribed by Cabinet Order, for the liability incurred bysuch insurers under the said insurance.
) To cede reinsurance of the liability held by
I under the Trade and Investment
Insurance Act to international institutions, foreign governments orforeign companies who underwrite insurance (including reinsurance) which
covers the risks similar to those covered by the trade and investment insurance.

rief

Jul.
Dec.
Apr. 2

istoryJul. 2
Apr. 2nactment of Act on General ules for Incorporated Administrative Agency
nactment of Act evising a ection of the Trade and Investment Insurance Act
stablishment of ippon xport and Investment Insurance (I) as an Incorporated
Administrative Agency
nactment of Act evising a ection of the Trade and Investment Insurance Act
stablishment of ippon xport and Investment Insurance ( newI) as aspecial stock company( ote rom
through 2
Trade and Industry, the former

O ces

60

idenobu Teramura, the trade and investment insurance was handled by the
inistry of International Trade and Industry)(Domestic) Tokyo ead O ce, Osaka ranch(Overseas) ingapore ranch, aris epresentative o ce,

inistry of conomy,ew ork epresentative o ce

I Re ieof e fo manceI
cti ities

ront roweijiishinoanaging xecutive O cer,

ember of oard , ideo Teramoto ( ember of oard)ada( resident),Atsuo uroda (Chairman and C O),

idenobu Teramura ( enioranaging xecutive O cer,o uctsa uhikoInsu ance

ack row

ember of oard)

out
I an
ani ationale ationFY2021 Financial Results(AuditTomoyoatsui

upervisory oardember)

eishi( ull Time Audit

akamuraupervisory oardember)(Auditouichi Takei
upervisory oardember)

61

Annual Report FY 20 21

out

I an

ani ationale ationusiness lane ium te m usiness lan F

F

In pursuit of the actuali ation of our corporate philosophies, the medium term business plan ( 22 2 )has been formulated based on the following four pillars of action. The plan has been partially revised in December
2 2 .

1 security that a larger number of clients need.

Improve the quality of our service and provide

Fou illa sof action

2 Contribute to the reali ation of state policies.

Create a more attractive working environment.

Enhance the company s operating foundation
for long-term stable insurance business.

e ium te m usiness lan FF. Improve the quality of our service and provide
security that a larger number of clients need.

) Grasp client needs for comprehensive export
credit insurance and continue to review our
products and services in order to ensure theregular use of insurance products by existing clients.
2) ncourage the continued use of export credit
insurance including /C among existing clients, andpromote the use of insurance to exporters who
have not yet used it, by strengthening cooperationand collaboration with partner ﬁnancial institutions
and private non life insurance companies.
3) xpand the scope of companies that make use ofOverseas Investment Insurance by creating amechanism to promote cooperation with private

62

non life insurance companies, and enhancing sales
tools. Improve and simplify our products, aligning them
to clients needs in order to target growth in usage.
4) Develop loan insurance products and revise
related systems while taking into consideration
market needs to promote infrastructure exports by
Japanese companies.
) Improve clients satisfaction with regard to theprocessing of claim payments.
6) rovide clients with useful and easy to understandinformation in an e ective manner via the company
website.
) Improve the quality of our client services byperforming the DCA cycle based on client
feedback from questionnaires.

2. Contribute to the reali ation of statepolicies.

cti ities
Insu anceo uctsout
I an
ani ationale ationFY2021 Financial Results. Enhance the company s operating
foundation for long-term stable insurance
business.

I) Increase employee awareness of the corporate
philosophy and action guideline throughpersonnel training.
2) O er more opportunities for our employees
to exercise their full potentials in jobs bycreating career plans and supporting thesound achievement of such plans, and byincreasing secondments outside the company
and business trainings.
3) Actuali e a working environment that supports
various work styles, including working fromhome.
4) Improve working environment using a DCA
cycle based on employee questionnaire
feedback.

of e fo mance. Create a more attractive working
environment.

I Re ie) Develop insurance products that address market
needs and revise related systems to promote
infrastructure exports by Japanese companies.
2) upport important business projects that relate tonational policies such as infrastructuredevelopment programs, by actively providing
insurance for them.
ote rojects in priority areas.
A) usiness projects with high political importance,
which are related to the government s policies
xports of Japan s high quality infrastructure/ articipation in overseas business projects.
ecuring a stable supply of natural resources,
energy and food.
xports of advanced environmental and safety
technologies / articipation in overseas
projects that contribute to greater energy
e ciency and a better environment.
xports of high quality products and services
developed with Japanese companies
technological excellence / articipation inoverseas business projects.
) rojects that enable major contributions tostrategic overseas expansion of Japanese companies.
C) Collaboration projects with other countries/public
international ﬁnancial institutions that havesigniﬁcant international importance, or businessprojects that would allow us to improve global
recognition of
I and to establish collaborative
relationships with other institutions.
3) r o v i d e g r e a t e r s u p p o r t f o r i n t e r n a t i o n a ltransactions of Japaneses and their exports ofagricultural, forestry, and ﬁshery products.

parallel with this, strengthen the structure of our IT
system department and simultaneously improve
the IT environment.
2) pgrade our process for risk measurements. asedon the results of quantitative analysis, promote
discussions on the management level to establish
a framework and to incorporate measurement
results into our policy to countries, debtors andsectors which have been anticipated of having risk
concentrations. In addition, develop assessment
standards to be able to appropriately judge
insurance underwriting conditions including
amount and shares that can be covered by the
insurance based on results of risk analysis, at an
early stage of insurance consultation.
3) Create a more systematic mechanism for
integrated risk management and continuously
promote the autonomous implementation of the
DCA cycle.
4) urther increase the precision of buyer credit
ratings and actuali e more detailed and accuratesettings of credit limit in accordance with credit
status of each buyer.
) egarding country risk, improve our skills inin fo r m atio n g ath e r in g an d an al y si s whilestrengthening related monitoring. Appropriately
re ect changes in the international situation into
reviews of our underwriting policies/examinations.
6) ormulate a medium term sta ng plan that takes
into account the age composition of ourworkforce.
ursue strategic hiring, aiming forheadcount of approximately 2. stablish apersonnel development plan to secure anddevelopsta capable of leading the formation
stage of business projects, as well as sta
speciali ing in IT systems, risk management(including outward insurance), fund management
and environmental assessment.
umber of regular employees including seconded
employees. Does not include sta increase in IT
system department.
) Analy e risk measurement methods and verify
future cash ow analysis and foreign currency
holdings in the CG Department, and establish asystem for calculating liquidity parameters thatre ect risk uctuations on the liability side in arational manner. nhance our fund management
system by starting a phased implementation of
unifying fund related divisions and systems.
) In the context of the CO ID
pandemic,strengthen our credit management system,
including monitoring of cases before they lead toinsured events. Achieve an.
recovery rate by
2 2 , on major transactions which we need tocollect receivables.

) Develop a new internal IT system with the aim ofreplacing the current system during
2 2 . In

63

Annual Report FY 20 21

out

I an

o ate

o e nance

usinesso

Su e ision

ani ationale ation analuation an

Business

e ationana ement S stem

ecution

I is committed to strengthening the supervision and evaluation of its oard of Directors and other bodies
while enhancing business execution agility through the establishment of the oard of Directors and the Audit
upervisory oard that are stipulated in the Companies Act, and the valuation Committee, the Corporate
Governance Committee, the Corporate anagement Committee, and the Advisory Group.

eneral Meeting of
Shareholders
Audit

Independent
Accounting Auditor

Supervisoryoard
oard ofDirectors

Evaluation
Committee

isk Management
Advisory roup

Corporate overnanceCommittee
ChairmanInternal
Audit
roup

Monitoring
Committee

CE

Corporate
Management
Committee

CashManagement
Advisory roupoard of Directors

Theoard of Directors makes decisions on important management issues and supervises the execution ofI s business operations. The oard of Directors consists of ﬁve directors, one of whom is an outside director
as stipulated in the Companies Act. The outside director monitors and supervises the execution ofIsbusiness from an outside perspective.

Audit

Supervisory oard

The Audit
upervisory oard supervises the decision making process of the directors and execution of theirduties based on various laws and regulations, such as the Companies Act and the Articles of Incorporation. The
Audit
upervisory oard consists of three corporate auditors, two of whom are outside corporate auditors as
stipulated in the Companies Act. In collaboration with the full time corporate auditor, the outside corporate
auditors audit the execution of duties of the directors from an outside perspective and contribute to improving
I s governance structure. In addition,
I organi es the Audit ecretariat to assist corporate auditors with
their duties.

Evaluation Committee

The valuation Committee consists of outside experts and the outside director. This committee evaluates andadvises on
I s operational and administrative status as well as on management issues on which the oardof Directors consults with the committee.

Corporate

overnance Committee

The Corporate Governance Committee is an advisory body to the oard of Directors that is mainly comprisedof outside members. Its purpose is to deliberate on important matters concerning compliance and to verify thecompany s internal control system.

64

Corporate Management Committee

roup

isk Cash Management

Monitoring Committeeof e fo mance

Advisory

The iskanagement Advisory Group serves as an advisory body to the oard of Directors on risk
management. The Cash anagement Advisory Group serves as a consultative body to the Chairman and C O
on cash management. oth of these groups provide advice based on the speciali ed knowledge of outside
experts.

I Re ie

The Corporate anagement Committee is a body mainly comprised of executive o cers and deliberates onimportant matters concerning management.

The onitoring Committee deliberates on matters, such as important issues that occurs in the execution of thecompany s business and proposals for the improvement of the issues.
Io e nment In ol ement

ont olinci lesIn accordance with the Companies Act,I s oard of Directors establish Internal Control rinciples to ensure
proper operation of the company. Internal rules and related systems are created in line with those principles.

om lianceomotionho ou h Im lementation ofom liance Rules

omotinom liance

I establishes the Corporate Governance Committee as a meeting committee structure with the purpose ofdeliberating on important compliance issues and monitoring the state of compliance.
I appoints a compliance o cer at each department and branch (head of department and branch) to improvethe compliance system and promote department and branch level initiatives.
I establishes the egal and Compliance Group in charge of managing legal compliance and compliance related
initiatives to ensure compliance with laws, ordinances, and regulations and to promote compliance.
I stipulates a reporting route to detect important issues concerning compliance at an early stage and implement
necessary corrective measures.
I also organi es an e ective internal reporting system and operates it
appropriately.

olic Relateto

FY2021 Financial Results

S stem fo Im lementin ane ationI establishes basic compliance policies to ensure that all executive o cers and sta members (including
dispatched workers Collectively, the ta
embers ) conduct their tasks in compliance with the applicablelaws and regulations and the Articles of Incorporation in a sound and appropriate manner.
I stipulates internal rules concerning conﬁdential information management, information security policies,
and other information management issues, and creates a framework to appropriately store and manage
conﬁdential information and information assets.
I compiles a compliance manual that outlines basic matters concerning compliance that should be known
by the ta
embers, as well as important laws and regulations that must be observed. The manual also
provides a comprehensive explanation on internal rules to help promote a better understanding of complianceissues.
I formulates an annual compliance promotion program (compliance program) each year, and strives
to promote awareness and to ensure the implementation of compliance rules through education and training
activities related to compliance.

out
I an
ani ationala eness ano ucts

I is aware of its public mission and social responsibility as the policy based ﬁnancial institution engaging in
the trade and investment insurance system, and regards compliance to be one of its most important management
issues in order to consistently comply with laws and regulations and to operate business in a fair and just manner.
The following are related e orts

Insu ance

Inte nal

cti ities

I is astate owned company that operates trade and investment insurance business under the control
and supervision by the competent minister, administration and inspection by the oard of Audit of Japan and thecompetent ministry.

ntisocial Fo ces etc.

I does not have any relation with antisocial forces, etc., resolutely confronts antisocial forces, etc. as anorgani ation, and ﬁrmly rejects improper demands made by antisocial forces, etc.

65Annual Report FY 20 21

out

is

I an

ani ationale ationana ement

As the sole speciali ed institution responsible for the trade and investment insurance business in Japan,
Iaims to contribute to the sound development of international business by providing security to even morecustomers engaging in global trade, promoting e orts to implement Japan s growth strategy, and actively meetingthe diverse needs of customers. In order to fulﬁll its social roles,
I establishes the following framework toappropriately conduct enterprise risk management with the advice of the isk anagement Advisory Group.

nte

ise Risana ement

Enterprise isk Management asic rinciples

I establishes the enterprise risk management basic principles with the aim to ensure a long term ﬁnancial
soundness and attain the purpose of the trade and investment insurance system.
I deﬁnes the enterprise risk
management as properly managing various risks facing
I by category, managing all identiﬁed risks on an
enterprise basis, and controlling them across all lines of its business. In line with the basic policies,
I creates aframework to manage risks in an appropriate and integrated manner. The isk
anagement Group of the
Corporate Governance Department supervises the enterprise risk management under speciﬁc management
methods and the monitoring and instructions of the oard of Directors.
I categori es all risks to be managed
into insurance underwriting risk, investment and liquidity risk, and operational risk, and designates thedepartments that are responsible for the management and supervision of and are in charge of each risk.

Insurancenderwriting isk Management

I deﬁnes the insurance underwriting risk as the risk of liquidity and capital substantially damaged by insurance
claim payment beyond the range that is normally anticipated. In underwriting insurance,
I assesses risks,
including country risks, based on various data gathered by the Credit Department, overseas o ces, andspeciali ed investigation agencies, in addition to information from customers through the sales departments.
I
also monitors the status of the debtor countries, companies, and projects to which credit is extended in order tore ect any changes in their credit conditions in its underwriting policies.
Additionally,
I conducts quantitative management using the risk amount ( a ) and centrali ed risk
management, such as concentration, scenario, and other analysis for the entire portfolios underwritten, in addition
to risk assessment and credit management by individual project, as well as strives to properly manage
accumulation risks through outward reinsurance or other means.
1 Value at Risk: The maximum amount expected to be lost at a certain probability.

Investment and iquidity isk Management

As the risks included in the investment and liquidity risk,
I deﬁnes (i) market risk the risk of losses arising fromuctuations in the value of assets and liabilities due to changes in interests, foreign exchange rates, etc. (ii) credit
risk the risk of losses arising from factors such as the worsening of ﬁnancial conditions of companies to which
credit is provided and of reinsuring companies, (iii) liquidity risk (cash ow risk) the risk of losses arising from theworsening of cash ow mainly due to out ow of more cash than anticipated because of the occurrence of a hugedisaster, etc., which results in it becoming more di cult to secure necessary funds or being forced to enter intotransactions under materially less favorable conditions than usual and (iv) market liquidity risk risk of losses
arising as a result of being unable to sell assets due to a lack of market depth or being forced to sell them at aremarkably low price. nder these deﬁnitions,
I monitors and controls each risk based on the comprehensive
asset liability management approaches. ore speciﬁcally, given the characteristics of liabilities in the trade andinvestment insurance, such as temporary concentration of substantial amount of claims paid,
I gives
importance to securing the safety and liquidity and establishes the cash management policy to restrict potential
investees to deposits and highly safe bonds, including Japanese government bonds, local government bonds,
government agency bonds, and the . . government bonds and other international organi ation bonds.
I alsoconducts quantitative management of foreign exchange and interest risks entailed in the asset portfolio using afor proper risk management.

perational isk Management

As the risks included in the operational risk,
I deﬁnes (i) clerical risk the risk of business interruptions or losses
arising from failure to properly perform clerical work due to an operational incident, fraud or other mistake of thetaembers and contractors ofI (ii) system risk the risk of business interruptions or losses, or leakage of
information of
I and its customers arising in relation to development, maintenance, operation, and usage of IT
systems (iii) information leakage risk the risk of business interruptions or losses arising from failure by thoseincluding the ta
embers and contractors of
I to properly handle conﬁdential information and othersensitive data (iv) institutional and legal risk the risk of losses including arising from being imposed a penalty on
the grounds of a violation of international agreements, domestic or foreign laws or contracts, etc., or the risk ofbusiness interruptions or losses mainly arising from the occurrence of a legal dispute or changes in the trade and66

Reporting

Instructions

Monitoring
Committee

Reporting instructions
Analysis and review ooperational errors etc

Compliance Compliancewith aws andegulations

ana ement

isk Management roup,
Corporate overnance Department

Investment andiquidity isk Management

isk Management roup,
Corporate overnance
Department
Credit Department

isk Management roup,
Corporate overnance
Department

Country
Credit isk
Country isk
Concentration
isk

Market isk
Credit isk
iquidity isk
Cash low isk
Market iquidity
isk

Res onses to ae scaleegal andCompliance roup,
Corporate overnance
Department

perational isk
IT Management
Department

isk Management roup,
Corporate overnance
Department

System isk

Clerical isk

eneral Management andublic elations roup,
eneral Management
and Administrationersonnel roup,
ersonnel and umanesources Department

Information
eakage isk
eputation isk
Accident
Disaster isk

uman iskCompliance
Compliance withaws andegulations

egal andCompliance roup,
Corporate overnance
Department, and others

FY2021 Financial Results

Insurancenderwriting isk

Internal Auditroupe ationSupervisory oard Members

ise Riso o ateommitteeout
I an
ani ationalnte

Corporate overnanceCommittee

Internal Audit

hai manana ement

Cash Management
Advisory roup

Audit by Audit

i ecto s

o uctsAdvice approvalo planofInsu anceBoa

isk Management
Advisory roup

Consultation
advicecti itiesu it
Su e iso Boa

Consultation
evaluation

I

Evaluation
Committee

of e fo mance

Clerical isk Managementnder the clerical risk management regulations,
I appoints the head of each department and branch as the
person responsible for clerical risk management, and is developing the related rules and operations manuals andcreating a multilayered check system for e cient and accurate execution of operations. Additionally,I
establishes the procedures in which any operational mistake or other error, when it occurs, must be informed to
the Chairman C O and the related departments promptly according to its severity level, and necessary actions
must be taken in accordance with their instructions. The onitoring Committee, which consists of the Chairman
C O and other members of the management team, discusses the causes for any operational mistake that
occurs and measures to prevent the recurrence, and di uses the results of such discussion across the company
as necessary, thereby enhancing the e ectiveness of the company wide clerical risk management.

I Re ieinvestment insurance system and the related agreements (v) human risk the risk of business interruptions orlosses arising from a shortage of the required human resources, harassment, or improper personnel/labor
management, etc. (vi) reputation risk the risk of business interruptions or losses arising from damage to social
credibility due to defamation against
I, spreading of rumor, etc. and (vii) accident and disaster risk the risk ofbusiness interruptions or losses, or damage or danger to assets of
I and lives and bodies of the ta
embersdue to an incident, accident, or other disaster. nder these deﬁnitions,
I designates the departments that are
responsible for the management and supervision of and are in charge of each risk, and establishes the
management policy by risk for proper management.

Institutional
egal isk

isasteith the recognition that large scale disasters can pose a serious risk to the business,
I formulates thebusiness continuity plan to avoid the impact of large scale disasters on its business as much as possible and toquickly restore business when such disasters do occur.

67

Annual Report FY 20 21

out

I an

ani ationalani ation

as o Aprile ationa t)

Generalanagement
andAdministration
Department
ersonneland umanResources
Department
lanning andolicy
Department

Advisory Groupor Fundanagement
Audit Supervisory
oard embers
Audit Supervisory
oard
Audit
Secretariat

Independent
Accounting
Auditornvironmental
Guideline
xaminernvironmental
Guidelines
xaminer
Secretariat

usiness
Operation
anagement
Department
Corporate
Governance
Department

General anagement andRelations Grouprocurement and Administration GroupAccounting Group
Financial anagement andReinsurance Groupersonnel Groupuman Resource Development
and Recruitment Group

Corporate lanning GroupInternational Relations Group
Corporate olicy and Data
anagement Group
Insurance System

anagement Group

usiness rocess

anagement Group

Insurance

olicy Contract Groupreasury GroupRis

anagement Groupegal and Compliance GroupIn ormation System

Generaleeting o
S are olders

oard oDirectors

I
anagement
Department

C airmanand C Ovaluation
Committee

Corporate
GovernanceCommittee

AdvisoryGroup
or Risanagementro ectanagement Group

anagement GroupI Development Group
DigitalCorporate
anagement
Committee

rans ormation (D ) Group

usiness Development Group
rade Credit Insurance
Underwriting Group

Underwriting
Department
ersonnelCommittee

rade Credit Insurance
Underwriting Group
Overseas Investment Insurance
Underwriting Group
Overseas Investment Insurance
Underwriting Group

onitoringCommittee

Internal Audit
Group

Structured
and rade
FinanceInsurance
Department

anagement Group
Solution Service Groupower Group
Natural Resources GroupIn rastructure Group

Asset
anagement
Department

Claims Service Group
Recovery Group
Credit Analysis Group

CreditDepartment

nvironment GroupCountry Ris Analysis Group
Credit Administration GroupOsa a ranc

Underwriting Group

Singapore
ranc

68

ublic

Overseas
O cearis Representative O ce
New or Representative O cecesead O ce

ingapore ranch

Chiyoda irst ldg., ast
th loor, 3( )3 3

Japan

hone

2 6

uay 3

6,

ong eong ldg.,

2

ax

6 642

6 6222 4J Suidobashi Sta.

huo ineineaiaris epresentative O ce
Toei Subway
Shin uku ine

Subway Jinbocho Sta.
Sendaimae
Tokyo Metro
Crossing
an omon ine

c/o J T O 2 , rue de erri,
hone
ax

33

33

aris rance

426
426

4

o uctsasukuni Ave.

o nan S in in an

A
E it

out
I an
ani ational

Osaka ranchAioi

E I aris

issay Dowa Insurance

odoyabashi ldg., th loor,
3

22 itahama, Chuo ku,
4e ationOsaka City, Osaka 4
Japan
hone

( ) 6 6233 4ax

Insu anceta.
hita S
udans

A2
E it

ine

Sunlig t ldg

cti itiesTo
itanoma u S ua e

O ara
oo eeping
Sc oolilla Fontaineudans itay Mitaubwa
Toei SoetroMky
To ve.
A
iro

o.
E it

E I Singapore

.

I

I

hi o a Fi st Bl
S
inSens u Univ

o. E it

ve.
an A
akus

East
E it

.
Ave
est

way
ress
E p

e

M

n
olita
rop
Met

est
E it

of e fo mance

I ingapore is not a licensed insurer nor insuranceintermediary under the ingapore Insurance Act.

2 66

shi
oba
Suid

R

3

( )33

ax

6 a esingapore 4
I Re ie

Chiyoda ku, Tokyo
hone

ing,

ishikanda,( )6 6233 4

odoya ridge

Mi uno6ax

B.D.F.M 47-50 street/6th Avenue
Rockefeller
Center
48th Street
47th Street

saka City

ce

I

sa a

46th Street

ioi issao a Insu ance
Yo o a ashi Buil in
odoyabashi Sta.
Mi uho ank

45th Street
44th Street

eihan ine
Penn Station
Port Authority

2 2

E I

43rd Street
42nd Street

B.D.F.M 42 street/6th Avenue

464Park Avenue

ank of Japananshin E pressway oop ine

2 2

Vanderbilt Avenue

ye ridge

Route 1ew ork,

. .A

hone

Madison Avenue

saka Metro
Midosu i ine

odoyabashi Sta.

igobashi Sta.

Tosabori Ave,

saka Metro Tanimachi ine

ita-Shinchi Sta.

Midosu i St.

saka Metrootsubashi ine

Tosabori ivermeda Sta.

Do ima iver. .

ifth Avenue, 4th loor,

Fifth Avenueishi

R o ai ine

c/o J T O 6

iigasha Sta.
med
.
a Sta
med

J

ta.
aS
sak

FY2021 Financial Results

ew ork epresentative O ce

GrandCentralTerminal

4.5.6 42street/Lexington
7 42street/5th Avenue

69

S

ublicity Activities for Trade andInvestment Insurance

N I promotes t e active use o trade and investment insurance to support global businessdevelopment o apanese companies t roug publicity activities
In F
we prepared t e ollowing broc ure and lea etroduct Information rochureis broc ure provides plain explanations wit illustrated
stories to rst time users o t e trade and investment
insurance on eatures o t e insurance application process
and example cases w ere insurance claims are paideormer version was renewed or a better visual understanding
incorporating eedbac we received rom our customers andupdating t e in ormation based on t e latest insurance
systemeaﬂet for E port Credit Insurance for SMEs and A

Sectorfor e porters of agricultural, forestry and shery products, and foodN I is ma ing e orts to acilitate t e use o trade andinvestment insurance to expand and pus apanese export oagricultural orestry and s ery products and ood As part ot e e ort we made a new single page lea et or exporters oagricultural orestry and s ery product and ood o ering
easy to understand in ormation on t e eatures oxport
Credit Insurance or Ss and AFF Sector

In addition to t e new broc ure andlea et mentioned above to promotet e use o trade and investment
insurance we guide our customers
wit six di erent versions o ou ube
videos w ic we created in F
eac introducing t e eatures o
N I s insurance products and ow toutili e t em according to t e needs oeac customer

e are also wor ing to ma e N I s trade and investment insurance better nown to potential users
t roug active participation in and o ering o webinar lectures in collaboration wit t e central
government ministries government a liated institutions and partnering nancial institutions t at support
apanese companies to expand t eir international business
N I will continue improving its publicity e orts by e ectively employing diverse media to provide
in ormation to a broad range o customers ranging rom companies t at are considering using t e tradeand investment insurance or t e rst time to businesses t at are already amiliar wit oreign tradeoperations

70

F
F

Financial Results
Financial Review

Financial Statements etc

71Annual Report FY 20 21
FY2021 Financial Results

F

Financial e ie

e ieof Financial Statements

illions ofent Fiscal ear
Ordinary income

3,4

nderwriting income

3 , 22( et premiums written)

3 ,444

ubrogation income,4 4Investment income

33, 3

Other ordinary income
Ordinary expenses
nderwriting expenses

36
4,4
66,

( et claims paid),3( rovision for outstanding claims reserves)

3, 43( rovision for unearned premiums),( rovision for contingency reserves),2

ubrogation expenses

234

Operating and administrative expenses,2 3

Other ordinary expenses
Ordinary loss,

xtraordinary income,

Income be ore income taxes
otal income taxes

6

Net income

6

otal assets, 6 ,Net assetso t an4,osses

I s underwritten amount in
2 2 (the total
amount of insurance contracts underwritten during
the ﬁscal year the same applies below) rose 3
year on year to J
6. trillion. This is mainly due to a
substantial increase, up 4
year on year, of export
insurance which accounts for aboutof theoverall underwriting. The gain was led by a growth inJapanese exports of steel and cars against the
backdrop of the global economy s recovery from the
CO ID
pandemic. y contrast, loan insurance fellsigniﬁcantly, down 3 year on year, as a result of adecline in project ﬁnance.
et premiums written increased by .
year onyear to about J
3 .44 billion from about J
3 . 3billion. ubrogation income, primarily consisting of72

3

recoveries, grew by 3.
year on year to J
.4billion from about J.
billion, and investment
income rose 63.6 year on year to J
33. 4 billion
from about J
2.
billion re ecting the positive
impact of exchange rates.
eanwhile, due to asigniﬁcant rise in insurance claim payment for
country risk events, net claims paid increased by.3 year on year to J
.3 billion from aboutJ
23.
billion, and subrogation expenses decreased
by 32.4 year on year to J
23 million from about
J 34 million. Operating and administrative expenses
totaled J.2 billion. As a result, a provision forcontingency reserves of J
.2 billion wasrecorded.

Financial Statements etc.
alance S eet fo F

(As o

arc

)

illions of en

Account itle

Amountillions of en

Account itle

I Re ie(Assets)

Amount( iabilities)
32,22

6 ,

6

ank deposits

6 ,

6

6 ,

6

nderwriting reserves

32,244Government bonds

343,

3

nearned premiums

3 ,66

unicipal bonds

3 ,Contingency reserves,

4

Corporate bonds

34 ,

3 ,

2

oreign securities

4 , 33

Securities

Ot er liabilities

angible xed assets

Deposits received

26,

nearned income,

uildings

3 3

Accrued amount payable

quipment and ﬁxtures

6 6

Other liabilities

3,64

rovision or directors bonuses

oftware3,

rovision or employees retirement bene ts

4,

otal liabilities,4(Net assets)oreign reinsurance accounts receivable3,

Accrued income

2,

62 ,

3

62 ,

3
32
32

Other retained earnings
3

4

32

etained earnings brought forward
otal s are olders e uity

4,3

otal net assets

4,3otal liabilities and net assets, 6 ,FY2021 Financial Results, 6 ,Capital surplus

e ationotal assets

6 ,3 2Retained earnings,

De erred tax assets

Capitalegal capital surplus

2

Deposits

, 46

out
I an
ani ational

4

Accounts receivable

6

rovision or directors retirement bene ts

einsurance accounts receivable

Other assets

2

o ucts3

oftware in progress
Accrued premiums

236
Insu ance

Intangible xed assets

4

2,424

rovision or employees bonuses

Other tangible ﬁxed assets

Ot er assets

2

Income taxes payable

cti ities,

23

Outstanding claims reserves

I

Receivables subrogated by paying claims

Insurance liabilitiesof e fo manceCas and ban deposits

73

Annual Report FY 20 21
FY2021 Financial Results

Financial Statements etc.
otes

1 Signi cant accounting policies are as follows.
( ) tandards and methods for valuation of securities
are as follows.
onds held to maturity are valuated using theamorti ed cost method (straight line method).
(2)Depreciation of tangible fixed assets is calculatedusing the straight line method.
(3)Amorti ation of intangible fixed assets is calculatedusing the straight line method.
oftware for internal use is amorti ed based on thestraight line method over the period of internal use(five years).
(4) oreign currency receivables and payables areconverted into Japanese yen at fiscal year end
exchange rates, and translation adjustments arerecorded as profit or loss.
( ) rovision for employees bonuses is recogni ed forthe payment of employees bonuses, based on the
expected amount to be paid at the end of the year.
(6) rovision for directors bonuses is recogni ed for thepayment of directors bonuses, based on the
expected amount to be paid at the end of the year.
( ) rovision for employees retirement benefits is
recogni ed in preparation for the payment of
employees retirement allowance, based on the
projected retirement benefit obligation at the end of
the year.
etirement benefit obligation andretirement benefit expense are calculated based on
the simplified method whereby the requested
amount to be paid at the end of the year forvoluntary retirement of all employees is regarded as
the company s retirement benefit obligation.
( ) rovision for directors retirement benefits is
recogni ed in preparation for the payment of
directors retirement allowance as the requested
amount to be paid at the end of the year, in
accordance with the internal regulations.
( )Contingency reserves are recogni ed in preparation
for the payment of large insurance claims due topolitical risks or other reasons, in accordance with
Article 22 of the Trade and Investment InsuranceAct.
( )Consumption tax and local consumption tax are
accounted for using the tax excluded method.
2Changes in significant accounting policies are as follows.
( )On arch 2 , 2 2 , ministerial ordinance partiallyamending the inisterial Ordinance ertaining to the
Accounting of
ippon
xport and Investment
Insurance (Ordinance of theinistry of conomy,
Trade and Industry o. 6, 2 2 ) was promulgated,
and went into effect on April , 2 2 .
eforearch 3 , 2 2 , the total amount ofreceivables
subrogatedbypayingclaims(commercial risk) from which allowance for doubtful
accounts was deducted was recorded asreceivables subrogated by paying claims. owever,as a result of the application of the amended
ministerial ordinance at the beginning of the fiscal
year, when there are amounts that are expected tobe recovered by exercising the right toreimbursement on the receivables (excluding thosefor which there is no judicial decision or agreement
between the parties concerned), such amount isdeducted from the outstanding claims reserves forthe fiscal year.
The change of the accounting policy was adopted
retroactively, and the balance of receivables
subrogated by paying claims and contingency
reserves at the beginning of the fiscal year

74

decreased by J
2 ,6million. There was noeffect on net assets at the beginning of the fiscal
year.
(2)The Accounting tandard for air alue easurement(A J tatement o. 3 , July 4, 2
hereinafter
the air alue easurement Accounting tandard ),etc. was adopted from the beginning of the fiscal
year, and the new accounting policies established by
the air alueeasurement Accounting tandard
will be adopted prospectively in accordance withthe transitional treatment specified in aragraphof the air alue easurement Accounting tandard
and aragraph 44 2 of the Accounting tandard forinancial Instruments (A J tatement o.
, July4, 2). This had no effect on the financial
statements.
3Significant components of deferred ta assets include
the disallowance of provision for employees
bonuses, provision for employees retirement
benefits, and of unpaid business ta es and businessoffice ta es, while the main component of deferredta liabilities is retirement benefits liabilities
translation ad ustments.
4The status of financial instruments and fair value offinancial instruments are as follows.
( ) tatus of financial instruments
a. olicy on financial instruments
I is engaged in the trade and investment
insurance business. ome of its surplus is invested insecurities to strengthen
I s financial base. In
addition, the surplus from the trade and investment
insurance business is invested in securities, deposits,
and other financial instruments to the extent
stipulated in Article 2 of the Trade and Investment
Insurance Act.
b. inancial instruments and risk
ecurities are exposed to the fluctuation risks ofinterest rates and of market prices.
c. isk management for financial instruments
arket risk management
egarding the fluctuation risks of interest rates,
prices, and exchange rates associated withinvestments in securities and time deposits,Imanages those risks based on the fund management
plans discussed by the oard of Directors. The
current state of managing these risks is ascertained
and controlled at the isk
anagement Group,
Corporate Governance Department.
d. upplementary information on fair value of financial
instruments
The fair value of financial instruments is based on
their quoted market prices.
(2) air value of financial instruments
The table below outlines carrying amounts shown on
the balance sheet, fair value, and differences offinancial instruments as of the end of the year. otes
to deposits are omitted because they are settled
within a short term and the fair value approximates
the book value.
illions of en

ecurities
onds held to maturity
AssetsCarrying amount
Fair value Di erences own on balance s eet

6 ,

6

2,34

2 ,263

6 ,

6

2,34

2 ,263ote. egarding the bonds held to maturity, the tablebelow outlines carrying amount shown on thebalance sheet, fair value and di erences by type.

ype

ubtotalGovernment
bonds

ubtotalTotal
ote 2.

344,
,6 2
,32
,2
3 ,2263 ,,42
34 , 2
3 , 3
4, 23
2,34

32,3
2
6
32,44

6
2,42
,3 2
, 6
2 ,263

Over
Over
Over
Over
Over
to years to years to years to years years

2

, 62

,

4

,

2,4

Total

2 ,

2

, 62

,

4

,

2,4

J

36 million

Amount expected to be recovered (deducted)

Jmillion(J

23 million)( et)

The breakdown of underwriting reserves at the end of theyear is as follows.

( nderwriting reserves)
nearned premiums (before the deductionof underwriting reserves for outward reinsurance)J42,3 3 million

nderwriting reserves for outward
reinsurance related to the aboveJ,6 3 millionJ

3 ,66 million

nderwriting reserves for other items (b) J
b)

J

,

,

millionCash and bank deposits, and deposits received include
the following amounts, respectively.

illions of en

Cash and bank deposits

Carrying amount s own
on balance s eet
26, 4
26, 4

Cash and bank deposits shown above are reserves
held in an account at Banco Nacional de Cuba thatthe government of Cuba opened under the name of“NEXI” (hereinafter referred to as “the Fund”), in
accordance with the debt relief agreement between
the governments of Japan and Cuba.
Deposits received represent the amount equivalent to
the Fund. This is because the use of withdrawals fromthe Fund is restricted to activities including
Cuban-peso denominated projects related to thedevelopment of Cuba approved by the governments ofthe two countries, which means repayments made by
the Fund’s users to NEXI in Japanese yen is deemed
as a partial recovery of the receivables subrogated bypaying claims (political risk).
Amounts are rounded off to the nearest unit.

FY2021 Financial Results

Outstanding claims reserves (before thededuction of the amount expected to be recovered)J

e ation(Outstanding claims reserves)

Total (a

Total

out
I an
ani ational

Accumulated depreciation of tangible ed assets is J
million.
The breakdown of outstanding claims reserves at the endof the year is as follows.
ursuant to Articleof theinisterial Ordinanceertaining to the Accounting of ippon xport andInvestment Insurance, the amount expected to be
recovered by exercising the right to reimbursement(excluding those for which there is no judicial decision
or agreement between the parties concerned) is
deducted from the outstanding claims reserves.

milliono ucts2 ,,Transferred claims

Deposits received

onds held
to maturity

J

xpected receivables subrogated bypaying claims (political risk)enecuritieset (a)

eceivables subrogated by paying
claims (political risk)

Insu ance

aturity analysis of ﬁnancial assets
illions of
it in
year

2

cti ities

unicipalbonds
Corporatebonds
oreignsecurities

3 2,64
,6
,3
,23
34 ,
3 ,3 6
2,
344,4
3 , 3
,3
6 , 6

I

Those with fairvalue notexceeding thecarrying amountunicipalbonds
Corporatebonds
oreignsecurities

Fair value Di erenceof e fo mance

Those withfair value
exceeding thecarrying amountGovernment
bonds

I Re ie

illions of en
Carrying amounts own onbalance s eet

et assets per share is J2,
. .
Total net assets, the basis for calculating net assets
per share, is J
4, 3 million, and the full amountis related to common shares. The number ofcommon shares at the end of the year is
million.
eceivables subrogated by paying claims politicalrisk , e pected receivables subrogated by paying
claims political risk and transferred claims, and their
total are as follows.

4 million

32,244 million

75

Annual Report FY 20 21
FY2021 Financial Results

Financial Statements etc.
Statement of ncome Aprilarcillions of en

Account itle
Ordinary income
Underwriting income

Amount3,4
3 , 22et premiums written

3 ,444oreign exchange gains

3

Subrogation income,4 4Investment income

33, 3Interest and dividends income

6,462

oreign exchange gains

26,6
36

Ot er ordinary income
Ordinary expenses
Underwriting expenses

4,4
66,
,3

et claims paid

6

Commissions
rovision for outstanding claims reserves

3, 43
,6 6

rovision for underwriting reserves
rovision for unearned premiums,,2rovision for contingency reserves
Subrogation expenses

234

Operating and administrative expenses,2 3

Ot er ordinary expenses
Other ordinary expenses
Ordinary loss
xtraordinary income
Gain on government grants,,,

Income be ore income taxes

76

Income taxes current

24

Income taxes de erred3

otal income taxes

6

Net income

6

otes

remiums writtenJ

3 , 6 million
3 ,444 million(2)The breakdown of net claims paid is as follows.
Insurance claims paidJ,3

millionJ,3

millioneinsurance claims recoveredTotal

2 million
million)(J

6 million),

rovision for underwriting reserves foroutward reinsurance related to the above (J3,3 4 million),

rovision for other underwriting reserves (b) J
Total (amillion),2

Jb)

million)million,6 6 million

J

Interest from bank deposits
Interest and dividends from securities J

2 2 million
6,

million

Total

J6,462 million(6)The breakdown of subrogation income andsubrogation expenses is as follows.
ubrogation income
ecovery of receivables subrogated by paying claims (political risk) J

2,23 million

Interest from receivables subrogated by paying claims (political risk) J
ecovery of receivables subrogated by paying claims (commercial risk)

2,646 millionJ

2 million4

et income per share is J
0. .
et income for the fiscal year, the basis forcalculating net income or loss per share, is J
6
million, with the full amount of the income being
related to common shares.
The average number of common shares during the
fiscal year was
million.
The diluted net income per share is not given since
there are no dilutive shares.
Amounts are rounded off to the nearest unit.

FY2021 Financial Results

Other interest and dividends

3 ain on government grants recorded as e traordinary
income refers to grants provided by the government
to partially compensate for the impact that debt
deduction for I Cs and others has on the trade andinvestment insurance business.

e ation( )The breakdown of interest and dividends income isas follows.

Transaction terms and decision policies oftransaction terms, etc.
ote .The grants are provided to partially compensate
for the impact that debt deduction for heavily
indebted poor countries ( I Cs), etc. has on the
trade and investment insurance business.
ote 2.The amount of transactions does not include
consumption tax, etc.

out
I an
ani ationalrovision for unearned premiums (before thededuction of underwriting reserves for(J
outward reinsurance),o ucts(4)The breakdown of provision for underwriting
reserves (figures in parentheses are reversal ofprovision) is as follows.

(J

illions of en
Ratio oAmountalanceAccount at endontity voting rig ts Relations ip ransaction
wit
party
title
etc
transactionso yearInsu ance

(J

Total

234 million

2 usiness with related parties is as follows.

ajor inistry Directly Trade and Gain on
investment government
share
held
of
insurance grants
holder inanceadministration

Commissions for outward reinsuranceet (a)

JTotal

cti ities

J

Commissions for agencies and others

4 million

oss on uncollected interestype(3)The breakdown of commissions is as follows.

3 millionJ

ecovery expenses (inward reinsurance)Iote . Insurance claims paid is calculated bydeducting the amount recovered of J
, 6 million from the amount paid of J
6 ,24 .

4 million

Debt recovery expenses (underwritten) J

423 million)

J

Total

J

oss on bad debts (commercial risk)of e fo mance(J

einsurance premiums paidubrogation expenses
I Re ie

1( )The breakdown of net premiums written is asfollows.

Interest from receivables subrogated by paying claims (commercial risk)
ecovery of transferred claims
ecovery received

ecovery received of overseas inward reinsurance

J
J

J

Other income from receivables subrogated by paying claimsJ

oreign exchange gains (subrogation income)
Total

J
J

2 million

3,4

million42 million
million4 million,4 4 million

77

Annual Report FY 20 21
FY2021 Financial Results

Financial Statements etc.
Statement of
April

arc

an es in S a e ol e suit
illions of en

S are olders
Capital surplus
Capitaleginning balance

6 ,3 2

etained earnings

egal
capitalsurplusTotal
capitalsurplus

62 ,

62 ,

3

uity

3

Other retained
earnings
etained earnings
brought forward3

Total
retainedearnings
3

Total
shareholders
equityotal
netassets4, 64, 6

C anges during t e year
et incomeotal c ange during t e yearnding balance

6 ,3 2

62 ,

3

62 ,

otes
1 Type and total number of issued shares, and typeand number of treasury shares
Thousands of hares

Number os ares as oApril

Increase Decreaseduring t e during t e Number os ares as o
scal
scal
arc
year
year

Issued shares
Commonshares

,

,

Total

,

,

ote

I holds no treasury shares.

2Share acquisition rights and treasury shareacquisition rights
There are no applicable matters.
3Dividends
There are no applicable matters.

78

3

6

6

6

6

6

6

6

6

32

32

4,

3

4,

3

Statement ofas Flo s Aprilarcillions of en

Amountremiums received

I Re ie

Account itle
ows rom operating activities

Cas

3 ,3

6 ,224roceeds from collection of receivables subrogated by paying claims

2 ,2 4

ayment for operating and administrative expenses

6, 2Commissions

2

ayment for allocation of collection from receivables subrogated by paying claims

4,4

Others36

Subtotal

2 ,23Interest and dividend income received, 3

ayments into time deposits

cti ities

ows rom investing activities

,

3,43

roceeds from sales and redemption of securities,,

Othersurchase of tangible ﬁxed assets

,

(

6

,26 )
2

urchase of intangible ﬁxed assets,2

roceeds from sales of tangible ﬁxed assets

Net cas provided by (used in) investing activities

o ucts(Total from operating and asset management activities)

4

Insu anceroceeds from repayment of time deposits
urchase of securities

6,3

ows rom nancing activities

roceeds from borrowings

out
I an
ani ational

Cas

3

,

I

Income taxed refund (paid)

Net cas provided by (used in) operating activities

Casof e fo mance

Insurance claims paid,

Dividends paid,

ect o exc ange rate c anges on cas and cas e uivalents

4,2

Net increase (decrease) in cas and cas e uivalents

,223

3,3

Cas and cas e uivalents at t e end o t e year

642,

4

otes
3The reconciliation of the balance of cash and cash
equivalents at the end of the year and the amounts
of items presented in the balance sheet is as follows.
illions of en
As o
arc
6 , 6
Cash and bank deposits
3,643Time deposit
26, 4
Other bank deposits

2Cash and cash equivalents in the statement of cash
ﬂows comprise cash on hand, deposits that can bewithdrawn at any time, and short-term investmentswith redemption deadline occurring within about
three months from the acquisition date that arereadily convertible into cash and bear only minor
risks with respect to ﬂuctuation of value.

Cash and cash equivalents at
the end of the year

642,

4

Other bank deposits are not included in the scope of cash
and cash equivalents due to the following reason. In
accordance with the debt relief agreement between thegovernments of Japan and Cuba, the Cuban government
opened an account at anco acional de Cuba under thename ofI. The use of withdrawals from the account isrestricted to activities including Cuban peso denominatedprojects related to the development of Cuba approved byboth governments, with the und s users making a repaymentof the equivalent amount in Japanese yen.

FY2021 Financial Results

1The statement of cash flows to be submitted to the
Minister of Trade, Economy and Industry under theprovisions of Article 20 of the Trade and Investment
Insurance Act is prepared in accordance withaccounting principles generally accepted in Japanand ordinance on terminology, forms, and preparation
methods of financial statements.

e ationCas and cas e uivalents at t e beginning o t e year

4Amounts are rounded off to the nearest unit.

79Annual Report FY 20 21
FY2021 Financial Results

Financial Statements etc.
Details of account items

1. Balance Sheet
Account item

Details

Receivable subrogatedby paying claims

Of the rights acquired under Article 42 of the Trade and Investment Insurance
Act, the item consists of receivables subrogated by paying claims (political risk),
expected receivables subrogated by paying claims (political risk), andtransferred claims.

Accrued premiums

Accrued premiums associated with insurance application.

Reinsurance accounts
receivable

The accrued portion associated with inward reinsurance transactions withJapanese insurance companies.

Foreign reinsurance
accounts receivable

The accrued and prepayment portions associated with inward/outward
reinsurance transactions with overseas insurance companies.

Accrued income

Total amount of accrued interests from securities and receivables subrogated bypaying claims (political risk) at the end of the ﬁscal year.

Outstanding claims
reserves

The amount needed to pay claims that are already made but not yet recorded
as expenses or that are not yet made but the occurrence of events is alreadynotiﬁed (excluding notiﬁcation of the delay in the performance of obligations).

Unearned premiums

Of premiums written, the amount equivalent to liabilities to cover the remaining
period of coverage at the end of the ﬁscal year, speciﬁed in insurance contracts
and others.

Contingency reserves

The amount to prepare for possible future risks in order to ensure the fulﬁllmentof obligations based on insurance contracts and others.

2.Statement of Income

80

Account item

Details

Net premiums written

Direct premiums written adjusted by reinsurance premiums, with inward
reinsurance premiums added and outward reinsurance premiums deducted.

Subrogation income(expenses)

The item includes proﬁt from recovery of receivables subrogated by paying
claims, interest income, foreign exchange proﬁt or loss, and loss on bad debts.

Investment income

The item includes interests from ﬁnancial assets such as bank deposits andsecurities, investment income such as dividends, foreign exchange proﬁt, andgain on sales.

Net claims paid

Claims paid less reinsurance claims recovered.

Commissions

The item includes commissions for outward reinsurance, agencies, and othersources.

Gain on government
grantsGrants received, related to matters including debt forgiveness deemednecessary to fulﬁll international obligations under Article 36 of the Trade andInvestment Insurance Act.

A
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