Annual Report FY2010

Message from the Chairman
product called Comprehensive Export Insurancewith Simplified Procedure aims for procedural
efficiency for both our customers and NEXI.
Furthermore, we started to cover such risks aspolicy shift risk under Overseas Investment
Insurance and risk against trade via overseas sales
subsidiaries in accordance with the Government s
New Growth Strategy that was developed in June
2010. Also, in December 2010, we strengthened
support against local currency exchange risk as asupport measure of the Government s strategy forpromoting exports of packaged infrastructure
systems.

In presenting this annual report for fiscal year
2010, I would like to express our sincerest gratitude
for your understanding and support for Nippon
Export and Investment Insurance (NEXI).
First and foremost, we would like to extend
our deepest sympathy and offer our heartfelt
condolence to people affected by the Great East
Japan Earthquake on March 11, 2011. To accelerate
the economic recovery from the damage caused by
the devastating earthquake and ensuing nuclear
accident, we have announced several support
measures including specifying the scope of losses byrumor to be covered by insurance and postponing
insurance procedures for affected SMEs.
Japan s exports during FY2010 increased by
14.9% to JPY67.8 trillion, following two consecutive
years of decline in the wake of the global economiccrisis in September 2008. However, as emerging
sovereign risk and rising political risk continue tothreaten the global financial market, we believe thatNEXI s role and responsibility have become more
important as the official Export Credit Agency (ECA)of Japan that supports international activities ofJapanese businesses.
We have been addressing to improve our
insurance products and services in order to meetcustomer needs. To achieve this priority, we
launched several new services, such as insurance forexports by overseas subsidiaries of Japanesecompanies to third countries via Japanese non-life
insurance companies, and support for financing ofJapanese businesses by promoting liquidity of
NEXI-insured export receivables. Our new insurance

1

Annual Report FY2010

NEXI is continuing to strengthen ties withoverseas organizations. Our focus during this fiscal
year was to develop a reinsurance network withother ECAs in Asia to further support Japanesebusinesses in the rapidly growing Asian markets. In
FY2010, we signed reinsurance agreements with the
Taipei Export-Import Bank of China (TEBC) andKorea Trade Insurance Corporation (KSURE),
respectively. NEXI also signed an MOU withPetroVietnam, Viet Nam s national oil and gas
company, to help Japanese businesses participate inmultilateral projects led by the largest company inViet Nam.
Also during this fiscal year, NEXI underwrote
several projects under its Trade and Investment
Insurance for Preventing Global Warming scheme,
which was developed to contribute to reducing GHG
emissions as part of NEXI s social responsibility
vis-à-vis the environment. Underwritten projects
amounted to about JPY330 billion, and include aforestation project and a hydro-power project in Viet
Nam, and solar power projects in Spain.
As the economy becomes more global, there isa growing international trend whereby national
governments are supporting business and the public
and private sectors are joining hands to survive andsucceed amid intensifying global competition. Given
this, all of us at NEXI know that we will be expected
to play a more active role in helping Japanesebusinesses. Thus, we will strive to meet diversifying
business needs and provide quality service stably
and effectively. And in this effort, we ask for yourcontinued understanding and support.
Takashi Suzuki
Chairman and CEO
July 2011

NEXI M i s s i o nManagement Principle
NEXI will contribute to Japan's economic community by anticipating changes in
the market at all times, appropriately responding to customer needs, andeﬃciently and eﬀectively conducting insurance business covering risks that arise
in international transactions but are not covered by regular commercial
insurance.

Management Policy
1.NEXI, realizing its role as an incorporated administrative agency, will operate its
business from the public standpoint and aim to contribute to national stability
and sound development of the economic community.
2.NEXI will observe the customer-ﬁrst principle at all times, provide high-quality
services by improving its expertise, and aim at increasing customer satisfaction
and building strong trust with customers.
3.NEXI will utilize all of its operating resources systematically, work on
quantitative and qualitative increases in the risks it underwrites, improve its
proﬁtsthrough

appropriate

riskmanagement,

and

aim

for

long-range

development.
4.NEXI will develop human resources and promote strengthening of staﬀ
self-improvement, make use of staﬀ diversity, and aim at creating a liberal andlively workspace where employees have pride in their organization.

CONTENTS

Regarding figures in this Annual Report
In principle, figures in this report are rounded to thenearest unit. Therefore, the sum of individual figures
may deviate from the sum presented.
Figures that fall below a unit as a result of rounding
are indicated as "0"; if there is no corresponding
figure, - is indicated.
Figures in the trade and investment insurance
business are on a fiscal period basis unlessotherwise noted.

Message from the Chairman

12010 Business Overview

32010 Performance Highlights

9

Review of Performance

17

Underwritten Projects

212010 Financial Results

29

Third-Term Objectives

35

Customer Service Charter

37

Profile of NEXI

39

Fiscal year 2010 (FY2010) is from April 2010 to March 2011.
The year 2010 in this annual report indicates FY2010 unlessotherwise noted.
Annual Report FY2010

2

2010年度
2010
Business
主なトOverview
ピックス
Committing to addressing political issues as a governmental
institution to implement national policies
coverage against

Support for recovery from theGreat East Japan Earthquake

policy-shiftrisk for Japanesecompanies investing in overseas companies in the
resources, energy, and infrastructure sectors to protect

Nippon Export and Investment Insurance (NEXI) would

against losses caused by, for example, the bankruptcy

like to extend its deepest sympathy to people affected byof an invested company as a result of a general and

the Great East Japan Earthquake that struck on March
11, 2011, and to offer its heartfelt condolence to those who

legitimate policy shift by its government.
(2)Insurance coverage for trading via overseas

lost their lives, families, and property. To provide redress

sales subsidiaries

for the victims and accelerate economic recovery, NEXI

NEXI has started to provide an insurance service forhas implemented the following support measures.

cases when a Japanese company exports Japanese
goods to an overseas sales subsidiary, and then the(1)Support for the victims

subsidiary sells the goods to a buyer in another country.

NEXI supported its affected SME customers by

This service provides coverage against risk associatedpostponing

insurancewith such trade if the trade meets certain conditions.

postponing

insuredprocedures,customers

reducing

orobligations,andreducing insured customers economic burden.
(2)Measures against losses by rumor

Exports of packaged infrastructure systems
In December 2010, the government decided at a

Providing specific examples, NEXI publicized that it

Ministerial meeting on exports of packaged infrastructure

has insurance support schemes that can cover losses

systems

incurred by exporters (insured customers) due togovernment organizations for private-sector consortiums

import restrictions or prohibitions in destinationto actively help them win overseas orders. With thiscountries or project host countries as a result ofdecision NEXI started the following measures.

rumors that Japanese goods are radioactively(1)Stronger protection against foreign currency risk

contaminated.

to strengthen financial support by concerned

NEXI decided to provide currency-risk coverage against(3)Dedicated Help Desk Service

18 local currencies in addition to dollar and euro, so thatNEXI provided broad-ranging help desk support for

the insurance claims to be paid would not be reduced

trades damaged by the disaster.

compared with the amount of claims expected at thetime an insurance contract is concluded.

Since announcing the support measures, NEXI has
provided explanations on and support with application

with JBIC

procedures in response to numerous inquiries received

NEXI raised the maximum percentage of coverage

from customers, including new SME customers that had

against political and commercial risks under Overseas

never

also

Untied Loan Insurance from 97.5% (political risk) andparticipated in several meetings held by chambers of

95% (commercial risk) to 100% (both risks) for

commerce and financial institutions to explain insurance

private-sector banks in cases of co-financing by

application procedures and services.

private-sector banks with JBIC in overseas projects.

used

NEXI

insurance

before.

NEXI

Response to the New Growth Strategy
The New Growth Strategy approved by the Cabinet in

3(2)Higher percentage of coverage for co-financing

Comprehensive Export Insurancewith Simplified Procedure

June 2010 emphasizes strong public-private support forThis new insurance service that started on July 1, 2010, is

infrastructure exports to Asia and other regions wherefor exporters that are continually and repeatedly engaged

demand for infrastructure development is very high. In

in export with a number of buyers. Application for this

response, NEXI implemented the following measures.

service is easier compared with other NEXI products(1)Policy-shift risk coverage consultation underbecause an exporter is not required to apply for insurance

Overseas Investment Insurance

for each export contract, and is only required to notify

NEXI has started to provide consultation concerning

NEXI of shipping information on a monthly basis.

Annual Report FY2010

2010 Business Overview

Annual Report FY2010

Offering more user-friendly insurance service in further cooperation
with private-sector financial institutions
Creating financing and purchase of receivables
schemes in cooperation with financial institutions
In

collaboration

NEXI

In recent years, an increasing number of Japanesedeveloped a loan program to extend loans to SMEs atbusinesses have been exporting directly from theirpreferential interest rates by using NEXI-insured export

overseas sales or manufacturing subsidiaries to buyers inreceivables as collateral. Under this program, NEXI pays

third countries. Such transactions are reported to haveinsurance claims to Shoko Chukin Bank, which is thegrown to nearly the same size (70 to 80%) as that of direct

secured party when an SME as a borrower fails to collectexports from Japan.

receivables

from

with

its

Shoko

Chukinoverseas

buyer

Bank,

Fronting arrangements via overseas
insurance companiesaGiven this situation, NEXI started a fronting service (i.e.,

post-shipment insured event and cannot repay Shoko

due

to

a service in which an insurance contract that was

Chukin Bank.

originally made by a local insurance company is 100%

NEXI-insured export receivables
collateralized loan scheme
Shoko Chukin③Loancompanies in order to provide these subsidiaries withservices that are equivalent to those it provides to

Cooperation

NEXI

NEXI insurance publicity(by brochures, website, etc.)

companies in Japan. In December 2010, NEXI made its
first fronting arrangement concerning exports from aJapanese overseas subsidiary to a third country through②Collateral(Preferential interest rates)

backed by NEXI s reinsurance) through local insurance

a business partnership with Mitsui Sumitomo InsuranceCo., Ltd.

①Insurance contract

Local insurancecompany

SME

Exportreceivables

NEXI insurance（※）

Overseas buyer

NEXI also established a program for promoting purchaseof export receivables covered by NEXI insurance incooperation with three megabanks in Japan: Mizuho Bank
Ltd, The Bank of Tokyo-Mitsubishi UFJ Ltd, andForeign country

Japan

Investment

Japanesecompany

Sumitomo Mitsui Banking Corporation. The purchase

Japanese
subsidiary
overseas

Third country

ExportImporterprogram with Mizuho Bank has already started. Under
this program, export receivables covered by NEXI
insurance can be purchased by the bank, thereby
allowing an exporter to convert the receivables into cashprior to a payment deadline.

NEXI-insured export receivables
purchase schemeBank

Cooperation

NEXI

SME support planningand implementation

NEXI signed service agreements with commercial banks
and private insurance companies to provide and sharetrade insurance information and know-how as well as
efficiently develop new customers through utilization of
external resources.

②Purchase ofexport receivables

In FY2010, NEXI started a service agreement with Shoko(insured by NEXI)①Insurance contract

SME

Expanding Insurance Service
Agreements with Private Insurance
Companies and Financial Institutions

Exportreceivables

Chukin Bank in April, and signed agreements with fivecompanies̶the Hokkaido Bank, Ltd; Mizuho Corporate
Bank, Ltd; AIU Insurance Company; Kyoei Fire & Marine

Overseas buyer

Insurance Co., Ltd; and Hitachi Capital Insurance
Corporation̶with an eye to starting cooperative service
for the next fiscal year. The agreement with Hitachi

Under these programs, an exporter will be exempt from

Capital is the first of its kind between NEXI and arecovery obligations that otherwise should be imposed

corporate group-affiliated insurance company. Moreover,after the occurrence of the insured event. Thus, application

Hokkaido Bank is the first regional bank to sign anof the programs is expected to facilitate funding by SMEs

agreement with NEXI.

that actively trade with overseas businesses.
Annual Report FY2010

4

Taking global initiatives by strengthening international cooperation
NEXI has further promoted cooperation with foreignorganizations including ECAs, financial institutions, andNEXI and K-sure reinsurance scheme for a
Japan-Korea participating project

resource-sector companies to expand its international
network.

Japanese-led project

Expanding the reinsurance networkwith Asian ECAs

KSURE

Consortium

Reinsurance for
Korean export

NEXI is supporting Japanese businesses in Asian

Korean company

NEXI

countries by developing its reinsurance network with

Insurance for theentire export

Asian ECAs.

Japanese company(Main contract)
Order

Third country
Project owner

Heretofore, NEXI signed reinsurance agreements withECICS of Singapore, MEXIM of Malaysia, ASEI of
Indonesia, and THAI EXIMBANK of Thailand. During

Korean-led project

FY2010, NEXI also signed new agreements with TEBC of

NEXI

Taiwan in September 2010 and K-sure of South Korea in

Consortium

Reinsurance forJapanese export

February 2011.

KSURE
Insurance for theentire export

Japanese company
Korean company(Main contract)
Order

Third country
Project owner

In FY2010, NEXI underwrote seven reinsurance projects
in Asia with a total underwritten amount of JPY1.5 billion.
Through reinsurance agreements with Asian ECAs,
NEXI will continue to support Japanese companies inAt the signing ceremony with KSURE

Asia that are exporting to third countries and promote
closer economic relationship between Japan and Asia.

The reinsurance agreement between NEXI and K-sure

MOU with Petrovietnam

enables risk sharing in proportion to each country s
exports under Japan-Korea joint projects ordered bythird countries. Under the reinsurance agreement, either

In

NEXI or K-sure underwrites insurance for the entire

Petrovietnam (Vietnam Oil and Gas Group), a state-owned

June

2010,

NEXI

concluded

an

MOU

with

export.

oil and gas enterprise and the largest corporation in Viet
Nam. Petrovietnam is planning large-scale investments inseveral sectors including oil, gas, and electricity in view of
the country s rapid economic growth. Many Japanesecompanies are expected to participate in its projects bymaking use of their high engineering skills andexperience.
NEXI will draw upon the MOU to actively support
Japanese companies business development in Viet Nam
and to strengthen economic relations between the twocountries.

5

Annual Report FY2010

2010 Business Overview

Annual Report FY2010

Training Program for AsianECA Professional Staff

Berne Union Meetings
The Berne Union (The International Union of Credit andInvestment Insurers) is a forum where Export Credit

Every year, Japan s Ministry of Economy, Trade andAgencies

exchange

Industry (METI) implements a training program for

information on common issues related to export credit

Asian ECA staff as part of Facilitation of Cooperation ininsurance and investment insurance. The first meeting

Trade Insurance Operation, and NEXI sends staff to thewas held in Berne, Switzerland, in 1934, and current

program to serve as lecturers. The purpose of themembership extends to 48 institutions (37 countries, 2

program is to help develop trade insurance systems andregions and 2 international institutions) as of July 2011.

improve the ability of ECAs in countries and regions

Main activities involve biannual meetings (held in thewhere trade insurance is still in the developmental stagespring and autumn) where members exchange opinions

inon coverage policies, specific projects, credibility ofsubsidiaries as well as to strengthen ties between eachoverseas buyers, and other current issues. In 2010, theECA.

spring meeting was held in June in Helsinki, Finland, andThe latest program was held from January 24 to

the autumn meeting was held in November in Cape

February 3, 2011, with eight participants from India,

Town, South Africa.

Indonesia, Thailand, Taiwan, Philippines, Malaysia, Hong

(ECAs)

invariouscountries

order

to

facilitatebusiness

by

local

Japanese

proposed

Kong, and Brazil (as a special participant). NEXI staff

modification of BIS capital adequacy ratio (Basel III) andprovided lectures on topics such as insurance businesssubmitted opinions to the Basel Committee concerning its

operations and international rules.

The

Berne

Union

recently

discussedaeffect on ECA financing.

Bilateral Meetings
NEXI holds annual bilateral meetings with ECAs andgovernment officials of Germany, France, South Korea,
China and Austria. In the meetings, a wide range ofsubjects are openly discussed, including international
financial trends, the business environment of eachcountry, country risks, and conducts regarding the OECD
Arrangement on Officially Supported Export Credits orBasel Ⅲ.
The

relationshipinstitutionsisbetweenstrengthened

NEXI

and

throughthepartnerthese

regularAsian ECA Training Program

meetings.

Bilateral meeting with Germany
Annual Report FY2010

6

Supporting Strategic Priority Sectors
Supporting International Development of SMEs
NEXI supports the international business development ofIn the aircraft sector, NEXI provides reinsurance to US

SMEs. Export Credit Insurance for SMEs was established

EXIMBANK to support the export of aircraft jointly

in April 2005, and the number of underwritten cases wasdeveloped by a Japanese heavy industry company and a

292 in FY2010.

U.S. aircraft manufacturer. In FY2010, NEXI provided

In October 2008 NEXI introduced a program in which

reinsurance for 25 Boeing aircraft destined for ninebuyer credit information was provided free of charge forairlines and leasing companies. This resulted in a total of

SME customers. The program continued beyond its initial

107 aircraft underwritten with 22 airlines and leasingtime frame, and was utilized by 312 companies in 574

companies

cases as of the end of FY2010.

agreement with US EXIMBANK in 2004.

In collaboration with Shoko Chukin Bank and the three

NEXI is also actively supporting efforts to acquire orders

megabanks of Japan, NEXI established a favorable loan

for Japan-made small passenger planes (MRJ). In FY2010,

program for SMEs with insured export receivables as

NEXI helped acquire 50 MRJ orders by providing advice

collateral, as well as a purchase scheme of exporton sales finance schemes and preliminary analyses ofreceivables.

transactions to exporters.

NEXI will continue to actively support SMEs desiring topromote overseas development not only by covering their

since

the

conclusionofareinsurance

Support for the Agricultural Sectorrisks connected with external trade but also by

NEXI is strengthening its support for investments andfacilitating financing through banks located throughoutloans for overseas agricultural business and promotes

Japan.

export of agricultural products in order to ensure foodSupporting Efforts to Secure a Stable
Supply of Natural Resources and Energy
Oil and mineral prices remain at historical highs, and thus
securing natural resources and energy continues to be an
important policy concern for Japan.
Starting with the establishment of Investment and Loan
Insurance for Natural Resources and Energy in April
2007, NEXI has supported projects that contribute toofftake or acquisition of interests in mineral and energy
resources by Japanese companies.
In

FY2010

NEXI

provided

Investment

and

Loan

Insurance for Natural Resources and Energy for mineral
resources projects, including the Similco copper mineredevelopment project in Canada and the Samarco ironore pellet production facility improvement project inBrazil. In the oil production sector, NEXI provided
coverage for investment by a Japanese consortium in the
Carabobo mining blocks project located in the eastern
Orinoco basin in Venezuela.

7

Support for Aircraft Sector

Annual Report FY2010

security and foster growth industries in Japan. In
November 2010, NEXI underwrote Overseas Investment
Insurance for a Japanese company investing in an
agricultural project in Argentina.

Annual Report FY2010

Working Toward a Sustainable
Society

Trade and Investment Insurance
for Preventing Global Warming

2010 Business Overview

Providing Information throughSeminars

Seminars on Trade Insurance
NEXI regularly holds seminars on trade insurance

Trade and Investment Insurance for Preventing Global

services to enhance customers understanding of trade

Warming was created in 2008 as part of efforts to reduce

insurance and promote effective use of its services.

global greenhouse gas emissions by transferring Japanese

Seminars cover essential information on the tradeenergy conservation and renewable energy technologies.

insurance system, credit control, claims payment, debt

The percentage of coverage for political risk is raised torecovery, and specific products. Seminars are held every

100% with this insurance.

year in Tokyo, Osaka and Nagoya. Over 400 people,

In FY2010, NEXI underwrote this insurance for six

mainly trade insurance users, participated this year.

projects, including a vegetable-based Green Polyethylene

As a new initiative, NEXI held seminars in Hokkaido andplant expansion project in Brazil and solar power projects

the Tohoku, Chugoku, and Kyushu areas jointly with thein Spain.

regional Bureaus of Economy, Trade and Industry andthe Shoko Chukin Bank, Ltd. Nearly 100 potential tradeinsurance users participated at each venue, mainly fromsmall and medium-sized companies.

Seminars on Debt Recovery
NEXI regularly holds debt recovery seminars to provide
practical information on overseas debt recovery. Eachtime, guest lecturers with high experience in debt
recovery are invited from international law firms or fromoverseas debt servicing agencies with which NEXI is inpartnership.
In FY2010, NEXI and the Japan Foreign Trade Council

Solar power projects in Spain

jointly held a seminar in November in Tokyo that was

Guidelines on Environmental andSocial Consideration

attended by a record number of 175 people, mostly tradeinsurance users. Lecturers were invited from two partner
servicers in the Netherlands to explain operations

In order to fulfill its social responsibility vis-à-vis theinvolved in debt recovery processes with specific caseenvironment as the official Japanese ECA, NEXI conducts

studies based on different debt categories and regional

appropriate

characteristics. Special focus was given to European

environmental

analysisbyestablishing

Guidelines on Environmental and Social Consideration incountries, and other emerging countries.

Trade Insurance. These guidelines are based on theOECD Council Recommendation on Common Approaches
to the Environment and Officially Supported Export
Credits. NEXI will continue to ensure that projects to beunderwritten are provided with adequate environmental
and social consideration by project companies.

Annual Report FY2010

8

2010 Performance Highlights
2010年度の業務概況〈〈〈Economic Trends
FY2010 saw the first increase in Japanese exports in three years, by 14.9% compared to the previous fiscal
year to JPY67.8 trillion. Exports to North America, EU, and Asia increased 11.4%, 9.5% and 17.1%,
respectively. As for specific sectors, exports of cars and steel increased.

（Japan s exports）
Total Exports(Millions of yen)

FY2006

FY2007

FY2008FY2009FY201077,460,585

85,113,381

71,145,593

59,007,879

67,791,688

13.4

9.9

(16.4)(17.1)

14.9

Year-on-year change (%)(Source: Trade Statistics, Ministry of Finance)〈〈〈Trends of the Trade and Investment Insurance Program(Billions of yen)
300

200

100

0

Outstanding Borrowings
JPY 0 billion

-100

-200

Peak of Insurance
Claims Payments
JPY 341.9 billion

-300

-400

Premium income
Recoveries and other income
Claims Paid
Outstanding Borrowings at year-end

-500

-600

Peak of Outstanding Borrowings
JPY 688.6 billion-700(Billions of yen)
Fiscal Year

1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Premium income 32.8 37.3 34.1 41.3 46.8 33.4 30.4 21.3 34.2 44.8 35.7 44.7 46.2 44.1 43.5 41.0 46.0 45.4 33.2 32.9 37.3 31.3 43.2 38.0 43.8 34.9 36.8 39.3 38.2 34.4
Recoveries andother income

5.5 12.3 15.2 25.6 38.9 53.6 34.9 40.0 69.3 38.7 40.7 111.2 77.3 85.2 98.3 121.2 123.0 91.3 84.6 85.3 74.5 70.2 97.7 101.4 228.7 247.3 57.5 41.9 20.5 15.6

Claims Paid

37.6 62.7 80.5 141.5 164.3 169.0 109.5 164.8 142.7 198.6 341.9 148.2 128.0 80.6 57.1 44.4 30.2 16.7 21.6 32.4 49.9 65.1 23.0 12.9 3.7 2.4 3.8 17.2 10.4 8.6

Outstanding
Borrowings at
year-end---- 74.0 164.1 219.5 284.8 294.1 369.8 637.8 688.6 674.4 622.4 536.0 404.1 251.8 127.8 0

Note: The amount is based on cash.

9

Annual Report FY2010

0

0

0

0

0

0

0

0

0

0

0

Annual Report FY2010

2010 Performance Highlights〈〈〈Underwritten AmountThe total underwritten amount in FY2010 increased 4.7% to JPY8.6 trillion compared to theprevious fiscal year.
(Fiscal Year)

2006

14.9

2007

9.5

2008

9.7

2009

8.2

2010

8.6
3

0

6

9

12

15

(Trillions of yen)

Underwritten Amount by Insurance Type
Reinsurance 0.5 ％Export Bill
Insurance 0.2 ％Overseas Investment Insurance 2.6％

In a breakdown by insurance type, Export Credit
Insurance increased 17.3% to JPY7.3 trillion, led by the

Buyer s Credit Insurance 2.8％

recovery in exports to emerging countries after the global

Overseas Untied Loan
Insurance 8.6 ％financial crisis. On the other hand, Overseas Untied Loan

Trade Insurance for Standing
Orders from Speciﬁc Buyer
0.1％

Insurance decreased by 53.9% to JPY0.7 trillion mainly
because demand for working capital support associatedwith overseas Japanese subsidiaries decreased as thefinancial market stabilized.

Export Credit Insurance
85.2 ％

Underwritten Amount by Region
North America 3.2 ％In a breakdown by region, coverage for Asian transactions

Africa 5.0 ％was the largest at JPY4.5 trillion, or 48.1% of the total

International
Organizations
1.7 ％Oceania 6.2 ％amount, followed by Central America at 11.4% and Europe
at 10.3%.

South America 6.4 ％
Asia
48.1％

Middle East 7.6 ％Europe10.3 ％Central America11.4 ％Top Ten Countries and Regions of Underwritten Amount in FY2010(Millions of yen)

OrderCountry/Region

Underwritten
amount1

903,468

2

China
Panama (ﬂag of

convenience vessel)

3

Korea

4
5

Composition(%)

Underwritten
amountOrder

Country/Region

9.6

6

Spain

339,610

3.6

845,970

9.0

7Australia

330,140

3.5

748,581

8.0

8Brazil316,275

3.4

Indonesia

569,603

6.1

9

Taiwan313,111

3.3

Thailand

428,349

Singapore

282,494

3.0

4.6

10

Composition(%)

Annual Report FY2010

10

〈
〈
〈Outstanding Commitment

Total outstanding commitment at the end of FY2010 increased 3.9% to JPY11.9 trillion compared to the previous fiscal year.

(Fiscal Year)

2006

11.4

2007

11.7

2008

12.1

2009

11.4

2010

11.9
3

0

6

9

12

15
(Trillions of yen)

Outstanding Commitment by Insurance TypeInabreakdownbyinsurance

type,

outstanding

commitment for Export Credit Insurance was the largest
at JPY8.2 trillion, having increased 2.8% compared to theprevious fiscal year. The second largest was Overseas
Untied Loan Insurance at JPY2.2 trillion with an increaseof 6.2%.

Reinsurance 1.5 ％Buyer s Credit Insurance 4.9 ％Trade Insurance for Standing
Orders from Speciﬁc Buyer
0.1％

Overseas Investment
Insurance 6.5 ％Overseas Untied Loan
Insurance
18.1％
Export Credit Insurance
68.8 ％

Outstanding Commitment by Region
In a breakdown by region, the outstanding amount for
Asia was the largest at JPY4.8 trillion, or 38.9% of the total

South America 5.4 ％amount. The Middle East followed at JPY2.1 trillion, orOceania 6.0 ％

16.9%.

International
Organizations
1.8 ％Central America 6.1 ％North America 6.8 ％Asia
38.9 ％

Africa 7.0 ％Europe 11.0％

11Annual Report FY2010

MiddleEast
16.9 ％

Annual Report FY2010

2010 Performance Highlights〈〈〈Premium Income

Premium income for FY2010 decreased 1.1% to JPY39.8 billion compared to the previous fiscal year.

(Fiscal Year)

2006

37.9

2007

36.2

2008

37.8

2009

40.2

2010

39.8
0

10

20

30

40

50
(Billions of yen)

Premium Income by Insurance TypeIn a breakdown by insurance type, like the underwritten amount, premium income for Overseas Untied Loan
Insurance dropped to 33.9% of the total amount while Export Credit Insurance increased to 38.1%.

Trade Insurance for Standing
Orders from Speciﬁc Buyer 1.0 ％Reinsurance 2.7 ％Overseas Investment
Insurance 6.5 ％Export Bill Insurance 0.5 ％Export Credit Insurance
38.1％
Buyer s Credit Insurance
17.3 ％

Overseas Untied Loan
Insurance 33.9％

Annual Report FY2010

12

〈
〈
〈Insurance Claims Paid
Claims paid for FY2010 decreased 17.9% to JPY8.6 billion compared to the previous fiscal year.
The decrease is due to smaller claims payment for commercial events despite a slight increase in political events related
to remittance delays in Cuba. Concerns of possible loss reported by customers remain at a high level ever since theoutbreak of the financial crisis. Thus, NEXI is reinforcing the monitoring of underwritten transactions in order toprevent insurance events together with its customers as well as to make swift claims payment in case an event occurs.

(Fiscal Year)

2006

1.9

0.6

2.5

2007

Political

1.3

3.8
16.9

2008
3.3

2009

0.3

7.2

4.0

2010

2.4

Commerical

10.4

4.6

0

17.2

8.6

5

10

15

20

(Billions of yen)

Insurance Claims Paid by Region
Political/Commercial Risk
Asia 0.6％
Middle East 12.5％

Africa 0.3％

CentralAmerica
34.7％

South America
12.6％

North
America
24.7％

Europe 14.6％

Political Risk

Commercial Risk

Middle East
0.3％

Africa 0.7％

South
America
27.3％

Central America 2.7％

Middle East
23.1％

Asia 1.0 ％North
America
46.0％

Central America
71.8 ％
Europe 27.1％

Top Five Countries / Regions in terms of Insurance Claims Paid
(Millions of yen)

13

Order

Country/Region

1

Cuba

2

Total

Political Risk

Commercial Risk

2,851

2,851

0

Canada

2,118

0

2,118

3

Ukraine

1,165

0

1,165

4

Argentina

1,084

1,084

0

5

the United Arab Emirates

1,045

0

1,045

Annual Report FY2010

2010 Performance Highlights

Annual Report FY2010

Insured Events in 2010

(Based on the data as of the end of May 2011)● Insured Events by Risk Year-on-Year Changes
In FY2010, the number of commercial risk events was still higher than the level of FY2009, despite a climate
where the effect of the global financial and economic crisis grew less significant. They were caused in largepart by buyer defaults; however, pre-shipment events existed as well. On the other hand, the number ofpolitical events was about the same as FY2009.
Claims payment for commercial events in FY2010 included payment for events that occurred in FY2008 and
FY2009. Claims payment for political events included payment for events related to remittance delays inCentral America, in a continuing trend from FY2009.
(Millions of yen)Type of Risks

Commercial Risk
EventsPolitical Risk
EventsOccurrenceof
Events

FY2010Year-on-Year change

36,151

46,73429.3

12,031

11,094(7.8)

48,182

57,82820.0

Commercial Risk
EventsPolitical Risk
Events

7,176

4,603

(35.9)

3,268

3,972

21.5

Total

10,4458,574(17.9)

Total

Claims Paid

FY2009［ Changes in Amount of Insured Events and Claims Paid (From FY2008 to FY2010) ］(Millions of yen)

Political Risk Events(Millions of yen)

Commercial Risk Events2008

Occurrence of Events
Claims Paid

2008

Occurrence of Events
Claims Paid

2009

2009

2010

2010
0

10,00020,00030,00040,0000

10,00020,00030,00040,00050,000● Occurrence of Insured Events by Region
In FY2010, the majority of commercial events continued to occur in Asia (including the Middle East).
Political events were spread across all regions except Oceania, and the principal causes were economic
sanctions by UN and other organizations in Asia, remittance delay in Central America, and restriction ofcurrency exchange in South America.

［ Amount of Insured Events by Region (FY2010) ］

Political Risk Events

Commercial Risk Events(Millions of yen)

6,000

45,0005,000(Millions of yen)

50,00041,25840,0004,166

35,0004,000

30,000
2,844

3,000

25,0002,514

20,0002,000

15,000

1,000
0

687

10,000

883
0

Asia

EuropeNorth and South Africa
Central America
America

Oceania

5,000
0

1,520

Asia

Europe

1,082

2,352

439

82

North and South Africa
Central America
America

Oceania

Annual Report FY2010

14

〈
〈
〈Recoveries
Recoveries for FY2010 saw a large decrease of 23.8% to JPY15.6 billion compared to the previous fiscal year. This isbecause countries that rescheduled their debt successfully made repayment and the amount to be recovered has
decreased as a result.

(Fiscal Year)

2006

247.3

2007

57.5

2008

41.9

2009

20.5

2010

15.6
0

50

100

Commercial Risk 8.4 ％Political Risk
91.6 ％

Annual Report FY2010

200

250
(Billions of yen)

Recoveries by Risk

15

150

2010 Performance Highlights

Annual Report FY2010

Conﬁrming Environmental and Social Considerations● Environmental and Social Considerations in Trade Insurance(1) Environmental and Social Considerations in Trade Insurance
NEXI confirms whether appropriate environmental and social considerations are being addressed in projects that
may be covered by NEXI s insurance, in accordance with the "Guidelines on Environmental and Social Considerationsin Trade Insurance" (established April 1, 2001). Specifically, projects are screened based on the screening forms
submitted by insurance applicants, and then classified into three categories A, B, or C in descending order of level ofimpact. The environmental impact of the projects is examined based on the classification results. For example, on-site
visits are conducted for "Category A" projects.
NEXI has also adopted a system of "Objection Procedures" and accordingly appoints an examiner who works under
the direct control of the Chairman & CEO and is independent of the section in charge of the underwriting businessin order to ensure compliance with the Guidelines.

(2) Implementation results in FY2010
The number of projects screened in FY2010 was slightly lower than the previous fiscal year. However, of the total
number of screenings the number of category A projects increased from 18.0% for the previous year to 20.9%. NEXI
has made even greater efforts to ensure accuracy in the examination.

［ Number of Screenings Conducted ］(Fiscal Year)

2006

75

2007

80

2008

109

2009

111

2010

91
0

20

40

60

80

100

120

［ Percentage of Screening in FY 2010 ］［ Percentage of Screening in FY2010 by Region ］
Middle East 4.4 ％Category B 9.9 ％Oceania 1.1 ％Africa 5.5 ％Europe 8.8 ％Category A
20.9 ％

Other 12.1％
Category C
69.2 ％

Asia
44.0 ％

Central and South America
24.2 ％

Annual Report FY2010

16

業務実績
Reviewof Performance〈〈〈Underwritten AmountUnderwritten Amount by Insurance Type(Millions of yen)Type of Insurance

FY2006

FY2007

FY2008FY2009FY2010

Export Credit Insurance

14,290,499

9,084,734

8,344,955

6,231,455

7,308,903

85.2

17.3

One year or less

8,284,634

4,174,931

3,679,428

2,747,597

3,498,241

40.8

27.3

Composition（％）Year-on-year change（％）

More than one year

6,005,865

4,909,803

4,665,528

3,483,858

3,810,662

44.4

9.4

Buyer s Credit Insurance

60,80583,62641,33591,382

239,764

2.8

162.4

Export Bill Insurance

32,75829,17825,886

19,98620,1990.2

1.1

Export Bond Insurance

0

0

0

0

0

0.0

−

Prepayment Import Insurance

14

889

345

107

0

0.0

(100.0)Overseas Investment Insurance

271,949

155,228

281,717

213,193219,229

2.6

2.8

Overseas Untied Loan Insurance

189,732

101,905

984,806

1,606,754

741,082

8.6(53.9)

Trade Insurance for Standing
Orders from Speciﬁc Buyer

3,436

7,405

5,928

9,653

11,761

0.1

21.8

Export Credit Insurance for SMEs

511

370

444

646

624

0.0

(3.4)

Comprehensive Export lnsurancewith Simpliﬁed Procedure

-

-

-

-

1,392

0.0

−

39,9980.5

54.5

8,582,951 100.0

4.7

Reinsurance
Total

29,742

57,71041,552

25,885

14,879,447

9,521,044

9,726,968

8,199,062(Note 1) The total is based on the actual underwritten amount calculated by applying the exchange rate of the date of contract, not based on
methods for responding to the exchange rate.
(Note 2) In accordance with the BU rules, export credit insurance with credit terms of more than one year includes figures on insurance forcapital goods, even if the credit period is one year or shorter.

Underwritten Amount by Region(Millions of yen)

Region

FY2006

FY2007

FY2008FY2009FY2010Asia

5,100,905

4,817,700

4,437,621

3,604,106

4,506,009

48.1

25.0

Middle East

2,593,955

1,343,178

1,220,586

793,380

711,115

7.6(10.4)

Europe2,695,518

1,227,274

1,284,625

987,617965,790

10.3

(2.2)

Composition（％） Year-on-year change（％）

North America

3,718,850

634,598

617,350

842,520

302,1213.2(64.1)

Central America

910,831976,957

1,147,354

1,029,527

1,065,227

11.4

3.5

South America

402,995

484,212844,275

363,382

601,4946.4

65.5

Africa601,891

640,785

739,050

526,435

469,999

5.0(10.7)

Oceania

560,916

228,385

251,302463,329

580,589

6.2

25.3

International Organizations

74,66066,10058,023

106,123

160,2541.7

51.0(Note 1) Classification used to compute the above amount:Pre-shipment: Country of the shipment consignee
Post-shipment: Country of the payer (or country of the guarantor when guaranteed)(Note 2) The amount includes transactions that are doubly computed, i.e. for both pre-shipment (country of the consignee) andpost-shipment (country of the payer).
(Note 3) The amount is classified in International Organizations instead of regions when guaranteed by an international organization.
(Note 4) Central Asia is included in Asia. (The same applies hereafter.)(Note 5) Central and Eastern Europe and Russia are included in Europe. (The same applies hereafter.)

17

Annual Report FY2010

Annual Report FY2010

Review of Performance〈〈〈Outstanding Commitment (As of fiscal year end)

Outstanding Commitment by Insurance Type(Millions of yen)Type of Insurance

FY2006

FY2007

FY2008FY2009FY2010

Export Credit Insurance

8,746,616

9,452,265

9,336,297

7,959,765

8,184,301

68.8

2.8

One year or less

1,588,502

2,296,544

2,396,838

2,022,794

2,601,992

21.9

28.6

More than one year

7,158,114

7,155,721

6,939,458

5,936,971

5,582,309

46.9

(6.0)

Buyer s Credit Insurance

828,740

658,789

524,937

500,438

577,707

4.9

15.4

Export Bill Insurance

7,310

7,849

6,373

4,992

5,137

0.0

2.9

Export Bond Insurance

383

0

0

0

0

0.0

−

Composition（％）Year-on-year change（％）

Prepayment Import Insurance

14

589

345

107

0

0.0

(100.0)Overseas Investment Insurance

635,840

666,499

809,504

790,936

776,508

6.5

(1.8)

Overseas Untied Loan Insurance

1,139,627

820,981

1,247,619

2,030,689

2,155,666

18.1

6.2

Trade Insurance for Standing
Orders from Speciﬁc Buyer

9,518

8,514

10,554

11,952

16,2260.1

35.8

Export Credit Insurance for SMEs

105

67

83

161

168

0.0

4.5

Comprehensive Export lnsurancewith Simpliﬁed Procedure

−

−

−

−

1,332

0.0

−

Reinsurance

58,83991,129124,769

147,313

174,558

1.5

18.5

Total

11,426,992

11,706,683

12,060,482

11,446,354 11,891,603

100.0

3.9

(Note 1) The total is based on the exchange rate of each fiscal year-end.

Outstanding Commitment by Region(Millions of yen)

Region

FY2006

FY2007

FY2008FY2009FY20104,826,289

Composition（％） Year-on-year change（％）

Asia

4,318,977

5,033,273

4,852,423

4,305,435

38.9

12.1

Middle East

3,506,244

3,391,304

3,228,462

2,531,022

2,096,943

16.9(17.2)

Europe1,160,782

961,229

1,133,428

1,237,234

1,361,156

11.0

10.0

North America

746,514

485,556

616,611

869,422840,569

6.8

(3.3)

Central America

680,694

674,646

681,062735,762754,325

6.1

2.5

South America

577,912581,118

788,489

750,377

675,266

5.4(10.0)

Africa400,279

564,374

796,105

903,281864,959

7.0

(4.2)

Oceania

191,673

177,410249,099

349,574

744,995

6.0

113.1

International Organizations

154,641

159,662

95,667

158,757

227,4191.8

43.2(Note 1) Classification used to compute the above amount:Pre-shipment: Country of the shipment consignee
Post-shipment: Country of the payer (or country of the guarantor when guaranteed)(Note 2) The amount includes transactions that are doubly computed, i.e., for both pre-shipment (country of the consignee) andpost-shipment (country of the payer).
(Note 3) The amount is classified in International Organizations instead of regions when guaranteed by an international Organization.

Annual Report FY2010

18

〈
〈
〈Premium Income
Premium Income by Insurance Type(Millions of yen)Type of Insurance

FY2006

FY2007

FY2008FY2009FY2010Composition（％） Year-on-year change（％）

Export Credit Insurance

24,49923,977

17,70813,59615,15738.1

11.5

One year or less

8,216

7,315

4,786

3,866

5,754

14.5

48.8

More than one year

16,284

16,662

12,922

9,730

9,403

23.7

(3.4)

Buyer s Credit Insurance

1,004

739

1,422

1,155

6,869

17.3

494.8
0.5

268

245

221

184

185

0.5

Export Bond Insurance

0

0

0

0

0

0.0

−

Prepayment Import Insurance

0

4

3

1

0

0.0

(100.0)Overseas Investment Insurance

2,385

2,145

2,669

2,956

2,595

6.5

(12.2)

Overseas Untied Loan Insurance

8,930

7,334

14,592

21,425

13,47733.9(37.1)

86

194

196

283

399

1.0

40.9

Export Credit Insurance for SMEs

6

4

5

6

6

0.0

2.3

Comprehensive Export
lnsurance with Simpliﬁed
Procedure

−

−

−

−

6

0.0

−

Export Bill Insurance

Trade Insurance for Standing
Orders from Speciﬁc Buyer

Reinsurance

702

1,527

953

597

1,064

2.7

78.1

Total

37,88036,171

37,76940,20339,757

100.0

(1.1)

〈
〈
〈Insurance Claims Paid
Insurance Claims Paid by Insurance Type and by Risk
(Millions of yen)Type of Insurance

FY2006

FY2007

Political Commercial

Export Credit Insurance 2,185

FY2008

Political Commercial

FY2009
Political Commercial

Political Commercial

1,229 17,124

FY2010
Political Commercial

Composition Year-on-year change
（％）
（％）

1,751

434

3,667

2,438

16,858

266

9,591

3,268

6,323

7,346

3,972

3,375

85.7

(23.4)

Buyer s Credit Insurance

0

0

0

0

0

0

0

0

0

97

0

97

1,209

0

1,209

14.1

1,144.7

Export Bill Insurance

124

0

124

66

0

66

31

0

31

187

0

187

16

0

16

0.2

(91.5)

Export Bond Insurance

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0.0

−

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0.0

−
−

Prepayment Import Insurance0

Overseas Investment Insurance
Overseas Untied
Loan Insurance
Trade Insurance for Standing
Orders from Speciﬁc Buyer
Export Credit Insurance
for SMEs

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0.0

118

118

0

57

57

0

0

0

0

0

0

0

0

0

0

0.0

−

0

0

0

2

0

2

4

0

4

429

0

429

1

0

1

0.0

(99.7)

5

0

5

6

0

6

0

0

0

0

0

0

2

0

2

0.0

−

−

−

−

−

−

−

−

−

−

−

−

−

0

0

0

0.0

−

0

0

0

0

137

0

137

0

0

0

0.0

(100.0)1,305 17,159

16,858301 10,441

3,268

7,173

8,574

3,972

4,603

100.0

(17.9)

Comprehensive Export
lnsurance with Simpliﬁed
Procedure
Reinsurance
Total

0

0

0

0

0

2,431

1,869

562

3,800

2,495

(Millions of yen)

Region

FY2007

Political Commercial

FY2008

Political Commercial

FY2009

Political Commercial

FY2010Composition Year-on-year change
Political Commercial（％）（％）

Political Commercial

Asia

189

0

189

631

0

631

235

0

235

5,971

0

5,971

48

0

48

0.6

(99.2)

Middle East

40

0

40

0

0

0

0

0

0

237

0

237

1,075

11

1,064

12.5

354.2

Europe

118

0

118

517

0

517

7

0

7

150

0

150

1,249

0

1,249

14.6

732.8

North America

65

65

0

94

44

49

23

13

9

38

35

3

2,119

0

2,119

24.7

5,446.4

Central America

50

3

47

90

0

90 15,547

15,497

50

2,680

2,677

3

2,974

2,851

123

34.7

11.0

South America 1,753

1,684

69 2,396

2,393

3

1,347

1,347

0

1,207

556

651

1,084

1,084

0

12.6

(10.2)

Africa

162

118

44

57

57

0

0

0

0

0

0

0

26

26

0

0.3

−

Oceania

56

0

56

15

0

15

1

0

1

158

0

158

0

0

0

0.0

(100.0)

2,431

1,869

562 3,800

2,495

1,305 17,159

16,858301 10,441

3,268

7,173

8,574

3,972

4,603

100.0

(17.9)

Total

19

FY2006

Annual Report FY2010

Annual Report FY2010

Review of Performance〈〈〈Recoveries
Recoveries by Risk
(Millions of yen)Type of Risks

FY2006

FY2007

FY2008FY2009FY2010

Political Risk

235,065

54,28440,393

17,451

14,32791.6(17.9)

Commercial Risk

12,247

3,181

1,462

3,064

1,313

8.4

(57.1)

Total Recoveries

247,31257,46541,855

20,515

15,640100.0(23.8)

Composition（％）Year-on-year change（％）

Recoveries by Region(Millions of yen)

Region

FY2006

FY2007

FY2008FY2009FY2010Asia

23,874

7,451

6,354

8,397

5,523

35.3

(34.2)

Middle East

2,112

2,520

1,404

1,342

1,357

8.7

1.1

EuropeComposition（％） Year-on-year change（％）

100,373

31,96725,349

2,515

1,028

6.6

(59.1)

North America

0

0

1

0

778

5.0

−

Central America

3,051

2,483

480

571

193

1.2

(66.2)

7.4(32.3)

35.9

(6.3)

South America

35,435

6,882

2,230

1,705

1,155

Africa82,466

6,160

6,037

5,985

5,608

Oceania
Total

0

3

1

0

0

0.0

−

247,31257,46541,855

20,515

15,640100.0(23.8)

Recoveries in FY2010● Recoveries by Risk

Recoveries for FY2010 were JPY15.6 billion, a decrease by JPY4.9 billion (23.8%) from JPY20.5 billion of the previous
fiscal year.
In a breakdown by type of risk, recoveries for commercial risk event accounted for JPY1.3 billion or 8.4% of the total
recoveries, and the remaining 91.6% or JPY14.3 billion was comprised of recoveries for political risk events via
rescheduling.
In a breakdown by countries, the four countries with largest recoveries accounted for 75% of the total recoveries:
JPY5.5 billion from Egypt (JPY5.2 billion in the previous fiscal year), JPY4.1 billion from Indonesia (previously JPY4.6
billion), JPY1.2 billion from Jordan (previously JPY1.3 billion), and JPY1 billion from Myanmar (previously JPY1
billion).

● Recoveries by Region
In a breakdown by region, recoveries from Africa were the largest with JPY5.6 billion, or 35.9% of the total
recoveries, decreasing 6.3% compared to the previous fiscal year. By country, JPY5.5 billion was recovered from
Egypt, JPY80 million from Gabon, and JPY20 million from Kenya.
Recoveries from Asia were the second largest with JPY5.5 billion, decreasing 34.2% from the previous fiscal year
and comprising 35.3% of the total recoveries. Recoveries by country include JPY4.1 billion from Indonesia, JPY1
billion from Myanmar, and JPY0.2 billion from Hong Kong.
Recoveries from the Middle East were JPY1.4 billion (JPY1.2 billion from Jordan, JPY80 million from Iraq, JPY40
million from the United Arab Emirates), South America JPY1.2 billion (JPY0.8 billion from Argentina, JPY0.3 billion
from Ecuador), Europe JPY1 billion (JPY0.5 billion from Poland, JPY0.4 billion from Serbia), and North and Central
America JPY1 billion (JPY0.8 billion from Canada, JPY0.16 billion from the Dominican Republic).

Annual Report FY2010

20

Asia

主な引受プロジェ
Underwritten
Projects
クト

Maldives

Water Supply and Sewerage Business Investment Project
Hitachi Plant Technologies, Ltd., acquired a 20 percent stake in Male Water & Sewerage Company Pvt. Ltd. (MWSC), a
public water supply and sewerage services company owned entirely by the government of Maldives. NEXI provided
Overseas Investment Insurance for Hitachi s investment.
MWSC was founded in 1995, and its business covers
around 40% of the total population of the country.
This is the first project in which NEXI supports aJapanese company venturing into water business.
Through this project, the Japanese company stechnology and experience will be effectively put to use,
and the project will also contribute to further
accumulation of know-how of water supply andsewerage operation and management.
The insurance contract was entered into in April 2010.

Photograph courtesy of Hitachi Plant Technologies, Ltd.

Viet NamSong Bac Hydropower Plant ProjectSong Bac Hydropower JSC ( Song Bac ) of Viet Nam is constructing and operating a twin-unit hydropower plant witha capacity of 42 Megawatts on Bac River in the northern Ha Giang province in Viet Nam.
Sumitomo Mitsui Banking Corporation extended a loan to the Song Bac project and NEXI provided Overseas Untied
Loan Insurance for the loan. The loan repayment is also guaranteed by the Ministry of Finance of Viet Nam.
The development of power supply is a priority issue for Viet Nam, which is experiencing power shortages amid rapid
economic growth. The government of Viet Nam is working to solve this problem through construction of power plants
under its 6th Power Development Master Plan.
Also, the Chugoku Electric Power Co., Inc. signed a consultation agreement with Song Bac to support the project. The
contract includes design and construction advice and support with training of personnel for maintenance and operation
after start of service.
The Song Bac project is expected to help address
climate change as a renewable energy project. It has
been nominated as a project under the Bilateral Offset
Scheme that is expected to stand among future
frameworks, among them the Clean Development
Mechanism (CDM).
The insurance contract was entered into in June 2011.

Photograph courtesy of Song Bac Hydropower JSC

21

Annual Report FY2010

Annual Report FY2010

Underwritten Projects

Philippines

Manila Water Company, Inc., Water and Wastewater System
Improvement and Expansion Project
NEXI underwrote Overseas Untied Loan Insurance for financing provided by Japanese banks (ING Bank N.V. Tokyo
Branch, Mizuho Corporate Bank, Sumitomo Mitsui Banking Corporation, and Bank of Tokyo-Mitsubishi UFJ) for a water
and wastewater system improvement and expansion project undertaken by the Manila Water Company, Inc (MWC;
headquarters in Quezon City, Philippines) in eastern Metro Manila.
MWC is a private water service company established chiefly by the Ayala Group, a local conglomerate, at the time ofMetro Manila water privatization in 1997. MWC is known as a successful case of water business privatization in Asia.
Mitsubishi Corporation invests in the company as a participant fromJapan.
The Japanese government initiates active support for infrastructure andsystems exports by Japanese companies, and places priority insupporting the water sector through reinforced policy financing, such asexport insurance. This project marks the first time that NEXI has
provided Overseas Untied Loan Insurance to an overseas water project.
Closer ties with MWC through this project will enable Japanesecompanies to gain experience for their future expansion in overseas
water business.
The insurance contract was entered into in December 2010.
Photograph courtesy of Manila Water Company, Inc

Turkmenistan

Turkmenhimiya Mary Plant Project
NEXI provided insurance for contracts regarding a fertilizer plant in Mary, Turkmenistan, operated by Turkmenhimiya,a state-owned chemical concern of Turkmenistan. Export Credit Insurance was provided to a production facility
contract of about JPY60 billion made by Sojitz Corporation and Kawasaki Heavy Industries, Ltd., with Turkmenhimiya,
and Buyer s Credit Insurance was provided to a loan contract of about JPY18 billion extended by Japanese banks.
With rich resources such as natural gas and oil, Turkmenistan is one of the fastest growing countries in Central Asia.
Cotton is also an important export item for the country, and thus demand for urea fertilizer necessary for cotton
cultivation is increasing. While promoting investments in heavy chemical industry and infrastructure, the governmentof Turkmenistan is also encouraging investment in the agriculture sector. Accordingly, Turkmenhimiya s fertilizer
production project has an eye to meeting increased domestic demand for urea fertilizer and contributing to fertilizer
exports to neighboring countries in grain producing regions.
The project was awarded to Japanese companies for theirtechnological superiority, and NEXI expects it will lead to further
exports from Japan to Turkmenistan.
The insurance contracts were entered into December 2010.

Rendering of the finished plant

Annual Report FY2010

22

Central & South America

Venezuela

Carabobo Heavy Crude Oil Development Project
NEXI underwrote an Investment Insurance for Natural Resources and Energy for investments respectively by INPEXCorporation (INPEX) and Mitsubishi Corporation (MC). INPEX, MC and JOGMEC established a UK-based joint venture,
Japan Carabobo UK Ltd., to have a 5% share of the project company to develop a heavy crude oil field in the Carabobo
Block in the eastern Orinoco River Basin in Venezuela (Project).
The project company is owned by Corporacion Venezolana del Petoleo (60%) which is a subsidiary of the Venezuelan
state owned company PDVSA, Chevron (34%), Japan Carabobo UK Ltd. (5%), and Suelopetrol C.A., S.A.C.A.(1%). The
Project includes exploration of oil fields, production ofheavy crude oil, and construction of upgrader toproduce 400k barrel per day of synthetic crude oil andblended crude oil.
The insurance contract was entered into in June 2010.

Photograph courtesy of Mitsubishi Corporation

Argentina

Investment in Agricultural Business Company
Sojitz Corporation established a project company called Sojitz Buenas Tierras del Sur S.A. in Buenos Aires, Argentina, tobegin producing soybeans and grain in the wet Pampas. In cooperation with Cazenave y Asociados S.A., a leading
Argentinean agricultural business operating company, Sojitz uses approximately 11,000 hectares (equal to about twice thearea of central Tokyo) of wet Pampas land to produce and market 30,000 tons of agricultural products, including soybean,corn and wheat. Expertise in cultivation control, agricultural business management and risk handling are accumulated in
the process.
In October 2010, NEXI underwrote Overseas Investment
Insurance for Sojitz s investment in this project.
Sojitz is also considering developing agricultural businessin other South American countries, including Brazil, thathave extra capacity for production and supply. The
company plans to market agricultural products andprocessed products of these countries mainly in Asia
where demand is growing. Building such a global value
chain will contribute to stable agricultural procurement
and supply in Asia.
The insurance contract was entered into in October 2010.

Photograph courtesy of Sojitz Buenas Tierras del Sur S.A.

23

Annual Report FY2010

Annual Report FY2010

Underwritten Projects

Jamaica

JPS Power Plant Expansion Project
Jamaica Public Service Company Limited ( JPS ) is a vertically integrated electric utility company that supplies
electricity to all parts of Jamaica and in which Marubeni Corporation holds the substantial shares. As part of arenovation project, JPS expanded its existing Magotty hydropower plant to reinforce its base load power sourcewith low environmental impact, and upgraded existing transmission and distribution facilities to counter system loss
and electricity theft that are pushing up power price. The project is essential for the development of Jamaica.
NEXI underwrote Overseas Untied Loan Insurance for the USD98 million in loans provided by Citibank Japan andMizuho Corporate Bank in support of this project. Part of the loans is covered by Trade and Investment Insurance
for Preventing Global Warming, as it finances renewable energy projects, such as expansion of hydropower plant.
This project marked the first time for NEXI to underwrite
Overseas Untied Loan Insurance for Jamaica.
Providing financing support for JPS through insurance willcontribute to Marubeni s electricity business development
overseas. NEXI will continue to actively support expansionof overseas business by Japanese companies.
The insurance contract was entered into in January 2011.

Photograph courtesy of Jamaica Public Service Company Limited

BrazilBraskem Petrochemical Plant Upgrade Project
Braskem S.A., the largest petrochemical company in the Americas, built a Green Polyethylene ( Green PE ) plant in the
Triunfo Petrochemical Complex in the state of Rio Grande Sur in southern Brazil. The plant is the world s first plantthat commercially produce polyethylene from sugarcane-based ethanol with annual production capacity of 200,000 tonsof Green PE. The produced Green PE will be used in various products such as packaging for cosmetics.
Compared with a conventional polyethylene manufacturing process, sugarcane-based Green PE absorbs carbon dioxiderather than releasing and contributes to Greenhouse Gas (GHG) reduction andprevention of global warming.
NEXI underwrote Overseas Untied Loan Insurance (Trade and Investment
Insurance for Preventing Global Warming) for the USD200 million credit
facilities extended by Sumitomo Mitsui Banking Corporation and Credit
Agricole Corporate and Investment Bank, Tokyo Branch, for this project.
This project marked the first time for NEXI to provide insurance support fora bio-related project and also to provide Trade and Investment Insurance forPreventing Global Warming in the petrochemical sector, given that thisproject contributes to lower GHG emissions.
The insurance contract was entered into in February 2011.

Photograph courtesy of Braskem S.A.

Annual Report FY201024

North America & Europe

CanadaCopper Mountain Mine Redevelopment Project
Mitsubishi Materials Corporation has undertaken the Copper Mountain Mine redevelopment project in southern British
Columbia, Canada, in cooperation with a local Canadian company. The Bank of Tokyo-Mitsubishi UFJ and Mizuho
Corporate Bank provided project finance facilities for this project, and NEXI underwrote Overseas Untied Loan
Insurance (Investment and Loan Insurance for Natural Resources and Energy) for their financing.
After the production starts, approximately 150,000 tons of copper concentrate will be produced annually, all of which will
be exported to Japan.
In view of the renewed rise in copper price in recent
years, NEXI provided project finance coverage for the
first time in the non-ferrous mining sector to support
Japanese companies conducting mine development incooperation with small and middle-scale explorationcompanies overseas. This is a significant project thatwill contribute to securing stable raw material supply
for Japan's non-ferrous metal industry.
The insurance contract was entered into in June 2010.

Photograph courtesy of Mitsubishi Materials

Malta

Large-scale RORO Ships Export Project
Wilhelmsen Lines Shipowning Malta, Ltd., a Malta-based subsidiary of Wilh. Wilhelmsen ASA (a major Northern European shipping
company), agreed to purchase two large-scale RORO ships* built by MITSUBISHI HEAVY INDUSTRIES, LTD. (MHI).
The RORO ships built by MHI are among the world s largest. They are designed to carry large cargoes, such as automobiles andheavy machinery for construction, with economically and environmentally friendly features that include a ballast water treatment
system.
Japanese banks that include The Bank of Tokyo-Mitsubishi
UFJ, Ltd., extended a loan for which NEXI provided Buyer s
Credit Insurance.
This project is one instance of supporting export by
Japanese companies that offer ships with high-added value
such as energy efficiency and low environmental impact.
* RORO Ships
Roll-on/Roll-off (RORO) ships have built-in ramps and aredesigned to carry wheeled cargos that are driven on andoff the ships on their own wheels. RORO ships do not
require a crane to load and unload cargo.
The insurance contract was entered into in March 2011.
Photograph courtesy of MITSUBISHI HEAVY INDUSTRIES, LTD.

25

Annual Report FY2010

Reinsurance
Projects

Middle East & Africa

Annual Report FY2010

Underwritten Projects

Saudi Arabia

Jubail Reﬁnery Project
Saudi Aramco, a state-owned oil company of Saudi Arabia, and TOTAL S.A. of France established a joint venture under
the name Saudi Aramco Total Refining and Petrochemical Company (SATORP), to build a world-class full conversion
refinery with a capacity of 400,000 barrels per day in Jubail Industrial City on the Arabian Gulf coast. The refinery willproduce high-value oil products such as diesel and jet fuel for markets in Europe, the U.S., and Asia in addition topetrochemicals.
The refinery, the first of its kind in Saudi Arabia, is scheduled to start operation by the end of 2013. SATORP exemplifies
the country s mission to boost and diversify its economy and increase employment opportunities.
A number of Japanese companies, including Chiyoda Corporation, have received orders for plant equipment, wherecommercial banks including Mizuho Corporate Bank (facility agent) provided loans to finance the project and NEXI
underwrote Buyer s Credit Insurance for the loans by commercial banks.
NEXI s coverage of the project will financially support plant
exports by Japanese companies that have highly competitivetechnology, ultimately contributing to economic development in
Saudi Arabia.
The insurance contract was entered into in August 2010.

Photograph courtesy of SATORP

Reinsurance with
US EXIMBANK

Project to Export Boeing Aircraft to Turkish Airlines
Based on a reinsurance agreement concluded with the Ex-Im Bank of the United States (US EXIMBANK), an export
credit agency in the United States, NEXI provided reinsurance for export finance transactions involving Boeing aircraft
such as B777 exports to Turkish Airlines. Established in 1933, Turkish Airlines is the national flag carrier of Turkey andhas been experiencing marked growth in recent years.
Japanese companies have played a major role in the development and manufacture of the B777 and other Boeing
aircraft, including supply of engine parts, and havebecome major partners in international joint projects.
NEXI has been supporting exports of Boeing aircraft
to the world s major airlines, including Emirates
Airlines and Air India. NEXI s reinsurance program
contributes to the export by Japanese aerospaceindustry.

Photograph courtesy of Boeing
Annual Report FY201026

SpainSolar Thermal Power Project
Many solar thermal power plants (note 1) are planned in Spain, making use of the country s abundant solar radiation andgovernment incentives for renewable power generation. The generated power will be sold either to local distributors or to thewholesale power market in Spain. Under the Feed-in Tariff system (note 2), the power will be offtaken at a higher pricecompared with power generated by hydrocarbon fuels.
In order to further promote exports of packaged infrastructure systems by Japanese companies, the Japanese government hasannounced active support measures for eleven sectors, including renewable energy such as solar power generation (note 3). At
the same time, Japanese companies are making efforts through collaboration with overseas companies to acquire knowledge
on characteristics and management of the solar power business, which has positive growth prospects for the future.
In FY2010, NEXI underwrote Overseas Untied Loan Insurance for a solar thermal project for the first time. This was also thefirst project-financed power plant to be covered with a special provision for Trade and Investment Insurance for Preventing
Global Warming due to its contribution to reducing greenhouse gas emissions.
NEXI will continue to support Japanese companies expanding overseas in solar and other renewable energy sectors.

Solaben 2&3 Solar Thermal Power Project
Abengoa S.A., a major technology company in Spain, and Itochu Corporation will jointly construct, operate
and own two 50-MW solar thermal power plants through two
project companies: Solaben Electricidad Dos S.A. andSolaben Electricidad Tres S.A.
Sumitomo Mitsui Banking Corporation, HSBC Tokyo Branch,
Mizuho Corporate Bank, and Bank of Tokyo-Mitsubishi UFJ
extended project finance loans for this project, and NEXI
provided insurance coverage.
Insured Amount Approx. EUR 341 million
The insurance contract was entered into in December 2010

Abengoa Solar S.A. © 2011

Guzman Solar Thermal Power Plant Project
Fomento de Construcciones y Contratas S.A., a major construction company in Spain, and Mitsui & Co.
Ltd. will jointly build and operate a 49.9 MW solar thermal
power plant through a project company called Guzman
Energia S.L.
Mizuho Corporate Bank and Banco Bilbao Vizcaya Argentaria
S.A. Tokyo Branch extended project finance loans for thisproject, and NEXI provided insurance coverage.
Insured Amount Approx. EUR 227 million
The insurance contract was entered into in April 2011

Photograph Courtesy of Fomento deConstrucciones y Contratas S.A.
27

Annual Report FY2010

Annual Report FY2010

Underwritten Projects

Loan for Acciona Termosolar S.L.
Mitsubishi Corporation made 15% investment in Acciona Termosolar S.L. (AT),
which is a subsidiary of a major Spanish renewable energy company Acciona S.A.
AT has constructed and operated four solar thermal power plants in threelocations in Spain with a total output of 200 MW.
NEXI
providedinsurancecoverage for EUR 255 million
guarantee of obligation for loans(the total of which is EUR 300
million) extended by Mitsubishi
Corporation
andJapanesecommercial banks.
Insured Amount
Approx. EUR 255 million
The insurance contract wasentered into in March 2011

Photograph Courtesy of Acciona Termosolar S.L.

El Carpio Solar Complex Solar Thermal Power Project
Abengoa S.A., a major technology company in Spain, and JGC Corporation will jointly construct and own two
50-MW solar thermal plants through project companies for El Carpio Solar Complex.
NEXI provided insurance for the project finance loans extended by Sumitomo Mitsui Banking Corporation,
HSBC Tokyo Branch, BNP Paribas Tokyo Branch, and Mizuho Corporate Bank.
This is the first renewable energy project for which NEXI underwrote Overseas Untied Loan Insurance (Tradeand Investment Insurance for Preventing Global Warming).
Insured Amount Approx. EUR 353 million
The insurance contract was entered into in September 2010

Abengoa Solar S.A. © 2011（※1）
Solar thermal power plants efficiently collect the thermal energy of sunrays with solar concentrators and use it as a heat source to produce
steam, which in turn drives a turbine and generates electricity.
（※2）
The Feed-in Tariff system is a mechanism in which electricity companies are obliged to offtake electricity generated from renewable energy at
a higher price than is customary. It is being increasingly implemented in Europe as a promoting force for renewable energy.
（※3）
From Industrial Structure Vision 2010 (Report by Industrial Competitiveness Committee under the Industrial Structure Council of METI)

Annual Report FY2010

28

2010 Financial Results
1 〈〈〈Fiscal Year 2010 in Review
The Incorporated Administrative Agency Nippon Export and Investment Insurance submitted financial statements andother financial information for fiscal year 2010 ending on March 31, 2011 (its tenth year of operation) to the Minister of
Economy, Trade and Industry on June 20, 2011.

Overview of Financial Statements
Financial highlights of NEXI s business (Year end: March 31)(Millions of yen)

6th
（FY2006）

7th（FY2007）

8th（FY2008）

9th（FY2009）

10th（FY2010）

Ordinary proﬁt (loss)

5,439

1,273

1,899

5,724

5,777

Ordinary income

12,52012,706

13,306

17,286

17,111

9,189

9,616

10,051

12,504

11,08437,17834,64436,816

39,606

38,693

9,187

9,615

10,051

10,784

11,075

−

−

−

1,713

−

2,701

2,978

3,153

4,409

5,869

614

−

−

198

−

7,081

11,433

11,408

11,562

11,334

575

1,136

3,774

4,431

4,184

2,431

3,800

17,15910,441

8,574

Net claims paid

62

103

1,582

976

749

Provision for outstanding claims reserves

37

511

2,198

−

1,768

510

625

912

3,012

2,409

−

2,236

77

−

76

Year of operation(Underwriting income)(reference) Premium of original insurance written
Net premium written
Reversal of outstanding claims provision(Investment income)(Foreign exchange gain)
Ordinary expenses(Underwriting expenses)(reference) Insurance claims paid

Provision for outstanding commitments reserves(Foreign exchange loss)(Operating and administrative expenses)
Extraordinary proﬁt (loss)

6,405

7,985

7,543

7,116

7,075

18,953(84,981)(3,360)11,00915,83024,392(83,709)(1,461)

16,733

21,607

Total assets

377,995

302,164

305,703

315,683

339,262

Net worth

350,522

266,814265,359

282,092

303,699

Net proﬁt (loss)(Note) Extraordinary profit (loss) includes valuation profit or loss related to assets invested by the government.

Profits and Losses
In fiscal year 2010, net premium written increased by 3% to JPY 11.1 billion compared to the previous fiscal year.
Exports grew by 14.9% to JPY67.8 trillion after a two-year drop, leading to an increase in premium income for Export
Credit Insurance. Meanwhile premium income for Overseas Untied Loan Insurance decreased because of a decline ininsurance needs for working capital loans for overseas affiliates. Investment income was JPY5.9 billion partly resulting
from exchange of securities for super long-term government bonds with a higher interest rate. Total ordinary income
was JPY17.1 billion.
On the other hand, ordinary expenses decreased by 2% from the previous fiscal year to JPY 11.3 billion, partly due to a
23% drop in net claims paid to JPY749 million. As a result, ordinary profit was JPY5.8 billion.
Extraordinary profit was JPY15.9 billion. This includes valuation gains from receivables acquired by subrogation thatare being successfully recovered according to rescheduling agreement.
As a result, net profit for the fiscal year was JPY21.6 billion.

29

Annual Report FY2010

2010 Financial Results

Annual Report FY2010

2 〈〈〈Financial Statements

Balance Sheet［ As of March 31, 2011］(Millions of yen)Account item

AmountAccount item

(Assets)

Amount(Liabilities)
12,403

Cash and cash equivalents

Outstanding claims reserves

2,892

Securities

264,553

Reserves for outstanding commitments

19,517

Receivables subrogated by paying claims

238,008

Amount due to the reinsurer

10,132

Accrued income

989

Accrued premium

9,869

Reinsurance credit

250

Accrued amount payable

122

126

Accrued bonuses

108

Reserves for retirement allowance

278

Buildings(Note 2)

1,563

Equipment and ﬁxtures (Note 3)

Deposits received
Advance insurance premium

36
2,218

Accounts receivable

159

Other liabilities

260

Deposits

478

Total liabilities

35,563

Software

1,073
74

Other assets
Allowance for uncollectible receivables(190,283)(Net Worth)
CapitalGovernment investment
Capital surplus(Note 4)

104,352
140,658

Retained earnings
Second target period reserve fund carried forward

20,349Surplus reserves

16,733

Unappropriated retained earnings

21,607(of which proﬁt for the current year)

21,607

Total retained earnings

58,689Total net worth

Total assets

339,262

Total liabilities and net worth

303,699339,262(Note 1) Amounts between one million yen and 0.5 million yen were rounded up to one million yen. Amounts less than 0.5
million yen were omitted.
(Note 2) Accumulated depreciation on buildings is JPY175 million.
(Note 3) Accumulated depreciation on equipment and fixtures is JPY160 million.
(Note 4) The breakdown of capital surplus is as follows:(Millions of yen)

Valuation diﬀerence of receivables subrogated by paying claims

45,386

Valuation diﬀerence of rescheduled claims

49,225

Valuation diﬀerence of commercial risk subrogated receivables(3,838)Valuation diﬀerence of capitalized amount

95,271(Net)

140,658

Annual Report FY201030

1 Statement of Income［ From April 1, 2010 to March 31, 2011］(Millions of yen)Account title

AmountOrdinary income
Underwriting income
Net premium written (Note 2)
Interest income on receivables subrogated by paying claims
Investment income
Income from interest
Interest on securities
Gain on sales of securities
OthersOther ordinary income
Ordinary expenses
Underwriting expenses
Net claims paid (Note 3)
Provision for Outstanding claims reserves
Estimated amount of insurance claims recovery (Note 4)
Provision for outstanding commitments reserves
Foreign exchange loss
Operating and administrative expenses

Ordinary proﬁt
Extraordinary income
Proﬁt relating to in-kind contribution of receivables acquired by government subrogation (Note 5)
Reversal of provision for uncollectible receivables relating to in-kind contribution of receivables acquired by government subrogation
Extraordinary loss
Losses relating to in-kind contribution of receivables acquired by government subrogation (Note 5)
Other extraordinary loss(Note 6)

Net proﬁt(Note1) Amounts between one million yen and 0.5 million yen
were rounded up to one million yen. Amounts less than
0.5 million yen were omitted.
(Note 2) The breakdown of net premium written is as follows:(Millions of yen)

Premium of original insurance written
Refund of premium paid for reinsurance
Premium received for reinsurance
Premium paid for reinsurance(Net)

38,693751
1,064(29,433)
11,075(Note 3) The breakdown of net claims paid is as follows:(Millions of yen)

Insurance claims paid
Reinsurance claims recovered
(Net)

8,574
(7,825)749

17,111
11,084
11,075
9
5,869
3
4,715
1,152
158
158
11,334
4,184
749
1,768
(743)
2,409
76
7,075
5,777
16,972
3,815
13,156
1,141
1,071
70
21,607(Note 5) The profits and losses related to assets investedby the government were entered as
extraordinary income and loss.
(1) Breakdown of profits related to assets invested by thegovernment(Millions of yen)Interest income
Bad debt recovered(Total)

3,815
0
3,815

(2) Breakdown of losses related to assets invested by thegovernment(Millions of yen)

Bad debt loss
Foreign exchange loss
(Total)(Note 4) The breakdown of the estimated amount of insurance claims recovery is as follows:

0
1,071
1,071
(Millions of yen)

（1）
Capitalized and evaluated amount of subrogated receivables in connection with rescheduling agreements
Political-risk subrogated receivables(0)
Reversal of provision for uncollectible receivables
(166)
（2）
Capitalized and evaluated amount of subrogated receivables in relation to commercial risk claims paid
Commercial-risk subrogated receivables(363)
Diﬀerence of estimated value between the current year and the previous year concerning(356)
subrogated receivables capitalized in line with the outstanding claims provision
Bad debt loss
3
Provision for uncollectible receivables
139(Total)(743)(Note 6) Other extraordinary loss is JPY70 million for loss on disposal of fixed assets.

31

Annual Report FY2010

Annual Report FY2010

2010 Financial Results

Statement of Cash Flows［ From April 1, 2010 to March 31, 2011］(Millions of yen)

Ⅰ. Cash ﬂows from operating activities
Premium received

34,411

Reinsurance premium paid

(29,612)

Insurance claims paid

(8,574)

Reinsurance claims received

8,067

Income from recovery of receivables subrogated by paying claims

8,934

Payment of recovered receivables subrogated by paying claims(8,370)

Income from recovery of receivables subrogated to the government

7,975

Payment of recovered receivables subrogated to the government(7,975)

Personnel expenses(1,471)Other operating expenses(4,043)
342

OthersSubtotal

(315)
7,139

Interests received−

Interests paid
Net cash provided by operating activities

6,824

Ⅱ. Cash ﬂows from investing activities
Purchase of securities(48,231)

Redemption and sales of securities

46,094Purchase of ﬁxed assets(1,637)

Net cash (used in) provided by investing activities(3,773)

Ⅲ. Cash ﬂows from ﬁnancing activities
Net cash (used in) provided by ﬁnancing activities
Ⅳ. Foreign exchange diﬀerence related to cash and cash equivalents−(21)

Ⅴ. Net increase (decrease) in cash and cash equivalents

3,030

Ⅵ. Cash and cash equivalents at the beginning of the current year

9,373

Ⅶ. Cash and cash equivalents at the end of the current year

12,403(Note 1) Amounts between one million yen and 0.5 million yen were rounded up to one million yen. Amounts less than 0.5 million
yen were omitted.
(Note 2) The breakdown of cash at the end of the current year by title of balance sheet is as follows:(Millions of yen)

Cash and cash equivalents
Balance of cash at the end of the current year

12,403
Total 12,403

Annual Report FY201032

NotesⅠ．
Important Accounting Principles

NEXI s financial base. The securities held by NEXI include government bonds,

１.Application of revised accounting standards for incorporated
administrative agencies

municipal bonds and government-backed bonds.
ｂ．
Financial instruments and risk

Starting from the fiscal year ending March 31, 2011, NEXI s financial statements are

The receivables subrogated by paying insurance claims are exposed to debtor

being

countries or debtors credit risk. The securities are exposed to interest rate risk andprepared

under

the

revisedaccounting

standards

forincorporated

administrative agencies.

market fluctuation risk.

２．
Accounting procedures for depreciationｃ．
Financial instruments and risk management⑴ Depreciation of tangible fixed assets⑴ Country risk management

Depreciation of tangible fixed assets has been calculated by adopting a straight-line

In concluding insurance contracts (that could cause the acquisition of the receivables

depreciation method. Useful life and residual value have been calculated based on

subrogated by paying insurance claims), NEXI s Country Risk Analysis Groupthe same methods and standards stipulated in the Corporation Tax Act.

conducts risk assessment by gathering information through the Berne Union and⑵ Amortization of intangible fixed assets

OECD, researching and evaluating country risk. Contracts concluded are monitored

Amortization of trademark right has been calculated using a straight-line
depreciation method that fixes its residual value at ¥0 in accordance with theestimated useful life stipulated in the Corporation Tax Act. Amortization of computer
software being used in-house has been calculated by a straight-line depreciation
method that sees the usability period (4 years) as estimated useful life and sets its
residual value at ¥0.

by the Monitoring Committee for continued risk management.
⑵ Credit risk management
For the management of credit risk of an export contract counterparty (overseas buyer), NEXI s
Credit Administration Group conducts a credit check and assessment of the overseas buyers.
⑶ Market risk management
Market risk such as interest rate and price fluctuation associated with investment in３．
Calculation basis of reserves for retirement allowances and estimates

To prepare for retirement allowance payments to board members and employees, areserve is provided based on 100% of the amount of retirement allowances requiredby rules for the payment of retirement allowances to board members and by thosesecurities is managed by the Fund Operation Meeting that discusses NEXI s investment
policy and checks the investment status. In addition, NEXI s Accounting Group, thesecretariat of the Fund Operation Meeting, is monitoring the bond market and liquidity risk.
ｄ．
Supplementary explanation regarding fair value of financial instrumentsthat apply to employees, respectively. With regard to estimated increase in retirement

Fair value of the financial instruments is based on the quoted market price. If theallowances with no reserves set aside in accordance with the statement ofmarket price is not available, the fair value is based on the reasonably assessedadministrative services costs, it is computed by deducting retirement allowancevalue. Fair value of financial instruments is measured based on certain assumptions,estimate at the end of the previous fiscal year for those who resigned from theamount arrived at by deducting the retirement allowance estimate at the end of theprevious fiscal year from the retirement allowance estimate at the end of the current
fiscal year for all employees at the end of the current fiscal year.

and it might differ if measured based on different assumptions.

２．
Fair value of financial instruments

The carrying amounts on the balance sheet, fair value and differences as of the endof the fiscal year 2010 are as follows:４．
Calculation of reserves for outstanding commitments, outstanding claims reserves,receivables subrogated by paying claims, and allowance for uncollectible receivables

Reserves for outstanding commitments, outstanding claims reserves, receivables
subrogated by paying claims, and the allowance for uncollectible receivables havebeen dealt with by calculating the respective amount in accordance with the following
ordinance: Concerning the calculation methods ordained by the Ministry of Economy,
Trade and Industry, pursuant to the articles of the ministerial ordinance with regard to
the finance and accounting of the Incorporated Administrative Agency Nippon Export
and Investment Insurance (2001.03.27 Trade No.2).

５．
Calculation of accrued bonuses

Accrued bonuses for board members and employees are provided based on theamount remaining in the fiscal year according to rules for the remuneration of board
members and employees, respectively.

６．
Valuation standards and methods for securities(Millions of yen)
Carrying amount

Fair value

Differences

12,403

12,403−

264,553

271,657

7,103

238,008(190,283)
47,725
324,681
10,132
10,13247,725
331,785
10,132
10,132

−
7,103
−
−

(1)Cash and cash equivalents(2)Securities
Held-to-maturity securities(3)Receivables subrogated by paying claims
Receivables subrogated by paying claims
Allowance for uncollectible receivables(*)(Net)
Assets(4)Amount due to the reinsurer
Liabilities⑴ Held-to-maturity securities are valued at amortized cost (using the straight-line method).

(*) Allowance for uncollectible receivables associated with receivables subrogated⑵ Other securities without market value are stated at cost using the moving-average cost method.

by paying claims is deducted.

７．
Valuation of foreign-currency receivables and payables(Note1) Fair value measurement of financial instruments and securities

Foreign-currency receivables and payables are converted into Japanese yen at fiscal
year-end exchange rates.

⑴ Cash and cash equivalents
Fair value of deposits with no stated maturity is equal to carrying value, since it

８．
Calculation of opportunity costs in the statement of administrative services costs⑴ Calculation of opportunity costs for the use of national property without charge

approximates the carrying value.
⑵ Securities

Opportunity costs arising from using national property free of charge for the offices

Fair value of securities is based on the quoted market value or value quoted byand other facilities of NEXI have been calculated by referring to land rent andfinancial institutions. Carrying amount, fair value and differences of held-to-maturity

building rent in the surrounding area: computer room on the second floor of the

securities (in accordance with the accounting standards for incorporated

annex to the main building of the Ministry of Economy, Trade and Industry.

administrative agencies and notes) are as follows:(Millions of yen)

⑵ Interest rate for the calculation of opportunity costs relating to investment by the government
The yield of 10-year government bonds (1.250%) has been applied.

Type of securities Carrying amount Fair value

９．
Accounting procedure for consumption tax

Consumption tax accounting is based on the tax included method.

１０．
Decommissioning liabilities

Fair value>Carrying amountGovernment
bonds andmunicipal bonds

Fair value≦Carrying amountGovernment
bonds andmunicipal bonds

Regarding security deposit on office lease, restoration fee that should be deemed
non-refundable in the event of vacating the office space is not included in decommissioning
liabilities. Restoration fee has been determined based on a fair and reasonable estimate, andonly the portion to be posted for the current fiscal year has been calculated.
Restoration liabilities under the office lease have not been recorded as

235,333 242,963

7,631

29,221

28,693(527)

264,553 271,657

7,103

decommissioning liabilities as it is impossible to make a fair and reasonable estimate of

The aggregate sale price of held-to-maturity securities sold during the fiscal year

them because the lease period is not specified and at present there is no plan to

is JPY33.2 billion. The aggregate gain on sale is JPY1.2 billion. These securities,

vacate the currently leased office.

which had been purchased before the previous medium term, were sold for the

１１．
Changes to the accounting principles

reinvestment into higher yielding securities in response to the changing interest-rate(Applying accounting standards for decommissioning liabilities)

environment. Therefore they continue to be classified as held-to-maturity securities inStarting from the fiscal year ending March 31, 2011, NEXI s financial statements havebeen

prepared

under

the

revisedaccounting

standards

forincorporated

administrative agencies and notes on the revised accounting standards foraccordance with the provision of Note 23 (2) of the accounting standards forincorporated administrative agencies.
⑶ Receivables subrogated by paying claims

incorporated administrative agencies. In accordance with the revised standards andRegarding receivables subrogated by paying claims, allowance for uncollectible

notes, ordinary profit and net profit decreased by JPY12 million and administrative

receivables is recorded pursuant to the ordinanceservices costs increased by JPY12 million.

methods specified by the Ministry of Economy, Trade and Industry, pursuant to theⅡ．
Financial Instruments
１．
Financial instruments

33

Total

Differences

Concerning the calculation

articles of the ministerial ordinance with regard to the finance and accounting of theIncorporated Administrative Agency Nippon Export and Investment Insurance (2001/ 03 / 27 Trade No.2).

ａ．
Management of financial instruments held by NEXI

Allowance for uncollectible receivables associated with receivables subrogated by

NEXI is engaged in the trade and investment insurance business. Recoveries ofpaying political risk claims is calculated using a ratio based on the valuation by thereceivables subrogated by paying claims are invested in securities to strengthen

global financial market regarding repayment prospects of each debtor country or

Annual Report FY2010

Annual Report FY2010

2010 Financial Results

using a given ratio.

(Note2) Expected payment and redemption amount of money claims andAllowance for uncollectible receivables associated with receivables subrogated by

securities with maturity after the fiscal year end

paying commercial risk claims is calculated in two different ways. As for receivables(Millions of yen)from debtors that are actually bankrupt or nearly bankrupt, allowance is calculated
by deducting foreclosure estimates and estimated amount recoverable under a

1 yearor less

payment guarantee. As for receivables from other debtors, allowance is obtained by
calculating loss estimates based on the present value of estimated future cash flow

Securities
Held-to-maturity
securities

or estimated amount recoverable by foreclosure or under a payment guarantee.
Fair value of receivables subrogated by paying claims is equal to the carrying value
at the fiscal year end less allowance for uncollectible receivables, since itapproximates this net carrying value.
⑷ Amount due to the reinsurer
Fair value of amount due to the reinsurer is equal to the carrying value, since it

More than More than More than More than
1 year
3 years
5 years
10 years More than Undeterminedthroughthroughthroughthrough
20 years(*)
3 years
5 years 10 years 20 years

14,500 13,000

1,000 64,000 171,500‑‑

Receivables
subrogated bypaying claims

6,225 14,649 21,729 42,037 56,028

205 97,136

Total

20,725 27,649 22,729 106,037 227,528

205 97,136

approximates the carrying value as they are settled in a short period of time.

(*) The receivables subrogated by paying claims that are in arrears areclassified as Undetermined.

Ⅲ．
Account Titles Used by NEXI（1）Balance sheet
Account title

description

Receivables
subrogated bypaying claims

Total assets of receivables subrogated by NEXI s paying claims and the estimated amount of potential subrogated receivables (recorded
as assets with outstanding claims reserves being reported)

Accrued income

Total accrued interest on time deposits, securities and receivables subrogated by paying claims (receivables subrogated by paying political risk
claims) as of the end of the fiscal year.
As for receivables subrogated by paying political risk claims, accrued interest is included in the case the receivables are deemed collectible.

Accrued premium

Accrued insurance premium incurred associated with insurance application.

Reinsurance credit

Amount receivable from the government such as reinsurance claims

Outstanding
claims reserves
Reserves foroutstanding
commitments

Amount considered necessary under future insurance contracts to cover incurred losses or losses recognized as having been incurred at the endof the fiscal year, recorded based on the ordinance Concerning the calculation methods ordained by the Ministry of Economy, Trade and Industry,
pursuant to the articles of the ministerial ordinance with regard to the finance and accounting of the Incorporated Administrative Agency Nippon
Export and Investment Insurance (2001.03.27 Trade No.2).
Amount reserved to prepare for possible future claim payments under insurance and reinsurance contracts, recorded based on the ordinanceConcerning the calculation methods ordained by the Ministry of Economy, Trade and Industry, pursuant to the articles of the ministerial ordinance withregard to the finance and accounting of the Incorporated Administrative Agency Nippon Export and Investment Insurance (2001.03.27 Trade No.2).

Amount due to thereinsurer

Amount payable to the government such as reinsurance premium

Advance insurance
premium

Insurance premium received with NEXI s obligation starting from the next fiscal year or later

Capital surplus

The valuation difference of an in-kind contribution of receivables acquired by government subrogation○Valuation difference of receivables subrogated by paying claims
Valuation difference of receivables acquired by subrogation and contributed in-kind by the government (excluding accrued income) was
included in the capital surplus (for the fiscal years ending March 2003, 2004 and 2005), in accordance with an ordinance concerning a partial
revision of the Ordinance of Finance and Accounting (Ministry of Economy, Trade and Industry Ordinance No. 49 of March 31, 2003)○Valuation difference associated with capitalization
Since the fiscal year ending March 2006 (FY2005), receivables acquired by subrogation and contributed in-kind by the government that were
capitalized and evaluated for the first time have been included in the capital surplus, in accordance with an ordinance concerning a partial
revision of the Ordinance of Finance and Accounting (Ministry of Economy, Trade and Industry Ordinance No. 100 of October 28, 2005).

（2）Statement of income

Net premium written

Amount calculated by deducting reinsurance premium paid from premium written. Premium written includes premium received from foreign
ECAs.

Net claims paid

Amount calculated by deducting reinsurance claims recovered from insurance claims paid. Insurance claims paid include claims paid toforeign ECAs.

Provision for outstanding
claims reserves

Provision for outstanding claims reserves

Estimated amount of
insurance claims
recovery

Valuation gain or loss of receivables subrogated by paying insurance claims

Provision for outstanding
commitments reserves

Provision for outstanding commitments reserves for the current fiscal year

Extraordinary income

Interest income and reversal of provision for uncollectible receivables relating to assets invested by the government (receivables subrogatedby paying claims)

Extraordinary losses

Foreign exchange loss relating to assets invested by the government (receivables subrogated by paying claims)

Annual Report FY201034

Third-Term Objectives
第三期中期計画
NEXI has set the medium term-objectives for the third term of
FY2009 to FY2011 and implements various measures and policies
based on these objectives. A summary of these objectives is outlined
below.

1

Measures to improve the quality of NEXI's services and other operations

Improvement of products
From the perspective of securing the international competitiveness of Japanese companies, we will take the demands ofcustomers and the requirements of trade and industry policies into consideration, and improve the insurance products wecurrently oﬀer as well as develop new products in order to provide high-quality services equal to those in other countries.

Improvement of services
Adopting the customer perspective at all times, we will make eﬀorts to improve and enhance our services by reducing
the burden on customers and promoting prompt decision-making and business proceedings. Further, we will build a
relationship of trust with our customers by ensuring increased transparency of operations and the enforcement ofcompliance.

Streamlining the system to ascertain and reﬂect customer needs and to enhance risk analysis/assessment
We will increase publicity activities regarding existing insurance products and more thoroughly meet customer needs,
making use of customer feedback on our insurance products. Further, we will streamline the system for enhanced
risk analysis/assessment by reﬁning risk management methods and improving the expertise of our staﬀ.

Emphasizing strategic priority policy issues
In light of our role as the public institution responsible for developing Japan s overseas trade and taking heed of
the requirements regarding Japan s trade policies, industrial policies, natural resources and energy policies, etc.,
we will give priority to accomplishing such policy issues as securing a stable supply of natural resources andenergy, establishment of an environmentally friendly society and international development of SMEs. We will
qualitatively and quantitatively expand the scope of insured risks with regard to these areas.

Smooth entry of private insurers into the market
We will continue to improve the diversity of the products in order to provide our customers with greater choice,and will establish an environment for the smooth entry of private insurers into the market.

35

Annual Report FY2010

Annual Report FY2010

2

Third-Term Objectives

Improvement in Business Eﬃciency

Promotion of eﬃcient business operations
When making disbursements, we will be thoroughly cost-conscious and fully consider cost-eﬀectiveness in orderto improve the eﬃciency of our business operations.
We will further improve operation eﬃciency by measures such as rationalization of the operating process,while also revising the structure of the organization and personnel assignment. We will also increasecost-eﬀectiveness in all areas including personnel expenses. Operating costs shall be lower than the level
achieved in the second medium-term objectives period.
In FY2010, we will reduce the workforce by at least 5% compared with the level in FY2005. We will also
make necessary revisions for appropriate wage standards.
We will steadily implement reforms based on program for reviewing no-bid contracts
We will promote the eﬃciency of operations through consignment of part of our oﬃce work and business
operations to private ﬁnancial institutions, etc.

Eﬃcient development and smooth operation of the information system
We will realize eﬃcient and prompt operations and improved services through eﬃcient and prompt maintenanceand upgrading of the current information system. Further, we will make eﬀorts to keep the maintenance costlower than that of the previous system.

3

Improvement in composition of ﬁnances

Reinforcement of ﬁnancial foundation
In order to continuously and stably oﬀer our customers assured peace of mind, we will improve the eﬃciency ofbusiness operations and hold down expenditure by thorough risk management, as well as reinforcing appropriate
management and recovery of debts incurred by insured risks, and will maintain a sound ﬁnancial foundation.

Reinforcement of credit management and debt recovery
We will strengthen our recovery capacity through meticulous management of credit data and close coordination
with relevant governmental organizations. Further, we will strive to prevent the occurrence of insured risk andto alleviate any loss by swiftly implementing necessary measures in cooperation with customers and relevant
governmental organizations.

4

Fostering of personnel with high degree of specialist knowledge
We will further raise the specialization level of our staﬀ through a more comprehensive in-service training
system and eﬀective implementation of a personnel system that places a high priority on the development ofexpertise.

Annual Report FY201036

お客様憲章Customer Service Charter
notify you to that effect along with the reason for the delay and

ⅠNEXI Spirit

the expected date of response.

（1）
Our mission is to assist customers to conduct international

Should the group in charge find any inadequacy in abusiness with a sense of reassurance by reducing incidental

pre-application form, insurance application form, or other formbusiness risks. To this end, we take time to ascertain ourthat you have submitted (other than environment-related forms),

customers situations so that we can meet their needs precisely

we will notify you within five business days of our receipt at theand provide efficient and high-quality services, thereby enhancing

latest.

customer satisfaction and establishing mutual trust.

If you have any questions about NEXI s insurance system with（2）
By implementing our customer-first policy, we will continue to:regard to a specific project, please inform the group in charge or

Improve the quality of service,

the Customer Relations Office. We will respond within five

Broaden the range of risk coverage,business days at the latest. Should we find it difficult to respond

Promote efficient operations, andwithin the stated period, we will promptly notify you to that

Increase management transparency.

effect with the reason for the delay and the expected date of
response.

Ⅱ NEXI s Pledge to Customers（4）
Meeting our customers demands and business needs

We are committed to:

We would be very appreciative if you could give us sufficient
time when consulting with us, as our assessment may take（1）
Providing insurance products that make our customers feellonger than expected. If it becomes necessary to accelerate

overseas

procedures (for example, because an export contract is（2）
Providing advice to our customers from the preliminary stageYour business needs are always important to us and we will dosecureandprotected

when

conducting

transactionsof planning（3）
Promptly responding to inquiries and acting in the interests ofour customers（4）
Meeting our customers demands and business needs（5）
Promptly completing assessment and payment of insurance
claims, and（6）
Promptly allocating recoveries

proceeding more rapidly than anticipated), please inform us.
our utmost to meet your accelerated deadline. If we find it
difficult to meet the new deadline, we will immediately inform youof how long it will take to complete the necessary procedures.
（5）
Promptly completing the assessment and payment of insurance
claimsAs soon as we receive an insurance claim form, we will assessthe details in light of the insurance policy provisions todetermine the amount of the claim to be paid. We will then make（1）
Providing insurance products that make our customers feel secure
and protected when conducting overseas transactions

two months of receipt of the claim; however, in a situation where

If you suspect that your international transactions, including

more time is required for assessment, this rule does not apply.

exports, foreign investments, or overseas loans, may incur risk,

For an application for insurance claims, we may request that you

please visit our website (http://www.nexi.go.jp) and go to the

execute the obligations of notification and of loss prevention

insurance product section, or contact NEXI s Customer

and reduction that are stipulated in such documents as

Relations Office.

insurance policy provisions. In addition, we may also request

Our staff can be dispatched to your office at your request tothat you submit all necessary documents stipulated in theprovide further information on our insurance products that

insurance policy provisions and other regulations within asupport and protect your international business. Please feel freespecified time.

to contact us.

In the event that an inadequacy is found in a submitted claim（2）
Providing advice to our customers from the preliminary stage of planning

form or other document in light of insurance policy provisions or

If you plan to initiate international transactions, such as exports

other regulations, we will notify you no later than three businessor overseas investments, NEXI is ready to serve you. We will bedays after receiving the document.

pleased to talk with you at an early stage of your project s

We would appreciate your understanding and cooperation,formation and propose the most appropriate insurance products

including early submission of documents necessary forto minimize any risk involved.

assessment, so that we may pay claims within the period（3）
Promptly responding to inquiries and acting in the interests of our customers
If you have any questions about insurance products , please callor email our Customer Relations Office or the relevant group in

stipulated

in

the

insurance

policyprovisions

or

other

regulations.
（6）
Promptly allocating recoveries

charge.

When all or part of a subrogated claim is recovered, we will

Our premium calculator is available on the NEXI website topromptly allocate the recovery in accordance with insurance

estimate your insurance premium. If you give us information on

policy provisions and other contracts.

your planned transaction, the group in charge can generally

In allocating a recovery in accordance with a Paris Club debt

estimate the premium on the same day of your inquiry, or on therescheduling program or other program, we will in principle

following business day at the latest. (For medium or long-term

complete procedures of remittance to your accounts by thenon-L/G transactions, however, we will respond within fivebusiness day following the confirmation of receipt of the fullbusiness days.) If the group in charge finds it difficult to respondamount in NEXI s account.

to your inquiry within the specified time limits, it will promptly

37

a payment within the stipulated time. This is generally within

Annual Report FY2010

Annual Report FY2010

Ⅲ Information

Customer Service Charter

Ⅳ Your Comments and Complaints

A range of information is available on our website (http://www.nexi.go.jp)

Enhancing customer satisfaction is our constant aim. If you

and in our annual report. The website was renovated in April 2011 toexperience difficulty with any procedure or have a complaint about ourrealize better usability and accessibility based on requests from ourservices, please do not hesitate to contact us. Your problem will becustomers.

addressed promptly.

（1）
Please visit our website for comprehensive information on our（1）
We will do whatever is necessary to resolve any problem you may

insurance products and services.

encounter. Please provide us with the details of the problem and

The NEXI website includes the following information

what you wish to be done. We will immediately find the source of

Recent developments (including changes in systems, coverage

the problem and resolve it.

conditions, and recent underwritten projects)
Description of our insurance products (pamphlets are available)
Terms of coverage by country/region（2）
If you have any complaints about our services or our handling ofyour project, please inform the Customer Relations Office.

Insurance application procedures

For any complaints about our services, please provide theInsured events and subsequent procedures

details to the Customer Relations Office in writing or via email.

Premium calculator

The Customer Relations Office will examine your problem and

Downloadable application forms

inform you of how it will be dealt with. If it is difficult for us to takeRules concerning trade insurance (including insurance policy

immediate action, we will provide the reason for the difficultyprovisions for all of NEXI s insurance products)

and how we intend to proceed

Environmental considerations

If you have any complaint about our handling of a specific

Procurement information

project, please provide the details to the Customer Relations

Web magazine e-NEXI

Office in writing or via email. The Customer Relations Office will

WEB service

review the details and provide the results of its review without
delay. If immediate action cannot be taken, the Customer（2）
Our annual report (in Japanese and English) offers the results ofour trade insurance business and our financial statements. Other

Relations Officer will inform you of the reason and when the
problem will be resolved.

publications are also available, including the NEXI corporate
brochure and leaflets on our insurance products (though there is alimited supply of these). Please feel free to call the General
Management

andPublicRelationsGroup(Phone:81-(0)3-3512-7655) or the Customer Relations Office.
（3）For inquiries regarding our website, annual report, and any otherpublic relations matters, please contact the General Management
and Public Relations Group. (Phone: 81-(0)3-3512-7655)

Customer Relations Office（1）
NEXI has established a Customer Relations Office to provide
more efficient services to our customers in accordance with ourcustomer-first policy.

Customer Relations Office (Head Office)Phone …………… 81- (0) 3-3512-7712
Fax ………………… 81- (0) 3-3512-7687
E-mail …………… info＠nexi.go.jp（2）
The Customer Relations Office offers customer support by seeing
the situation from the customer s viewpoint. Any question or
inquiry is welcome, including questions and views concerning
trade insurance, what section of NEXI should be in charge, andspecific projects. We will take prompt action regarding thesematters.

Customer Relations Office (NEXI, Osaka)

Phone …………… 81- (0) 6-6233-4019
Fax ………………… 81- (0) 6-6233-4001

Information about NEXI's sections and groups in charge isavailable on our website.

Annual Report FY2010

38

Profile of NEXI
法人概要

From the left:Keiji Wada(Vice Chairman),Takashi Suzuki(Chairman and CEO),and Fuminori Inagaki(Vice Chairman)

Members of the Board and the Audit Board
Chairman and CEO ……………… Takashi Suzuki
Vice Chairman …………………… Keiji Wada
Vice Chairman …………………… Fuminori Inagaki
Corporate Auditor（Full Time） …… Takeshi OiwarTime）…… Takashi Imai
Corporate Audito（Part

Takeshi Oiwa
Takashi Imai
(Corporate Auditor) (Corporate Auditor)

Name
Date of Establishment
Acts
PurposeCompetent Minister
Capital
Number of Full-time
Employees

39

Annual Report FY2010

Incorporated Administrative Agency, Nippon Export and Investment Insurance("NEXI")
April 1, 2001
Act on General Rules for Incorporated Administrative Agency
Trade and Investment Insurance Act
To eﬃciently and eﬀectively conduct insurance business of covering risks whicharise in foreign transactions and which are not covered by commercial insurance.
The Minister of Economy, Trade and Industry
JPY104.4 billion (Fully contributed by the Japanese Government)(Unchanged from the previous year)
134 (As of April 1, 2011)

Annual Report FY2010

Scope of Business

Brief History

Profile of NEXI

1. To conduct trade and investment insurance business operations complying
with the regulations of Chapter 3 of the Trade and Investment InsuranceAct.
2. To conduct business which is incidental to the business stated in 1.
3. To underwrite reinsurance under the insurance obligations of international
institutions, foreign governments, or international companies that conduct
insurance business （including reinsurance） which indemniﬁes losses
similar to the losses covered by trade and investment insurance.
4. To entrust reinsurance for the insurance obligation of NEXI under the Tradeand Investment Insurance Act to international institutions, foreign
governments, or international companies that conduct insurance business（including reinsurance） which indemniﬁes losses similar to the losses
covered by trade insurance as well as the reinsurance with the Government
complying with the regulations of Chapter 4 of the Trade and Investment
Insurance Act.
Jul.1999
Dec.1999
Apr.2001

Enactment of Act on General Rules for Incorporated Administrative
AgencyEnactment of the Act which partly amended the Trade and Investment
Insurance Act
Establishment of Nippon Export and Investment Insurance(For reference) The Trade and Investment Insurance Act was enacted in March 1950 and thereafter tradeand investment insurance was managed by the Ministry of Economy, Trade and Industry（former Ministry ofInternational Trade and Industry）until the end of March 2001.

Oﬃce

Main Insurance
Products

URL

Head oﬃce

Chiyoda First Building, East Wing 3rd Floor, 3-8-1 Nishikanda,
Chiyoda-ku, Tokyo 101-8359, Japan
Phone: 81-(0) 3-3512-7650
Fax: 81-(0) 3-3512-7660

Osaka Branch

Aioi Nissay Dowa Insurance Yodoyabashi Building 8th Floor,
3-1-22 Kitahama,Chuo-ku,Osaka City,
Osaka 541-0041,Japan
Phone: 81-(0) 6-6233-4019
Fax: 81-(0) 6-6233-4001

Overseas Oﬃces

NEXI Paris, NEXI New York, and NEXI Singapore（See page 42.）

Export Credit Insurance / Buyer's Credit Insurance / Trade Insurance for Standing
Orders from Speciﬁc Buyer / Export Credit Insurance for SMEs / Intellectual
Property License Insurance / Overseas Untied Loan Insurance / Overseas
Investment Insurance / Export Bill Insurance / Prepayment Import Insurance /Investment and Loan Insurance for Natural Resources and Energy / Trade andInvestment Insurance for Preventing Global Warming / Comprehensive Export
Insurance with Simpliﬁed Procedure
http://www.nexi.go.jp

Annual Report FY201040

Organization chart (as of July 2011)
Chairman and CEO

Planning and
Administration
Department

General Management andPublic Relations Group
Strategic Planning Group
Legal Group

Vice Chairman

Personnel Group
Procurement andAdministration GroupAccounting Group
Treasury Group
System Oﬃce
System Administration
Group

Counselor

System Development& Statistics Group

Examiner

AuditorAsset Management
Department

Secretariat

Compliance Committee

Asset Planning Group
Claims Service &Recovery Group
Recovery Services Group

Underwriting
Department

Business Planning Group
Customer Relations Oﬃce
Underwriting Group
Contract Aﬀairs Group

Statistics Committee

Structured and Trade
Finance Insurance
Department

Planning and Coordination
Team
Power & Mining TeamOil & Gas Team

Monitoring Committee

Infrastructure Team
Investment and Loan
Insurance for Natural
Resources and Energy Team

Financial Risk
Management Department

Credit Analysis and Control
Group
Environment GroupCountry Risk Analysis Group
Credit Administration Group

NEXI, Osaka

Underwriting Group
Customer Relations Oﬃce

Overseas Oﬃces

NEXI, Paris
NEXI, New YorkNEXI, Singapore

41

Annual Report FY2010

Contact Information
Head Office
Chiyoda First Building, East
Wing 3rd Floor, 3-8-1
Nishikanda, Chiyoda-ku,
Tokyo 101-8359, Japan
Phone: 81-(0)3-3512-7650
Fax: 81-(0)3-3512-7660

Overseas Offices
c/o JETRO 27 rue de Berri 75008 Paris France
Phone:33-(0)1-4261-5879 Fax:33-(0)1-4261-5049

c/o JETR0 1221 Avenue of the Americas, 42 Fl,
McGraw-Hill Bldg. New York N.Y. 10020 USA
Phone:1-212-819-7769 Fax:1-212-819-7796

Osaka Branch
Aioi Nissay Dowa Insurance
Yodoyabashi Building 8th Floor,
3-1-22 Kitahama,Chuo-ku,
Osaka City, Osaka
541-0041,Japan
Phone: 81-(0)6-6233-4019
Fax: 81-(0)6-6233-4001

c/o JETR0 16 Raﬄes Quay#38-05, Hong Leong Bldg.
Singapore 048581
Phone:65-6429-9582 Fax:65-6220-7242

NEXI,Osaka

Aioi Nissay Dowa
Insurance
Yodoyabashi Building

Annual Report FY2010

42

Nippon Export and Investment Insurance
Chiyoda First Building, East Wing 3rd Floor, 3-8-1 Nishikanda,
Chiyoda-ku, Tokyo 101-8359, Japan
Phone: 81-(0)3-3512-7650 Fax: 81-(0)3-3512-7660
http://www.nexi.go.jp
Inquiries

General Management and Public Relations Group,
Planning and Administration Department
Phone: 81-(0)3-3512-7655 Fax: 81-(0)3-3512-7660
E-mail: info@nexi.go.jp