AN N UA L RE P O RT

Nippon Export and Investment InsuranceCorporate Philosophy
As t he pu b lic en tity res p o n s i b l e f o r t r ad e i n s u r an ce ,our mission i s to d e liv er pe ace o f m i n d t o o u r
c ust omers a nd c o n trib ute t o t h e h e al t h y d e v e l o p m e n t
of Japane s e o v ers e a s b u s i n e s s .

2

Annual Report FY

Action Guideline●Be a lert to c ha ng es an d m e e t cu s t o m e r n e e d s w i t h
p rof ese s s io na li s m a n d s p e ci al i ze d e xp e r t i s e .

●Enh● Enh a n c e un d e rwriti n g cap aci t y an d cap ab i l i t y w h i l e
ma intai n ta i n ing a s tro n g r i s k m an age m e n t cu l t u r e .

● Res p ec t d iv ers ity a n d w o r k as a t e am t o al l o w o u r
o rga nizn iz a ti o n to a c h i e v e i t s b e s t .

Annual Report FY

3

Message

Message from the Chairman

Nippon Export and Investment Insurance
Chairman and CEO

Atsuo Kuroda

As we publish this annual report, I would like to take this opportunity
to express my sincere gratitude to all of you for your patronage andsupport of Nippon Export and Investment Insurance (NEXI).
In 2020, as the COVID-19 pandemic unfolded, the world confronted its
worst economic crisis since the Second World War. Although theeconomic outlook remains uncertain, NEXI has been doing its utmost to
support Japanese companies throughout the pandemic by providing
trade insurance for their overseas business activities. Indications haveﬁnally begun to emerge of a normalization of economic activity. NEXI
will nonetheless continue to work relentlessly toward three goals: increasing the number of trade insurance users;
enhancing the trade insurance system; and strengthening international cooperation. Looking ahead to thepost-pandemic era, we aim to give Japanese companies a new level of assurance through the provision of tradeinsurance.
In FY2020, we made strong progress with regard to our goal of increasing the number of trade insurance users.
We met, for the ﬁrst time, our target of 900 companies using trade insurance annually. We achieved this by usinga range of new sales tools such as remote interviews and webinars and by strengthening our external
communications through regular press conferences and various types of media. We also implemented various
other new initiatives including strengthening our sales system for the domestic reinsurance scheme of Overseas
Investment Insurance and launching a rating information service.
In pursuit of our goal of enhancing the trade insurance system, we established the LEAD Initiative in response to“Infrastructure System Overseas Promotion Strategy 2025”. Through the LEAD Initiative, we aim to expand theunderwriting of loan insurance by recognizing “LEAD elements” for projects that contribute to combating climatechange, promoting digitalization, strengthening relations with foreign governments, achieving the SDGs and others.
As well as expanding the use of trade insurance, this initiative has led to an increase in the number of projects thatuse a variety of private sector funds through our fund and bond schemes.
We also made progress toward our goal of strengthening international cooperation. As well as expanding thenumber of MOUs to include Saudi Arabia and Azerbaijan, we signed cooperation agreements with international
development ﬁnance institutions such as the International Finance Corporation (IFC), the European Bank for
Reconstruction and Development (EBRD), and the Multilateral Investment Guarantee Agency (MIGA). Throughthese agreements, we aim to promote the structuring of projects for developing countries as well as thecoﬁnancing in the environmental sector. In addition, NEXI opened Japan Desks at six international development
ﬁnance institutions in the Middle East and Africa region, leading to support for speciﬁc projects in the region.
We have received strongly positive feedback on our eﬀorts against the coronavirus pandemic. We will continue
to strengthen our support for customers through measures such as by extending the deadline for providing theoverseas subsidiaries of Japanese companies with working capital procurement support. We will continue todevelop a system that gives customers greater assurance about overseas transactions as they conduct businessactivities amid unstable conditions.
In February 2021, we discovered that NEXI had violated the Trade and Investment Insurance Act in ourmanagement of foreign bonds and an incorrect collection of insurance premiums. We sincerely apologize for any
inconvenience and concern this may have caused to our customers. In response to the report submitted by aninvestigative committee consisting of external lawyers, we have acted to prevent recurrence by further
strengthening our legal compliance system. We are strongly determined to prevent recurrence and ensure legal
compliance going forward and will strive to restore trust in NEXI.
This year marks the 20th anniversary of NEXI's establishment. All of us at NEXI will continue striving to improve
the quality of our services with a "customer ﬁrst" mindset. As a public organization in charge of trade insurance
business, NEXI will continue to contribute to the sound development of foreign trade of Japanese companies by
providing assurance to as many customers as possible.
Thank you for your continued understanding and support.

4

Annual Report FY

Co n t e n ts
Corporate Philosophy & Action Guideline………………………………………… 2

Message from the Chairman ……………………………………………………………… 4
Opening Item …………………………………………………………………………………… 6
20th Anniversary of NEXI
NEXI Review of Performance
Performance Highlights……………………………………………………………… 12

Review of Performance ………………………………………………………………… 18
TOPICS ……………………………………………………………………………………… 22
NEXI Activities
Main Activities …………………………………………………………………………… 24
Cooperation with Overseas Organizations …………………………………… 28
Projects Covered by NEXI Insurance ……………………………………………… 30
SME Exports Covered by NEXI Insurance ……………………………………… 35
TOPICS ……………………………………………………………………………………… 39
Insurance Products
Trade and Investment Insurance ― How It Works ………………………… 42
Insurance Products to Support Your Business ………………………………… 43
Insurance Application Process ……………………………………………………… 50
About NEXI and Organizational Operation
Proﬁle of NEXI……………………………………………………………………………… 56
Business Plan ……………………………………………………………………………… 58
Business Operation and Management System ………………………………… 60
Organization Chart ……………………………………………………………………… 62
Access Map ………………………………………………………………………………… 63
TOPICS ……………………………………………………………………………………… 64
FY2020 Financial Results
FY2020 Financial Review ……………………………………………………………… 66
Financial Statements etc. ……………………………………………………………… 67

Figures in this Annual Report
In principle, ﬁgures in this report are rounded to the nearest unit. Therefore, the sum of
individual ﬁgures may deviate from the sum presented. Figures that fall below a unit as aresult 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.

Annual Report FY

5

NEXI celebrates its 20th anniversary Our History & Milestones (2001‒2010)
FY

2003

●Responding to SARSIn response to the SARS outbreak, we decided tocover losses caused by the outbreak throughOverseas Investment Insurance, recognizing
SARS as a "disaster caused by an unusual natural
phenomenon." This later provided a model forour response to COVID-19 in 2020.

FY

2001

●April 1, 2001
Establishment of NEXI
Nippon Export and Investment Insurance (NEXI) was established
as an incorporated administrative agency which was engaged inpractical operations in the trade insurance business, being split
from the governmental department that had directly run thebusiness. The separation between operational function andpolicy-making function was intended to streamline the business,
improve service quality and transparency, and increase staﬀ
expertise. Simultaneously, a reinsurance system was establishedunder the Special Account for Trade Reinsurance of the government.
This improved operational agility, which enabled the system torespond quickly to the accelerating overseas expansion ofJapanese companies and the changing needs for trade insurance
in foreign transactions.

●Asia bonds
As part of the ASEAN-Japan Economic Partnership
Initiative, we established a system that provided
loan insurance to Japanese companies that provided
guarantees for local currency-denominated bonds(Asia bonds) issued by Japanese companies in
ASEAN countries.
●Establishment of Intellectual Property License
Insurance
In response to increasing activity in the licensing
business, we established license insurance toco v e r t h e n o n - p a y m e n t o f r o y a l t i e s f r o moverseas business partners.

Azerbaijan / BTC pipeline project(loan insurance)

Supported projects
Taiwan / Bullet train construction
project (export insurance)

September 11 terrorist attacks
Argentina ﬁnancial crisis

FY

Bali terrorist
attacks

SARS outbreak
Iraq war

2002●Establishment of Guidelines on Environmental andSocial Considerations in Trade Insurance
We established NEXI's guidelines based on theagreement of the OECD Working Party on Export
Credits and Credit Guarantees.
●Including natural disasters and acts of terrorism as
basic risks covered by investment insurance
Following the September 11 terrorist attacks in the
U.S., NEXI began underwriting losses caused byacts of terrorism and natural disasters as basic
coverage risk for Overseas Investment Insurance.
●Establishment of Trade Insurance for Standing
Orders from Speciﬁc Buyers
We established Trade Insurance for Standing
Orders from Speciﬁc Buyers for manufacturers
engaging in continued and repeated transactions

Algeria / Arzew desalination andpower plant project(export insurance)

6

Annual Report FY

FY

2004

●Easing an insurance event certiﬁcation requirementin Overseas Investment Insurance
We improved Overseas Investment Insurance
by easing a criterion for recognizing insurance
events from six months of business suspension
to three months.
●Strengthening export support throughcollaboration on reinsurance
NEXI started providing support for the exportof parts developed and manufactured by
Japanese companies for Boeing aircrafts, withthe conclusion of a reinsurance agreement with
the Export-Import Bank of the United States.
We also concluded reinsurance agreementswith export credit agencies (ECAs) in Asian
countries, aiming to enable overseas
subsidiaries of Japanese companies in Asia to
use the trade insurance of local ECAs.

Export project of Boeing 767
aircraft for Uzbekistan Airways(reinsurance)

FY

2005

●Establishment of Export
Credit Insurance for
SMEs
NEXI established
Export Credit Insurance
for SMEs, a dedicatedproduct for supporting
exports by SMEs.
●Expanding insurance
underwriting to loans
for non-L/G projects
We strengthened andexpanded our credit
risk screening system
in response to anincreasing number ofprivate sector projects
conducted without
host government
guarantees, such as
infrastructure projects.

Thailand / Japanese
automaker Asia
bond project(loan insurance)

FY

2006

●Review of Overseas Investment
Insurance
We reduced premium rate forOverseas Investment Insurance b y
30% to further promote Japanesecompanies’ overseas investment
in natural resources and energy.
We also established a partial lossclause to cover inability of a reinvested
company to continue its business,
as well as a clause to cover extra
premiums that arise when sharesare acquired in foreign companies.
●Launch of online service
NEXI launched an online service,along with the start of operating
our trade insurance information
system SPIRIT ONE. By introducing
the service that enabled insurance
applications and various procedures
online, we increased conveniencefor customers while also improving
our administrative eﬃciency.

United Arab Emirates /Dubai Metro phase II
construction project(export insurance)

FY
FY

2008

●Cooperation with Asian countries
during the ﬁnancial crisis
For two years from October 2007,
NEXI's then-Chairman Hidehiro Konno
served as president of the Berne
Union (BU), the International Unionof Credit and Investment Insurers.
He actively promoted discussions on
the role of ECAs during the ﬁnancial
crisis. In November 2008, a special
meeting of ECAs in Asia was establishedon his initiative. The ﬁrst meeting
was held in Tokyo, where it wasagreed to promote the establishmentof a reinsurance network of ECAs in
Asia to support supply chains in theregion.
●Establishment of Trade and Investment
Insurance for Preventing Global
Warming
NEXI established an insurance
policy to support export andoverseas business related tofacilities and equipment that
contribute to the reduction ofgreenhouse gas emissions.

●Support for export of packaged infrastructure
systems
We implemented a range of measures
to strengthen support for overseas
infrastructure projects conducted by
Japanese companies. These included:
introducing the coverage of policychange risk to Overseas Investment
Insurance; strengthening our response
to local currency exchange rate risk;
and increasing the insurance coverage
ratio for co-ﬁnancing with the Japan Bankfor International Cooperation (JBIC).
●Launch of fronting service
NEXI launched a fronting service in responseto an increasing number of direct exports
f ro m o v e rs e a s subsidiaries of Japanesecompanies to buyers in third countries.
The service supports these transactions
by underwriting the reinsurance of primary
insurance contracts issued by local
insurance companies.
●Establishment of Comprehensive Export
Insurance with Simpliﬁed Procedure
We established Comprehensive Export
Insurance with Simpliﬁed Procedure, which
reduced the administrative burden for
insurance applications.

Laos / Vientiane Wattay
International Airport project(investment insurance)

Thailand military
coup
FY

2010

Global ﬁnancial crisis

Vietnam / Hydroelectric
power station construction
project (loan insurance)

European debt crisis

2007●Review of Comprehensive Insurance with Exporters’
Associations and improvement of product quality
As well as introducing an optional coverage plan for
Comprehensive Insurance with Exporters’ Association,
we increased the scope of coverage risks, expanded
the menu of options, and introduced a premium rate
system that aligned to risks with increased accuracy.
●Establishment of Investment and Loan Insurance for
Natural Resources and Energy
Amid ﬁerce international competition for resources
driven by rapid growth in energy demand in emerging
countries, we established Investment and Loan Insurance
for Natural Resources and Energy. By providing thisinsurance, we aim to help ensure a stable supply of
resources and energy.

FY

2009

●Responding to the global ﬁnancial crisis Support for
funding needs of Japanese companies’overseas
subsidiaries
In response to the sharp decline in the intermediaryfunction of ﬁnancial markets during the global ﬁnancial
crisis, NEXI provided insurance cover to procurementof working capital to meet the funding needs ofJapanese companies’ overseas subsidiaries.

Turkey / Export project for a bulk carrier(export insurance)

Kazakhstan / Uranium mine development
project (loan insurance)

Annual Report FY

7

NEXI celebrates its 20th anniversary Our History & Milestones (2011‒2020)

FY

2011

●Responding to the Great East Japan Earthquake
Following the Great East Japan Earthquake, we acted in response
to import restrictions that were imposed as a result of rumors about
radioactive contamination of export cargo. We made exporters
eligible for trade insurance payments in the event of losses
incurred due to restrictions or bans on imports in destination
countries or business countries. For aﬀected customers, NEXI
extended deadlines and relieved the insured’s administrative
burdens. NEXI also established a dedicated helpline.
●Responding to Thailand ﬂoods
Large-scale ﬂoods in central Thailand caused enormous damage
to the local subsidiaries of Japanese companies, rendering theirfacilities inoperable due to ﬂooding in industrial parks and thedisruption of supply chains. In response to this, we provided
support for working capital procurement for the aﬀected local
subsidiaries.
●Launch of network for supporting overseas business development of SMEs
To actively support the overseas business development of small
and medium-sized enterprises (SMEs), we established a nationwide
support network of 11 regional banks. In cooperation with regionalbanks who have close business relationships with local companies,
we made it easier for SMEs across Japan to use our tradeinsurance.

FY

2013

●Provision of new overseas fronting scheme
To respond to diversiﬁcation in the overseas
transactions of Japanese companies, we upgraded
the fronting scheme that we had established in2010. We developed a new fronting productthat could support sales by overseas subsidiaries
of Japanese companies within the local market,
as well as their direct exports to third countries.
We launched this product in Thailand, Singapore,and Hong Kong.

Supported projects

Australia / Roy Hill iron ore mining
project (loan insurance)

New Zealand / Geothermal power generation
project (loan insurance)

Great East Japan
Earthquake
Thailand ﬂoods
FY

2012

●Strengthening support for overseas businessdevelopment by SMEs
We improved Export Credit Insurance for SMEs,
by lowering the premium rate, raising the policy
amount limit, and extended the coverage tomedium-sized companies. We also expanded ouroverseas business support network for SMEs to
29 ﬁnancial institutions including regional banks.
●Support for overseas infrastructure projects
We pursued the securitization of NEXI-insured
loans in response to changes in the lending
environment for banks, such as the Europeanﬁnancial crisis and the implementation of new
ﬁnancial regulations. In addition, we strengthened
our support for overseas infrastructure projects
through providing insurance for Local Buyer's
Credit and loans denominated in local currencies.

UK / Intercity Express project (loan insurance)
Australia / Ichthys LNG project (loan insurance)

8

Annual Report FY

Spanish ﬁnancial crisis
Algeria hostage crisis
FY

2014

●Revision of the Trade and Investment
Insurance Act in 2014
The Trade and Investment Insurance Act wasrevised for the ﬁrst time since establishmentof NEXI. Against the backdrop of the terrorist
attacks in Algeria in 2013, the revision has
enabled NEXI’s insurance to cover the
additional costs incurred when plant
construction is suspended due terrorism orwar. In addition, we shortened the period ofbusiness suspension, a criterion for recognizing
insurance events under Overseas Investment
Insurance, from three months to one month.
Other enhancement include reinsurance for adomestic insurer as part of SME support.
●Support for the agricultural sector
We provided insurance for a project for a
Brazilian grain company to support stableprocurement of food supplies.

U.S.A. / Shale gas LNG
project (loan insurance)

FY

2015

●Revision of the Trade andInvestment Insurance Act
in 2015
The Trade Insurance andInvestment Act was revised
to materialize NEXI’s transition
to a fully government-owned
special stock company from
April 2017.
●Establishment of African
Sustainable Export andInvestment Support Insurance
NEXI established the productto promote investment andﬁnancing by Japanesecompanies in Africa.
Myanmar /Telecommunication
services project(investment insurance)

FY

2016

●Enhancing product features to support
the“Initiative to Expand Export ofQuality Infrastructure”
In response to the “Partnership for Quality
Infrastructure” and the “Initiative t oExpand Export of Quality Infrastructure”
announced by the Japanese government,
we enhanced various product features.
T h e s e included: lengthening theinvestment insurance policy period (to30 years); expanding the political risk
coverage ratio for loan insurance andinvestment insurance (to 100%); andestablishing sub-sovereign response
insurance. In addition, with the aim ofproviding an impetus for NEXI to actively
underwrite insurance, a direct investmentof JPY 65 billion was made in thesecond supplementary budget for FY2016,
which strengthened our ﬁnancial base.
●Launching Export Credit Insurance for
SMEs and AFF Sector
To support the overseas business developmentof entities in the agricultural, forestry,
and ﬁshery sector (AFF sector), we
revised our Export Credit Insurance for
SMEs, repositioning it as Export Credit
Insurance for SMEs and AFF Sector. In
addition, our support network for theoverseas business development ofSMEs, which was launched in 2011,
expanded to all 47 prefectures in Japan.
The number of partner ﬁnancial institutions
increased to 114.

FY

2018

FY

●Expanding scope of Investment
and Loan Insurance for Natural
Resources and Energy
We expanded the types of transactions
covered by the insurance,w h i c h w a s ﬁ r s t launched in 2007.
In addition to the long-term oﬀtakeof mineral and energy resources
to Japan, we established coverageof the oﬀtake of mineral and energy
resources by Japanese companies inthird countries, thereby strengthening
the support we provide for LNG-related
projects.
●Improving convenience withsimpliﬁcation of insurance
application procedures
We simpliﬁed the procedures for
Export Credit (Comprehensive)
Insurance by making it unnecessary
to submit evidence such as copies
of export contracts when applying
for insurance.

2020●Responding to economic crisis caused by
COVID-19 pandemic
To support trade and investment by Japanesecompanies during the crisis, we decided
to cover losses caused by the pandemic
through export, investment, and loan
insurance, and to continue underwriting
new policies. In addition, we worked tocover supply chain risks through investment
insurance, as well as to support working
capital procurement for overseas subsidiaries
of Japanese companies, procurement of
medical supplies through Prepayment
Import Insurance, and export to third
countries from overseas subsidiaries ofJapanese companies.
●Establishment of LEAD Initiative
To respond to the business environment
with and after the COVID-19, NEXI
announced an initiative to actively promote
the underwriting of projects, with a focus
on contributing to global carbon neutrality,
solving social issues and achieving the
SDGs.

Oman / Sharqiyahseawater desalination
project (loan insurance)

African Export-Import Bank /COVID-19 Pandemic Trade Impact
Mitigation Facility (loan insurance)

Qatar / Doha Metro construction
and maintenance project(export insurance)

U.S.-China
trade conﬂict
FY

2017

NEXI converted into a special stock company.
On April 1, 2017, Nippon Export and Investment Insurance(NEXI) transitioned into 100% government-owned special
stock company from an incorporated administrative agency.
The aim of this change was to increase the ﬂexibility, eﬃciency,
and mobility of its management while enhancing alignment
with the government and its policy intentions. The government's
Special Account for Trade Reinsurance was abolished, and all
assets and liabilities of the account were succeeded by NEXI. In
the event of emergency where NEXI is faced with diﬃculty infunding, the government will take necessary ﬁnancial measures
to ensure the reliable payment of insurance claims. In addition,
NEXI has put in place the necessary framework for strengthening
its governance by establishing a Board of Directors, Audit &Supervisory Board, as well as other organizational structures asprescribed by the Companies Act.
●Establishment of U.S. dollar-denominated trade insurance
As part of NEXI's eﬀorts to strengthen its functions under the“Partnership for Quality Infrastructure,” we began underwriting
U.S. dollar-denominated insurance for Buyer’s Credit Insurance
and Overseas Untied Loan Insurance.

Turkey / Hospital PPP project(loan insurance and reinsurance)

Hong Kong Protests

FY

COVID-19
economic crisis

2019●Establishment of Loan Insurance for Green Innovation
To further promote ﬁnancing for projects relating to environmental
preservation and climate change measures, NEXI launched
Loan Insurance for Green Innovation. This product oﬀers anincreased commercial risk coverage rate of 97.5%, a higher
rate than that of existing loan insurance.
●Establishment of fund and bond schemes
To respond to enormous demand for infrastructure investment inemerging countries and other parts of the world, and to attract newsources of funds, including institutional investors, we haveestablished a scheme for using infrastructure funds as well as
project bonds. We have concluded MOUs for business cooperation
with 13 private ﬁnancial institutions.
●Strengthening support for Japanese businesses entering theAfrican market
At the 7th Tokyo International Conference on African Development(TICAD7), we concluded MOUs with African ﬁnancial institutions forestablishing a system to support Japanese companies entering theAfrican market. We also strengthened our support for Africa by
establishing Japan Desks at each institution and holding a workshop
with the institutions and Japanese companies.

Taiwan / Changfang and Xidao oﬀshore windfarm project (loan insurance)
Annual Report FY

910Annual Report FY

NEXI Review of Performance

Performance Highlights

12

Review of Performance

18

TOPICS

22

Annual Report FY

11

NEXI Review of Performance

Performance Highlights
FY2020 Export Trends
Japan's exports in FY2020 was approximately JPY 68.4 trillion, a decrease of approximately JPY 8.5 trillion fromthe previous ﬁscal year (down 11.1% year on year). This was due to a decrease in exports of general machinery,electrical equipment, and automobiles, which were attected by the coronavirus pandemic and other factors.
Looking at the results by country and region, exports to Asia were approximately JPY 39.2 trillion (down 5.1%
year on year), of which China accounted for approximately JPY 15.1 trillion (up 2.7% year on year). Exports to the
U.S. were approximately JPY 12.6 trillion (down 17.3% year on year). Exports to the EU were approximately JPY
6.5 trillion (down 14.6% year on year). Exports to the Middle East were approximately JPY 1.8 trillion (down 23.2%
year on year).
（Millions of Yen）

Reference: Japan's exports

Total Exports
Year-on-Year Change (%)

FY2016FY2017FY201870,035,770

78,286,457

△7.4

11.8

FY2020FY201981,478,753 76,931,665 68,400,483
4.1

△5.6

△11.1

Source: Trade Statistics, Ministry of FinanceTrade and Investment Insurance Business
300

200

100

0

-100

Outstanding
Borrowings: JPY 0

-200

-300

Peak of Insurance
Claims Paid
JPY 341.9 billion-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 ，81 ，82 ，83 ，84 ，85 ，86 ，87 ，88 ，89 ，90 ，91 ，92 ，93 ，94 ，95 ，96 ，97 ，98 ，99 ，00 ，01 ，02 ，03 ，04 ，05 ，06 ，07 ，08 ，09 ，10 ，11 ，12 ，13 ，14 ，15 ，16 ，17 ，18 ，19 ，20Premium
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 37.7 36.2 40.6 74.6 51.2 24.5 72.8 31.9 46.2 35.4
incomeRecoveries and 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 17.7 24.0 31.4 35.7 40.9 44.5 31.3 31.1 31.2 23.5
other income
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 8.4 4.4 12.2 3.1 22.4 7.8 19.2 33.5 57.0 23.1
Outstanding borrowingsat 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

0

0

0

0

0

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

12

Annual Report FY

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

（Billions of Yen）

Underwritten Amount
NEXI Review of Performance

Trends in Underwritten Amount by Insurance Type
Underwritten amount in FY2020 were approximately JPY 6.1 trillion (up 4% year on year) due to a signiﬁcant
increase in Overseas Untied Loan Insurance of approximately JPY 1.4 trillion (up 226% year on year). Export Credit
Insurance was JPY 3.9 trillion (down 15% year on year), due to a decline in Japan's total exports caused by thecoronavirus pandemic and other factors.
0.1

（FY）

5.3

2017

5.9

2018

5.0

2019

4.5

2020

3.9

0

1

0.0
0.2
0.6

0.0
0.6

3

0.3
0.2

0.4

6.3

0.2

0.6
0.2

7.3

0.4

6.3
5.9

0.2

6.1

1.4

4

Buyer’s Credit
Insurance

0.7

0.4
0.1

5

6

Overseas Investment
Insurance

7

8（Trillions of Yen）

Overseas Untied
Loan Insurance

Insurance Products

Export Credit
Insurance

2

0.4

NEXI Activities

2016

0.2

Others＊Others : Trade Insurance for Standing Orders from Speciﬁc Buyers, Export Credit Insurance for SMEs and AFF Sector,
Comprehensive Export Insurance with Simpliﬁed Procedure, Export Bill Insurance, Prepayment ImportInsurance, and Reinsurance.

Underwritten Amount by Region
Asia continued to account for the largest share with 45.2% (approximately JPY 2.9 trillion), followed by Europe
and Africa with 10.5% (approximately JPY 0.7 trillion), respectively.
1.2 0.3

2019

54.5

8.0

12.4

3.9

8.6

5.5

5.7
0.8 1.1

2020

45.2

0

20

Middle East

Europe

10.5

40
North
America

CentralAmerica

9.9

60
South
America

6.3

7.0

10.5

80

AfricaOceania100（％）

Internationalorganizations

FY2020 Financial Results

Asia

8.7

About NEXI and
Organizational Operation（FY）

Top Ten Countries and Regions for Underwritten Amount in FY2020（Millions of Yen）

Rank

Country / Region

Underwritten Composition
AmountRank

Country / Region

Underwritten Composition
Amount1

U.S.A

821,045

12.1%

6

Vietnam

288,376

4.3%

2

China

489,191

7.2%

7

Mozambique

281,514

4.2%

3

Japan

348,692

5.2%

8

Taiwan256,046

3.8%

4

Thailand341,251

5.0%

9Indonesia

250,389

3.7%

5

Saudi Arabia

312,892

4.6%

10

Korea

242,640

3.6%

Annual Report FY

13

NEXI Review of Performance

Performance Highlights
Outstanding Commitment
Trends in Outstanding Commitment by InsuranceType
Outstanding commitment in FY2020 was approximately JPY 12.7 trillion (up 1% year on year).
（FY）

2016

7.4

0.9

1.5

3.4

2017

7.5

0.9

1.5

3.5

2018

7.0

2019

6.0

2020

5.3

0

0.8
0.8

Buyer’s Credit
Insurance

0.9

3.6

1.6

3.4

1.7

4

Export Credit
Insurance

1.6

0.9

0.8

4.1

14.1
14.3
14.0

0.9
0.8

12.6

0.9

12.7

8

12

16

Overseas Investment
Insurance

Overseas Untied
Loan Insurance（Trillions of Yen）

Others＊Others : Trade Insurance for Standing Orders from Speciﬁc Buyers, Export Credit Insurance for SMEs and AFF
Sector, Comprehensive Export Insurance with Simpliﬁed Procedure, Export Bill Insurance,
Prepayment Import Insurance, and Reinsurance.

Outstanding Commitment by Region
Asia accounted for the largest share with 47.2% (approximately JPY 6.2 trillion), followed by the Middle East with
11.7% (approximately JPY 1.6 trillion).
（FY）

3.4

2019

49.2

12.7

6.7

6.7

4.3

6.9

4.0

6.0

5.6

8.2

3.2 5.5

2.5

2020

47.2

0

Asia

14

11.7

20

MiddleEast

Annual Report FY

Europe40

North
America

7.9

8.1

60

CentralAmericaSouth
America80

Africa100（%）

International
Oceania organizations

Premium income
NEXI Review of Performance

Trends in Premium Income
Premium income in FY2020 was approximately JPY 31.9 billion in FY2020 (down 24% year on year).
（FY）

2016

46.5

2017

56.1

2018
2019

NEXI Activities

29.4
42.1

2020

31.9

0

10

20

30

40

50

By insurance type, Export Credit Insurance
accounted for the largest share with 31.3% Reinsurance
9.6%(approximately JPY 10.0 billion). This was followedby Overseas Untied Loan Insurance with 30.0%(approximately JPY 9.5 billion) and Overseas
Overseas
Investment Insurance with 20.5% (approximately
Investment
JPY 6.5 billion).
Insurance

Export Credit Insurance
31.3%

20.5%

Trends in Recoveries
The amount of recoveries decreased by 25% year on year to approximately JPY 23.5 billion in FY2020.
Recoveries of claims associated with political risk events, including debt rescheduling, accounted for 89%(approximately JPY 20.9 billion). The remaining 11% (approximately JPY 2.5 billion) was associated withcommercial risk events.

About NEXI and
Organizational Operation

Overseas Untied Loan Insurance
30.0%

Recoveries

0.3

（FY）

44.1

2017

24.7

2018

30.1

2019

27.7

2020

20.9

5

10

44.5
31.3

6.6

31.1

1.1

31.2

3.5

23.5

2.5

15

20

FY2020 Financial Results

2016

0

Insurance Products

Export Credit Insurance for SMEs and
AFF Sector 0.4%
Comprehensive Export Insurancewith Simpliﬁed Procedure 0.4%
Prepayment Import Insurance 0.4%
Export Bill Insurance 0.4%

Trade Insurance forStanding Orders fromSpeciﬁc Buyers
1.8%
Buyer’s Credit
Insurance
5.3%

Premium Income by
Insurance Type60

（Billions of Yen）

25

Political Risk Event

30

35

40

45

50

（Billions of Yen）

Commercial Risk Event
Annual Report FY

15

NEXI Review of Performance

Performance Highlights
Claims paid
Trends in Claims Paid
Claims paid in FY2020 were approximately JPY 23.1 billion, down 59% year on year, due to a decrease in claims paid
for political risk events.
（FY）1.0

2016
2017
2018

7.8

6.8

0.2

19.2

19.0
6.9

33.5

26.6

2019

36.6

2020

57.1

20.5

23.1

19.0

4.1

0

10

20

30

40

50

Political Risk Event

60（Billions of Yen）

Commercial Risk Event

Claims Paid by Region
South America accounted for the largest share with 58.7% (approximately JPY 13.5 billion).

Overall

Europe 6.1％
CentralAmerica
8.6％

Middle East
1.0％
North
America
0.1％
Oceania0.0％

Africa
9.5％

Asia
16.0％

Commercial Risk Event
Middle East 0.9%
Central America
2.7％
Europe7.4%

Africa 0.1%
North
America
0.1%
Oceania
0.0%

Asia
19.0％

South America
58.7%

Political Risk Event
Middle East
1.5％
Asia
1.8％
South
America
7.3％

Europe0.1％
NorthAmerica
0.0%

CentralAmerica
36.0％South America
69.7%

Africa53.3%＊There were no political risk

event-related claims paid in
Oceania.

16

Annual Report FY

Insured Events in FY2020 (Based on data as of May 15, 2021)
In s u r e d E v ents b y R isk T ype ‒Year- on- Y ear Change‒
NEXI Review of Performance

Insured events amounted to JPY 104.7 billion in reported insured losses in FY2020. The number of
insured events increased year on year, both for political risk events and commercial risk events. Whilelarge-scale events did occur, this increase also reﬂected the impact of the coronavirus pandemic, which
directly aﬀected political risk events and indirectly aﬀected commercial risk events.
Total claims paid were JPY 23.1 billion. Compared to the previous ﬁscal year, the number of political risk
events decreased signiﬁcantly, while that of commercial risk events decreased slightly. Although thenumber of insured events increased by 55% year on year, that of insurance claims decreased by 60% year
on year. This was mainly due to claims being carried over to FY2021 onward.
(Millions of yen)

Risk Type

Category

Claims Paid

Political Risk

36,597
71,148
107,745
6,923
26,57333,497

Commercial Risk
Total
Political Risk
Commercial Risk
Total amount

FY2019FY202030,37136,884
67,25536,57820,47457,05250,55354,169104,7214,071
19,00523,076

66.5%
46.9%
55.7%
△88.9%△7.2%△59.6%NEXI Activities

Occurrenceof Events

FY2018Year-on-year
Change (%)※In certain cases, debts are fully paid after submission of notification of occurrence of losses. This results inclaims either not being made at all or being made in the following fiscal year. For this reason, the number ofoccurrence of events does not directly correspond to the amount for claims paid.
※Reinsurance is recorded under commercial risk.
Insurance Products

Occurrence of Events and Claims Paid (FY2018-FY2020)
Political Risk Events（Millions of yen）

Commercial Risk Events

36,597FY201836,57830,371FY20196,923

FY2018FY20194,071

010,00050,55320,00030,000Claims paid

40,00050,00060,00026,573
20,474

71,14836,88419,005

FY2020054,16910,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000

Claims paid

Occurrence of Events

Occurrence of Events

Occurrence of Events by Region

Approximately 90% of political risk events occurred in Africa in FY2020. The remainder occurred in North,Central and South Americas, Asia, and the Middle East. Commercial risk events mainly comprised events
in South America, Asia, and the Middle East.

About NEXI and
Organizational Operation

FY2020（Millions of yen）

Occurrence of Events: Amounts by Region (FY2020)（Millions of yen）

50,00045,160Commercial Risk Events
25,00040,00020,00030,00015,00020,00010,00010,000

5,000

0

638

7

1,498

3,247

0

s
a
a
pe
ast
nia
rica
ric Africea
le E Euro l Ame Ame
d
Oc
d
a
i
r
t
h
M
Cen Sout
ia &
th &
As
Nor

0

FY2020 Financial Results

Political Risk Events（Millions of yen）
23,75818,024

6,339
2,729

3,249

70

s
a
a
pe
ast
nia
rica
ric Africea
le E Euro l Ame Ame
d
Oc
d
a
i
r
t
h
M
Cen Sout
ia &
th &
As
Nor

Annual Report FY

17

NEXI Review of Performance

Review of Performance
Underwritten AmountUnderwritten Amount by Insurance Type（Millions of Yen）
Composition Year-on-Year

Type of Insurance

FY2016FY2017FY2018FY2019FY2020

Export Credit Insurance

5,344,820

5,915,423

5,030,034

4,526,832

3,859,827

62.8

△14.7

One year or less

2,745,229

3,093,390

2,908,306

2,810,763

2,052,303

33.4

△27.0

More than one year

2,599,591

2,822,033

2,121,728

1,716,069

1,807,525

29.4

5.3

Trade Insurance for Standing
Orders from Speciﬁc Buyers
Export Credit Insurance
for SMEs and AFF Sector

5,308

8,115

7,443

10,907

15,118

0.2

38.6

9,640

8,449

9,812

13,656

14,562

0.2

6.6

Comprehensive Export Insurancewith Simpliﬁed Procedure

47,106

51,96358,024

51,20755,5450.9

8.5

Export Bill Insurance

12,255

11,82313,023

12,358

8,865

0.1

△28.3

98

981

214

2,844

9,935

0.2

249.3

401,538

641,568

712,045

601,782

622,834

10.1

3.5

Buyer’s Credit Insurance

61,898138,372

37,083

197,823

36,5650.6△81.5

Overseas Untied Loan
Insurance

366,722422,123

342,565

422,132

1,378,107

22.4

226.5

85,297

115,971

86,21962,313

142,271

2.3

128.3

6,334,680

7,314,788

6,296,462

5,901,854

6,143,627

100.0

4.1

Prepayment Import Insurance
Overseas Investment
Insurance

Reinsurance
Total

Change (%)(%)(Note 1) The total amount is calculated based on the insurance policy issue date, by applying the exchange rate on theinsurance policy contract date; and using the actual underwritten amount, not the insured amount of policies with a
special clause for foreign currency. (The same applies to the table below.)(Note 2) In accordance with the BU rules, Export Credit Insurance for capital goods is classified into transactions with more than
one year. (The same applies hereafter.)(Note 3) The floating interest coverage case is calculated based on the interest rate at the time of the conclusion of thecontract. (The same applies to the table below.)

Underwritten Amount by Region
Region（Millions of Yen）
Composition Year-on-Year

FY2016FY2017FY2018FY2019FY20203,711,316

3,878,278

3,517,050

3,422,851

2,949,704

45.2

△13.8

Middle East

571,306

696,610

661,380

500,303566,818

8.7

13.3

Europe578,369

699,293

638,012780,216

683,404

10.5

△12.4

North America

250,236

303,599

274,361

245,916

645,106

9.9

162.3

Central America

723,744703,342

647,942538,946

411,231

6.3

△23.7

South America

251,170

438,422442,875

345,257

454,955

7.0

31.8

Africa373,657

590,893304,254355,564

685,523

10.5

92.8

Oceania

119,886

100,603

81,52772,86453,8720.8△26.1

International organizations

177,508445,278

134,460

16,221

71,842

1.1

342.9

Asia

(%)

Change (%)(Note 1) Classification used to compute the above amount: Pre-shipment: Country of the shipment consignee;
Post-shipment: Country of the payer (when guaranteed, country or international organization of theguarantor).
(Note 2) Since the underwritten amount is recorded for both destination and payer countries, the total amount
does not match that of underwritten amount by insurance type.
(Note 3) The amount is classified into international organizations instead of regions, when guaranteed by aninternational 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.)

18

Annual Report FY

Outstanding Commitment (As of ﬁscal year end)
（Millions of Yen）
Composition Year-on-Year

Type of Insurance

FY2016FY2017FY2018FY2019FY2020

Export Credit Insurance

7,446,773

7,538,669

6,994,430

5,968,467

5,278,555

41.5

△11.6

One year or less2,649,163

2,497,946

2,417,727

2,291,738

1,925,810

15.1

△16.0

More than one year

4,797,610

5,040,723

4,576,703

3,676,729

3,352,745

26.3

△8.8

Trade Insurance for Standing
Orders from Speciﬁc Buyers
Export Credit Insurance
for SMEs and AFF Sector

7,313

9,868

11,383

13,211

19,077

0.1

44.4

3,028

2,817

3,817

4,491

4,893

0.0

9.0

Comprehensive Export Insurancewith Simpliﬁed Procedure

11,87913,003

16,415

10,874

19,202

0.2

76.6

Export Bill Insurance

3,283

3,556

3,224

3,831

2,536

0.0

△33.8

0

979

208

2,298

9,796

0.1

326.3

Overseas Investment
Insurance

1,460,533

1,528,398

1,596,806

1,602,810

1,697,292

13.3

5.9

Buyer’s Credit Insurance

922,836

866,474

923,657

831,832

778,010

6.1△6.5

Overseas Untied Loan
Insurance

3,439,069

3,549,807

3,608,086

3,365,701

4,084,100

32.1

21.3

821,174

827,116

830,151

783,808

831,042

6.5

6.0

14,115,888

14,340,688

13,988,179

12,587,322 12,724,503

100.0

1.1

Total

Change (%)

Insurance Products

Reinsurance(%)

NEXI Activities

Prepayment Import Insurance

NEXI Review of Performance

Outstanding Commitment by Insurance Type

(Note 1) In principle, the foreign currency denominated insurance contract is calculated based on the exchange
rate at the end of each fiscal year. (The same applies to the table below.)(Note 2) The floating interest coverage case is calculated based on the interest rate at the end of each fiscal year.
(The same applies to the table below.)

Region（Millions of Yen）
Composition Year-on-Year

FY2017FY2018FY2019FY2020Asia

6,941,039

6,896,936

6,926,035

6,463,037

6,241,627

47.2

△3.4

Middle East

2,198,618

2,050,197

1,945,372

1,673,822

1,551,671

11.7

△7.3

Europe1,105,592

1,070,642

930,638

885,666

1,047,275

7.9

18.2

North America

912,846

977,828

984,054886,348

1,076,438

8.1

21.4

Central America

755,757

769,735

653,945444,834

324,080

2.5

△27.1

South America

767,445695,229685,649

565,177

734,267

5.6

29.9

Africa751,177965,515

952,503911,884

1,081,938

8.2

18.6

Oceania

725,637

654,853624,052

520,348

426,080

3.2

△18.1

International organizations

282,677

1,084,413

868,089

787,432

727,950

5.5

△7.6

(%)

Change (%)

FY2020 Financial Results

FY2016

About NEXI and
Organizational Operation

Outstanding Commitment by Region(Note 1) Classification used to compute the above amount: Pre-shipment: Country of the shipment consignee;
Post-shipment: Country of the payer (when guaranteed, country or international organization of theguarantor).
(Note 2) Since the outstanding commitment is recorded for both destination and payer countries, the total
amount does not match that of outstanding commitment by insurance type.
(Note 3) The amount is classified into international organizations instead of regions, when guaranteed by aninternational organization.
Annual Report FY

19

NEXI Review of Performance

Review of Performance
Premium Income
Premium Income by Insurance Type（Millions of Yen）

FY2016FY2017FY2018FY201914,838

14,213

12,032

9,932

One year or less

5,240

6,600

5,441

More than one year

Type of Insurance
Export Credit Insurance

FY2020 Composition(%) Year-on-Year Change(%)
9,955

31.3

0.2

5,022

4,423

13.9

△11.9

9,598

7,613

6,591

4,909

5,533

17.4

12.7

Trade Insurance for Standing Orders from Speciﬁc Buyers

166

340

259

433

572

1.8

32.0

Export Credit Insurance for SMEs and AFF Sector

85

72

84

125

134

0.4

7.6

Comprehensive Export Insurance with Simpliﬁed Procedure

105

116

127

102

134

0.4

31.2

Export Bill Insurance

109

120

130

130

124

0.4

△4.5

0

3

3

17

126

0.4

621.6

Overseas Investment Insurance

5,264

6,102

6,188

6,454

6,516

20.5

1.0

Buyer’s Credit Insurance

3,378

6,326

1,424

9,009

1,696

5.3

△81.2

22,044

26,2207,018

15,227

9,546

30.0

△37.3

526

2,603

2,098

697

3,048

9.6

337.1

46,516

56,11729,362

42,12731,852

100.0

△24.4

Prepayment Import Insurance

Overseas Untied Loan Insurance
Reinsurance
Total(Note) The premium income is recorded at the start of the insurer’s obligation period, unlike the underwritten amount based on thepolicy issue date. Therefore, the premium income and underwritten amount may be recorded in different fiscal years.

Insurance Claims Paid
Claims Paid by Insurance Type and Risk TypeType of Insurance

FY2016FY2017

Political Commercial
Risk
Risk

Export Credit Insurance 3,499 1,000 2,499

4,205

FY2018

Political Commercial
Risk
Risk

（Millions of Yen）

FY2019

Political Commercial
Risk
Risk

FY2020

Political Commercial
Risk
Risk

114 4,091 18,082 2,175 15,907 43,996 36,344 7,652

2,831

Political Commercial Composition Year-on-Year(%)
Change (%)
Risk
Risk

104 2,727

△93.6

0

0

0

13

0

13

0

0

0

0

0

0

67

0

67

0.3

-

136

0

136

193

0

193

78

0

78

150

0

150

180

0

180

0.8

20.1

13

0

13

3

0

3

0

0

0

6

0

6

0

0

0

0.0

-

Export Bill Insurance

31

0

31

0

0

0

10

0

10

35

0

35

84

0

84

0.4

140.8

Prepayment Import Insurance

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0.0

-

0

0

0

100

100

0

2,941 2,941

0

234

234

0

1,797 1,797

0

7.8

668.2

114

0

0

0

1,807 1,807

0

117

0

117

2,287 2,170

117

Overseas Investment
Insurance

Overseas Untied Loan
Insurance

114

0

1,047

0 1,047 13,839

Reinsurance

2,943

0 2,943

Total

7,782 1,000 6,782 19,243

Buyer’s Credit Insurance

891

RegionFY2016

0 11,724

50.8

△0.3

4,106

0 4,106

17.8

444.1

214 19,029 33,497 6,923 26,573 57,052 36,578 20,474 23,076 4,071 19,005 100.0

△59.6

9,253

0 9,253 11,760

0

1,325

0 1,325

891

755

0

755

（Millions of Yen）

FY2017

Political Commercial
Risk
Risk

0 3,662 4,385

FY2018

Political Commercial
Risk
Risk

112 4,273 12,477

FY2019

Political Commercial
Risk
Risk

0 12,477 6,154

FY2020

Political Commercial
Risk
Risk

Asia

3,662

Middle East

872

29

843

287

2

286 5,646 2,103 3,543 34,348 32,259 2,090

Europe

245

0

245

542

0

542 1,115

North America

503

0

503

25

0

25

Central America

0

0

0

0

0

0

32 6,121 3,687
235

2 1,401

6.1

3,141.0

0

27

0.1

△63.7

61 1,978 1,466

511

8.6

△51.9

297 13,246 58.7

14.4

43 1,403

187

71

116

75

32

43

40

0

40 4,114 4,053

Africa

884

652

233

65

0

65 2,941 2,941

0

106

0

Oceania

232

0

232

0

0

0

0

0

371

202

Total

7,782 1,000 6,782 19,243

100 13,840 11,090 1,807 9,283 11,841

△40.1

62

△99.3

0

320 1,064 13,940

73 3,614 16.0
1.0

43

1,384

Political Commercial Composition Year-on-Year(%)
Change (%)
Risk
Risk

174

1 1,114South America

Annual Report FY

9.9 1,854.5

0 11,760 11,724

0 13,839

Claims Paid by Region

20

12.3

Trade Insurance for Standing
Orders from Speciﬁc Buyers
Export Credit Insurance for
SMEs and AFF Sector
Comprehensive Export Insurancewith Simpliﬁed Procedure27

0 11,841 13,544

106 2,198 2,170

28

9.5

1,974.6

4

4

0.0

△98.8

214 19,029 33,497 6,923 26,573 57,052 36,578 20,474 23,076 4,071 19,005 100.0

△59.6

0

169

0

Recoveries

Type of Risk
Political Risk
Commercial Risk
Total

（Millions of Yen）
Composition Year-on-Year

FY2016FY2017FY2018FY2019FY202044,141

24,69630,06827,73020,926

89.2

△24.5

327

6,575

1,052

3,467

2,533

10.8

△26.9

44,46831,271

31,121

31,19723,458

100.0

△24.8

Composition Year-on-YearFY2020FY2019FY2018(%)

Change (%)

5,895

1,995

2,368

3,628

3,845

16.4

6.0

Middle East

11,953

17,374

11,461

11,93016,897

72.0

41.6

594

713

683

771

835

3.6

8.4

4

6

81

33

471

2.0

1329.8Central America

1,534

1,472

1,701

38

9

0.0

△77.5

South America

20,337

9,024

14,193

14,211

880

3.8

△93.8

Africa

4,152

657

629

586

517

2.2

△11.8

0

29

4

0

3

0.0

-

44,46831,271

31,121

31,19723,458

100.0

△24.8

North America

Oceania
Total

Recoveries by Risk Type
Recoveries totaled approximately JPY 23.5 billion in FY2020, compared with JPY 31.2 billion in FY2019(a year-on-year decrease of 24.8%).
Looking at the results by risk type, recoveries related to political risk events, including those through Paris
Club debt rescheduling, amounted to JPY 20.9 billion (24.5% lower than the previous year). Recoveries
related to commercial risk events amounted to JPY 2.5 billion (26.9% lower than the previous year).

About NEXI and
Organizational Operation

Recoveries in FY2020

Insurance Products

Asia

EuropeNEXI Activities（Millions of Yen）

FY2017FY2016

Change (%)(%)

Recoveries by Region
RegionNEXI Review of Performance

Recoveries by Risk TypeFY2020 Financial Results

Recoveries by Region
The Middle East accounted for 72.0% of total recoveries at JPY 16.9 billion. This includes JPY 9 billion
from the Republic of Iraq (Paris Club recoveries) and JPY 1.1 billion from Jordan (Paris Club recoveries).
Asia accounted for 16.4% at JPY 3.8 billion. This includes JPY 2.2 billion from the Republic of Indonesia
and JPY 1.0 billion from the People’s Republic of China (commercial risk-related recoveries).
South America accounted for 3.8% at JPY 0.9 billion. This includes JPY 0.7 billion from the Argentine
Republic and JPY 0.1 billion from the Republic of Chile (commercial risk-related recoveries).
Recoveries from Europe amounted to JPY 0.8 billion, including JPY 0.7 billion from the Republic of Serbia
and JPY 0.1 billion from Bosnia and Herzegovina, while those from Africa amounted to JPY 0.5 billion,
including JPY 0.5 billion from the Arab Republic of Egypt.
Recoveries from North and Central Americas amounted to JPY 0.5 billion, mainly comprising commercial
risk-related recoveries of JPY 0.5 billion in the United States of America.

Annual Report FY

21

TOPICS

1

Organization for Economic Cooperation
and Development (OECD)

Working Party on Export Credits andCredit Guarantees(ECG Meeting and Participants Meeting)

The OECD was established in 1961 to discussvarious global economic issues, and Japan
has been a member since April 1964. The
Working Party on Export Credits and Credit
Guarantees (ECG), a subordinate organizationof the OECD Trade Committee, exchanges
information and discusses issues related tooﬃcial export credits, including Export
Credit Insurance and Buyer’s Credit Insurance
provided by NEXI. As a Japanese export credit
agency (ECA), NEXI actively participates in thediscussions in cooperation with concernedJapanese government agencies such as METI.
In addition to discussions on ﬁnancial terms
and conditions for oﬃcially supported export
credits, the ECG has also focused on the
responsibility of ECAs for social issues such as
the environment, climate change, anti-bribery,and sustainable lending.

3

Approaches to Environmental Issues

Since the formulation of the OECD Council
Recommendation on Common Approaches tothe Environment and Oﬃcially Supported
Export Credit in 2001, revisions have regularly
been made to improve the Common Approaches,
including the third revision made in June 2012.
Based on the OECD Common Approaches,
NEXI has established the Environmental
and Social Consideration Guidelines in Trade
Insurance to encourage t he a ppropri ate
envi ron ment a l a nd socia l considerations
for projects covered by its insurance.

22

Annual Report FY

2Arrangement on OﬃciallySupported Export Credits

The ﬁnancial terms and conditions for export
credits are set out in the OECD’s Arrangement
on O ﬃ cially Su p p o rte d Export C re dit s
to provide a framework for the orderly use ofexport credit and to foster a level playing ﬁeld.
The Arrangement prescribes common terms
and conditions, such as minimum premium
rates, down payments, maximum repayment
terms, minimum interest rates, and repayment
terms, when ECAs provide export credit. In
addition to the Arrangement, sector-speciﬁc
terms reﬂecting the characteristics of eachsector may be applied to projects related toships, nuclear power plants, civil aircraft,coal-ﬁred electricity generation, rail infrastructure,
renewable energy, climate change mitigation
and adaptation, and water as well as Project
Finance. NEXI provides export credits in linewith the Arrangement.

4

Anti-bribery Measures

Based on the Convention on Combating Briberyo f F o r e i g n P u b l i c O ﬃ c i a l s i n International
Business Transactions adopted in 1997 andthe OECD Council Recommendation on Bribery
and Oﬃcially Supported Export Credits in2006, which was created to combat bribery inoﬃcially supported export credits, NEXI hastaken appropriate measures against bribery ininternational business. In March 2019, theRecommendation was revised, and NEXI isstrengthening its eﬀorts based on the revisions.

NEXI Activities
Main Activities

24

Cooperation with Overseas Organizations

28

Projects Covered by NEXI Insurance30

SME Exports Covered by NEXI Insurance

35

TOPICS

39

Annual Report FY

23

NEXI Activities

Main Activities
Conclusion of MOU on Cooperation with EBRD
In October 2020, Nippon Export Investment
Insurance (NEXI) concluded a memorandum of
understanding (MOU) with the European Bank for
Reconstruction and Development (EBRD), a
multilateral development bank. The signing ceremony
was held online.
The EBRD promotes the transition towards
open-market economies across the Central and Eastern
Europe, Central Asia, and North Africa regions, as wellas provides ﬁnancial assistance to private andentrepreneurial initiatives through investments andloans.
This agreement aims to establish a framework forcooperation between NEXI and the EBRD and to help
Japanese companies expanding overseas by creating
new business opportunities for them in common
regions of operations, while eﬀectively combining the
EBRD's unique expertise as an MDB and NEXI’s
accumulated know-how of ﬁnancial assistance forJapanese entities.

NEX I h as b e e n str e n g th e n in g its su pport for
private-sector endeavors towards global
environmental protection and climate change, byoﬀering a new product called “Loan Insurance forGreen Innovation” launched in July 2019. While the
EBRD, through its Green Economy Transition
approach, has increased green ﬁnancing in its annual
business volume. By concluding this MOU, NEXI and
the EBRD are able to work in common eﬀorts aimed
at promoting infrastructure projects that willcontribute to environmental preservation.
Furthermore, it is in line with NEXI’s eﬀorts tostrengthen international cooperation with relatedorganizations under the worst economic crisis since
the Second World War, which is caused by a massive
outbreak of COVID-19 across the world. Working
directly with the EBRD, which provides ﬁnancial
support for developing countries suﬀering from severe
coronavirus outbreaks, will allow NEXI to expand its
scope of assistance for Japanese companies
operating in such countries.

Conclusion of MOU on Cooperation with IFC

In September 2020, Nippon Export Investment
Insurance (NEXI) concluded a memorandum of
understanding (MOU) with the International FinanceCorporation (IFC), a multilateral development bank
(MDB). The signing ceremony was held online.
The IFC, a member of the World Bank Group,
promotes sustainable private sector investment indeveloping countries. This agreement will enhancecooperation between the two parties in promoting
projects in which the IFC participates and insupporting Japanese companies’ overseas business.
NEXI will support such projects by providing
insurance for project-related Japanese bank loans.
Th is M O U aim s t o es t a b l i s h a f r a mew o r k fo r
cooperation between the two parties in order tocreate new business opportunities for Japanesecompanies in developing countries, while increasing
complementarities in the partnership with the IFC’s

unique expertise as an MDB and NEXI’s accumulated
know-how of ﬁnancial support for Japanese entities.
Massive infrastructure demand is now anticipated indeveloping countries that have achieved marked
economic growth. However, realizing infrastructure
projects in such countries has been considered “highrisk,” and it can be quite challenging to obtain
suﬃcient funding from private banks. It is also diﬃcult
to satisfy capital-raising needs by public funds. It is
said, therefore, that a funding gap of trillions of dollars
exists on a yearly basis. Amid such circumstances,signing an MOU with the IFC, which has played an
important role in private-sector development inemerging markets while mobilizing private capital, is
expected to contribute to fostering Japanesecompanies’ investment and ﬁnance into developing
countries.

Conclusion of Cooperation Agreement with MIGAIn November 2020, Nippon Export Investment
Insurance (NEXI) concluded a cooperationagreement with the Multilateral Investment
Guarantee Agency (MIGA), a multilateraldevelopment bank. The signing ceremony was held
online.
MIGA, a member of the World Bank Group,
promotes foreign direct investment (FDI) intodeveloping countries by providing guarantees toprotect investors and lenders against losses causedby political or non-commercial risks.
NEXI and MIGA already have an established trackrecord together including the conclusion of acooperative agreement in the ﬁeld of reinsurance,and joint assistance for investments and loans invarious projects under the mutual agreement. In
order to further enhance and leverage the mutual
partnership, NEXI and MIGA have determined to sign
a new cooperation agreement on comprehensive
business cooperation such as providing support for24

Annual Report FY

joint projects and holding regular consultations.
Also, this cooperation agreement aims to create
new business opportunities for Japanese companies
operating in developing countries by providing
co-insurance and reinsurance for investment andlending in such countries, while eﬀectively combining
MIGA’s unique expertise as an MDB and NEXI’s
accumulated know-how of ﬁnancial assistance forJapanese entities. Under the agreement, NEXI andMIGA are expected to closely work together in orderto promote eﬀective use of private sources for
emerging and developing countries where Japanesecompanies are seeking to expand their business, andfor oil producing countries suﬀering from the oil pricecrash.
Additionally, working closely with MIGA to provide
ﬁnancial support for developing countries hit hard by
the coronavirus will allow NEXI to expand its scope ofassistance for Japanese companies operating in suchareas including Latin America and Africa.

The Berne Union (The International Union of Credit
and Investment Insurers) is a forum for global export
insurance agencies, international organizations, andprivate insurers to share expert knowledge anddiscuss common challenges pertaining to export
credit insurance and investment insurance. The
inaugural meeting was held in 1934 in Berne,
Switzerland, which is the origin of the name Berne
Union, and as of the end of 2020 there are 84
member institutions in total.
The Berne Union meets twice per year in spring
and autumn to exchange ideas and hold discussions,and also holds sessions such as expert meetings andwebinars from time to time. In FY2020, meetings
were held in an online format in response to the
Covid-19 pandemic, with the Spring Meeting held in
April and the Annual General Meeting held in
October. NEXI attended both meetings where we
exchanged information with attending institutions.

NEXI Activities

Bilateral Meetings

About NEXI and
Organizational Operation

In FY2020, bilateral meetings were held in an online
format with export credit institutions and government
oﬃcials from China, Germany, and France. In addition
to responses to and the state of business under the
Covid-19 crisis, we exchanged unreserved opinions
on a wide range of topics, including addressing
climate change and risk management initiatives.
Such discussions which are held once per year allow
us to conﬁrm trade and investment insurance trends
around the world as well as to further strengthen
cooperation with institutions in other countries.

Insurance Products

In order to promote trade with and investment in
Africa by Japanese companies, Nippon Export andInvestment Insurance (NEXI) is working to cooperatewith ﬁnancial institutions which have a wealth ofexperience supporting local projects.
In 2020, we established consultation desks forJapanese companies at six institutions, namely theAfrican Trade Insurance Agency (ATI), African
Development Bank (AfDB), African Export-Import
Bank (Afrexim), Islamic Development Bank (IsDB),
Islamic Corporation for the Insurance of Investment
and Export Credit (ICIEC), and the Eastern andSouthern African Trade and Development Bank
(TDB). The staﬀ who have undergone a training
workshop for African ﬁnancial institutions put on by
NEXI in February 2020 provide consultation withJapanese companies considering trade, investment,or lending in Africa. Among these institutions, the ATI
has launched a Japanese language website to makeit easier for Japanese companies to consult them.
Support was also provided in 2020 for projects which
inquired through these consultation desks about
cooperating with NEXI.
While there is great potential for the involvement ofJapanese companies throughout Africa due to thevarious needs such as infrastructure, the risks are
relatively high compared to Asia. In light of thissituation, NEXI will continue working to create anenvironment that is conducive to export, investment,
and lending by Japanese companies.

Attendance at Berne Union
Meetings

NEXI Review of Performance

Establishment of Consultation
Desks for Japanese Companies
at African Financial Institutions

FY2020 Financial Results

Source: https://www.ati-aca.org/jp/
African Trade Insurance Agency（ATI）Website

Annual Report FY

25

NEXI Activities

Supporting Japanese SMEs in their Overseas Business Development
Enhanced Business Support System for SMEs
NEXI launched its network for supporting Japanese
small- and medium-sized enterprises(SMEs) in theiroverseas business development in 2011, with the aimof promoting the use of trade and investment
insurance. Since then, the network has expanded
across all of Japan’s 47 prefectures. Having started asa partnership with 11 regional banks, as of April
2021, the network comprised 110 members including
regional banks, shinkin banks, and the organizationsin the agriculture, forestry, and ﬁsheries (AFF) industries.
Through collaboration with these partner institutions,
we have supported Japanese SMEs and the entities
engaged in the AFF sector across the country as they
develop their overseas businesses.
In FY2020, we created six new introductory videos
for SMEs and other customers using trade andinvestment insurance for the ﬁrst time. We publishedthese videos, which provide overviews of our
products as well as other information such as how to
use them, on our website. In this way, customers
considering using trade and investment insurance
can easily access detailed trade and investment
insurance information at any time. We also carriedout a large number of meetings with potential
customers via video conferencing system, handlingtheir queries in detail. As a result, the number of SMEs
using the network in FY2020 exceeded 530
companies, a year-on-year increase of more than
10%.
Black font: Regional ﬁnancial
institutions, etc.
Blue font: Shinkin banks

The Juroku BankThe Gifu Shinkin BankThe Tono Shinkin Bank

Regional
Banks, etc.

FY201320 banks

49 institutions

FY2014

6 banks 22 shinkin banks 77 institutions

FY2015

12 banks 16 shinkin banks 105 institutions

FY2016 6 institutions

3 shinkin banks 114 institutions

FY2017 3 institutions

117 institutions

FY2018114 institutions

FY2019111 institutions

FY2020110 institutions

The Hachijuni Bank
Iida Shinkin Bank
Suwa Shinkin Bank
Nagano Shinkin Bank
The Hokuriku Bank
The Bank of Toyama
First Bank of Toyama

The Miyazaki BankThe Oita Bank

The Aomori Bank
The Bank of Iwate
The Tohoku Bank

Joyo Bank
Tsukuba Bank

The 77 Bank

The Musashino Bank
Saitama Resona BankThe Saitamaken
Shinkin Bank

Yamaguchi Bank
The Bank of Yokohama
The Yamanashi Chuo Bank
The Kofu Shinkin BankThe Iyo BankThe Ehime BankThe Shikoku Bank
The Kagawa Bank
The Hyakujushi BankSan ju SanBank
The Kiyo
Bank The Nanto
BankThe Senshu Ikeda Bank
Kansai Mirai BankThe Osaka City Shinkin Bank
The Kita Osaka Shinkin Bank

Support Network for Global Operations of Japanese SMEs
As of April 2021
Annual Report FY

The Hokkaido Bank
North Paciﬁc BankThe Obihiro Shinkin Bank
Wakkanai Shinkin
Asahikawa Shinkin BankThe Daichimirai Shinkin Bank

The Ashikaga BankThe Tochigi BankThe Tokushima Taisho Bank

26

The Akita Bank
Hokuto BankThe Toho Bank

The Bank of Saga

The Kagoshima Bank
Kagoshima Sougo Shinkin Bank

Total
29 institutions

The San-in Godo BankThe Juhachi-Shinwa Bank
The Higo Bank
The Kumamoto Bank

(Credit Unions)

18 banks

The Minato Bank
Amagasaki Shinkin Bank
Banshu Shinkin BankThe Chugoku Bank
Tomato Bank The Tottori Bank
Tamashima Shinkin Bank

The Bank of Fukuoka
Chikuho Bank
The Nishi-Nippon City Bank
Kitakyushu Bank

Shinkin Banks

FY2012The Towa Bank
Shinonome Shinkin BankThe Shiga Bank

The Hiroshima Bank
Momiji Bank
The Hiroshima Shinkin Bank

(currently 110 institutions)(decrease due to mergers, etc.)

Daishi Hokuetsu BankThe Fukui Bank
Fukui Shinkin Bank
The Bank of Kyoto
Kyoto Chuo Shinkin Bank

Number of New Partnerships by Fiscal Year

The Shonai BankThe Yamagata Bank

The Hokkoku Bank

Bank of The Ryukyus
The Bank of Okinawa

NEXI will continue to use partnership in the network
to actively support the overseas expansion of SMEs
and organizations in the AFF sector. We will also
work to strengthen our support by enhancing our
products and services.

The Shizuoka Bank
Enshu Shinkin BankThe Seishin Shinkin Bank
Hamamatsu Iwata Shinkin Bank
Shizuoka Yaizu Shinkin Bank
The Bank of Nagoya
The Chiba BankThe Okazaki Shinkin Bank
The Keiyo Bank
Seto Shinkin BankThe Chiba Kogyo Bank
Toyohashi Shinkin Bank
The Nishio Shinkin Bank
The Hekikai Shinkin Bank

Kiraboshi Bank, Shoko Chukin Bank, Resona Bank,
National Mutual Insurance Federation of Agricultural Cooperatives
National Mutual Insurance Federation of Fishery Cooperatives
The Norinchukin Bank
Asahi Shinkin Bank, The Johnan Shinkin Bank, Johoku Shinkin Bank,The Sugamo Shinkin Bank, Seibu Shinkin Bank, The Tama Shinkin Bank,The Tokyo Higashi Shinkin Bank

Working Toward a Sustainable Society

6.4 %FY2020 Screenings by Region

Oceania
Category B

6.4 %

2.0 %

Middle East

4.1 %Africa

Asia

8.5 %

Category C

38.3 %

Central & South America

87.2 %

21.3%

12.8 %※Categorized as A, B, or C in descending orderof the size of environmental impact of each project

Europe/NIS

FY2020 Financial Results

North America

About NEXI and
Organizational Operation

Category A

An on-site inspection conducted previously

Insurance Products

FY2020 Screenings by Category

en v i r o n m e n t a l g u i d e l i n e s e x a m i n e r w h o i s
independent from our insurance underwriting
department. We will continue to assess each project
as appropriate.

NEXI Activities

To fulﬁll its corporate social responsibility regarding
environmental and social issues, NEXI conducts
investigations to assess whether companies
implementing projects covered by NEXI’s insurance
have adequately addressed environmental and social
considerations. We conduct these investigations inaccordance with our “Guidelines on Environmental
and Social Considerations in Trade Insurance” and“Guidelines for Information Disclosure Considerations
for Nuclear Sector Projects in Trade Insurance.”
In FY2020, NEXI conducted screenings for 47 projects.
In the screenings, projects were classiﬁed into three
categories (A, B, or C, categorized in descending orderof the size of their environmental impact), based on
information provided in screening forms submitted byapplicants for NEXI’s insurance. NEXI then conductedeach assessment appropriately for its category. Even
during the pandemic in ﬁscal 2020, we conducted
detailed assessments for Category A projects, using
virtual inspections and other means instead of theon-site inspections that are ordinarily required.
Also, to ensure compliance with the guidelines, NEXI
has introduced objection procedures, assigning an

NEXI Review of Performance

Guidelines on Environmental and Social Considerations

12.8 %※The Middle East includes Turkey; Central & South America
includes Mexico.

Annual Report FY

27

NEXI Activities

Cooperation with Overseas Organizations
NEXI has established a cooperative network withrelated institutions around the world. This enables us toquickly and accurately respond to the diverse needs ofJapanese companies as they develop their businesses
internationally.

(1) One-Stop-Shop Reinsurance

For cases in which a Japanese company ispartnering with foreign companies on a projectin a third country, NEXI concludes one-stop-shop
reinsurance agreements with major overseas export
credit agencies (ECAs). The purpose of these agreements
is to underwrite risks for the portion exported fromJapan. For example, when a Japanese company
forms a consortium with foreign companies for export
to a third country, the foreign companies can conclude
insurance contracts with their own countries’ ECAs
for the total amount of the export contract including
the portion exported by the Japanese company. NEXI
then provides reinsurance to the foreign ECAs for the
portion exported by the Japanese company.

Providesreinsurance
for theportion ofexport by aJapanesecompany

Exportcontract

Foreign
Foreign
ECA Provides export Company

credit insurance
for the entire
export contract

One-Stop-Shop Reinsurance Agreements

Italy
Servizi Assicurativi del Commercio Estero (SACE) 2002
Netherlands Atradius N.V. (ATRADIUS)
2002
Belgium
Credendo - Export Credit Agency
2002
Germany
Euler Hermes Deutschland AG (EULER-HERMES) 2003
Austria
Oesterreichische Kontrollbank AG (OeKB)
2003
FinlandFinnvera plc (FINNVERA)
2004
Compañía Española de Seguros de Crédito a la Exportación (CESCE) 2005
Spain
Switzerland
Swiss Export Risk Insurance (SERV)
2007
FranceBanque Publique d’Investissement (Bpifrance) 2016
Czech Republic Export Guarantee and Insurance Corporation (EGAP) 2017
UK
UK Export Finance (UKEF)
2017
Denmark
Eksport Kredit Fonden (EKF)
2019

Short-term Reinsurance Agreements

RussiaRussian Agency for Export Credit and Investment Insurance (EXIAR) 2016

FranceDirection des Relations Économiques Extérieures (DREE) 1995
Banque Publique d’Investissement (Bpifrance) 2016

UK

UK Export Finance (UKEF)

Cooperative Agreements

1995

ExportJapanese
Company

Consortium
agreement

EuropeExportThirdCountry
Buyer(2) Short-term Reinsurance
NEXI has concluded reinsurance agreements with ECAs
in Asia and other regions to support exports to third
countries by Japanese companies located in Asian andother countries. These agreements increase theunderwriting capacity of ECAs in Asia and other regions.
This makes it easier for Japanese companies in theseregions to mitigate their international trade risks by using
export credit insurance oﬀered by local ECAs.
Reinsurance
contract

JapaneseaﬃliatedCompany

Cooperative Agreement

Foreign
ECA

South Africa

Export credit insurance
Export, etc.

Buyer(3) Reinsurance with Europeanand US Private-sector Insurers

In response to the economic crisis in Europe andother issues, NEXI has started to provide underwriting
capacity through short-term reinsurance agreementswith European and US private insurers.

(4) Other Cooperative Relations

NEXI has built long-term relationships throughcooperative agreements with major ECAs that belong
to the Berne Union and international organizations.

28

Annual Report FY

AfricaExport Credit Insurance Corporation of South Africa (ECIC SA) 2005

Middle East
Cooperative Agreements

IsraelAbu Dhabi
Iraq

Israel Export Insurance Corp. Ltd. (ASHRA) 1997
Mubadala Development Company PJSC (MDC) 2008
Ministry of Finance of Iraq
2011
Trade Bank of Iraq (TBI)
2011
Iran
Ministry of Economic Aﬀairs and Financeof the Islamic Republic of Iran2016
TurkeyExport Credit Bank of Turkey (Turk Eximbank) 2017
Saudi Arabia Ministry of Finance of Saudi Arabia
2020

North America
Germany

One-Stop-Shop Reinsurance Agreements

CanadaUS

Export Development Canada (EDC)2018
Export-Import Bank of the United States (US EXIMBANK) 2019

NEXI Review of Performance

Short-term Reinsurance Agreements
CanadaExport Development Canada (EDC)2012

Cooperative Agreements
US
CanadaUS

Export-Import Bank of the United States (US EXIMBANK) 1991
Export Development Canada (EDC)1997
The United States Department of Energy (DOE) 2009
U.S. International Development Finance Corporation (DFC) 2017

South America
Cooperative Agreements

BrazilNEXI Activities

Euler Hermes Deutschland AG (EULER-HERMES)
Coopers & Lybrand, Germany (C&L)
1996
KfW Bankengruppe (KfW)
2011
Austria
Oesterreichische Kontrollbank AG (OeKB)
1996
Italy
Servizi Assicurativi del Commercio Estero (SACE) 1996
FinlandFinnvera plc (FINNVERA)
1996
Netherlands Atradius N.V. (ATRADIUS)
1996
Compañía Española de Seguros de Crédito a la Exportación (CESCE) 2000
Spain
Uzbekinvest National Export-Import Insurance Company (UZBEKINVEST) 2007
Uzbekistan
The State Export-Import Bank of Ukraine (UKREXIMBANK) 2009
UkraineRussiaState Development Corporation (VEB.RF)
2009
BelarusBelarusbank
2009
Russian Agency for Export Credit and Investment Insurance (EXIAR) 2013
RussiaTurkmenistan The State Bank for Foreign Economic Aﬀairs of Turkmenistan (TFEB) 2015
Czech Republic Export Guarantee and Insurance Corporation (EGAP)2015
Kazakhstan
KazakhExport
2016
Ministry of Economy and Sustainable Development of Georgia 2019
Georgia
Joint Stock Company Siberian Coal Energy Company（SUEK JSC）2019
RussiaBelgium
Credendo - Export Credit Agency
2019
Hungary
Hungarian Export Credit Insurance Plc. (MEHIB) 2019
Azerbaijan
The Republic of Azerbaijan Ministry of Economy 2021

Companhia Vale do Rio Doce (Vale)
Petróleo Brasileiro S.A. (PETROBRAS)

2008
2008
Banco Nacional de Desenvolvimento Economico e Social (BNDES) 2009
Brazilian Guarantees and Fund Managements Agency (ABGF) 2017

NEXIの活動

海外の関連
Insurance Products

国際化・ボーダレス化する日本企業

ニーズに迅速かつ的確に対応するため係機関との間で以下のような協力関係を① One-Stop-Shop再保険

日本企業が外国企業と共同で第三国におOne-Stop-Shop Reinsurance Agreements
Short-term Reinsurance Agreements
Cooperative Agreements

参加する場合に、NEXIが日本からの輸出部受けることを目的として、海外の主要な輸出間でOne-Stop-Shop再保険協定を締結してい企業が外国企業とコンソーシアム（企業連合
About NEXI and
Organizational Operation＊ For countries on the map that are partners both to one-stop-shop
reinsurance agreements and cooperative agreements, the color codefor one-stop-shop reinsurance agreements is used. For countries thatare partners both to short-term reinsurance agreements and cooperative
agreements, the color code for short-term reinsurance agreements is
used.

輸出を行う場合、外国企業が日本企業輸出部

金額全体について自国のECAと保険契約を締

企業輸出部分につ いては、そ の 外国ECAか引受を行います。

Asia/Oceania
One-Stop-Shop Reinsurance Agreements

Australia
Korea
ThailandExport Finance Australia (EFA)2005
Korea Trade Insurance Corporation (K-SURE) 2011
Export-Import Bank of Thailand (EXIM Thailand) 2019

Short-term Reinsurance Agreements
ECICS Limited (ECICS)
2004
Export-Import Bank of Malaysia Berhad (MEXIM)2006
PT. Asuransi Asei Indonesia (Asuransi Asei) 2009
Export-Import Bank of Thailand (EXIM Thailand)2009
Taiwan's Export-Import Bank of the Republic of China (Taiwan EXIM) 2010
Hong Kong Export Credit Insurance Corporation (HKECIC) 2012

Reinsurance Agreements with European and US
Private-sector Insurers
Euler Hermes Deutschland AG (EULER-HERMES) (private sector) 2013
COFACE(private sector)
2014
American International Group, Inc. (AIG)2015
Tokio Marine HCC
（HCC）
2016
Mitsui Sumitomo Insurance Company (Europe) Limited / MS Amlin 2019
Credendo - Ingosstrakh Credit Insurance, LLC
2019Indonesia
China
India
Australia
Thailand

Korea Export Insurance Corporation (K-SURE)1994
日本のECICS Limited (ECICS)
1997
企業
Taiwan's Export-Import Bank of the Republic of China (Taiwan EXIM)2005
PT. Asuransi Asei Indonesia (Asuransi Asei） 2008
Vietnam Oil and Gas Group (Petrovietnam) 2010
日本企業輸出分
コンソーシアMinistry of Finance of Vietnam
2014
についての
契約
PT Pertamina (Persero) (Pertamina)
2015
再保険の引受China Export & Credit Insurance Corporation (SINOSURE) 2018
輸出
ECGC Ltd. (ECGC)
2018
Department of Foreign Aﬀairs 外国のand Trade (DFAT) / Export

外国の輸出契約全体2018 企業
Finance Australia (EFA) ECAについての
Export-Import Bank of Thailand (EXIM
Thailand) 2020
貿易保険の引受International Organizations
Cooperative Agreements② 短期型再保険

FY2020 Financial Results

Singapore
Malaysia
Indonesia
ThailandTaiwanHong Kong

Cooperative Agreements

Korea
Singapore
TaiwanIndonesia
Vietnam

輸

アジア地域等の日系企業による第三国向Export credit agencies and export ﬁnancing institutionsof APEC
members (15 organizations in 12 countries)
1997

European Investment Bank (EIB)

して、NEXIはアジア等のECAと再保険協定
2018

この協定により、アジア等のECAの保険引受
The Islamic Corporation for the Insurance of Investment
and Export Credit (ICIEC)
2019

Islamic Development Bank (IsDB)
2019
アジア等の日系企業がアジア等のECAの貿
African Trade Insurance Agency (ATI)
2019
対外取引リスクの軽減が容易になりました。
European Bank for Reconstruction and Development(EBRD) 2020
Multilateral Investment Guarantee Agency (MIGA)
2020
再保険契約にInternational Finance Corporation (IFC)
2020
基づく引受

Annual Report FY

海外の

29ECA

NE XI Act iv iti e s

Projects Covered by NEXI Insurance

Republic of Palau / Optical Submarine Cable Export ProjectIn this project, NEC Corporation (NEC) will supply
and install optical submarine cables for Belau
Submarine Cable Corp (BSCC), a telecom company of
the Republic of Palau (Palau). Of the USD 8 million
co-ﬁnancing provided to BSCC by Sumitomo Mitsui
Banking Corporation (SMBC) and Japan Bank forInternational Cooperation (JBIC), NEXI has provided
loan insurance for a ﬁnancing by SMBC (USD 4
million).
The installed cables are due to be connected to the
US‒South East Asia submarine cable and areexpe c t e d t o c o nt r i b ut e t o b ui l d i ng a b e tte r
telecommunications environment in Palau. This
project also meets the intent of the LEAD initiative
announced at the end of 2020, as a joint project inthird countries by Australia, Japan, and the US.
Financial assistance for the project is provided by not
only Japan’s ECA and ﬁnancial institutions, but also
the US government, the United States Agency forInternational Development (USAID), the AustralianGovernment, and the Australian Infrastructure
Financing Facility for the Paciﬁc (AIFFP).

Through the LEAD initiative, NEXI will continue tosupport projects contributing to address diplomaticand trade challenges such as “Free and Open Indo-Paciﬁc”
strategy and to strengthen economic partnerships.

●Date of signing the insurance contract: March 2021

Photo provided by NEC Corporation

Africa / Financing for the African Export-Import BankNEXI has provided Overseas United Loan Insurance
for a loan of USD 520 million, which was extended by
MUFG Bank, Ltd. and Mitsubishi UFJ Trust andBanking Corporation to the African Export-Import Bank
(Afreximbank) with 51 African member countries.
Through the Pandemic Trade Impact Mitigation
Facility (PATIMFA) program, a new facility which
Afreximbank has launched to help African countries
deal with the impacts of the Covid-19 pandemic, thisloan will be subleased to government agencies of key
countries for Japanese companies’ business developmentin Africa and utilized in various ﬁelds including
medicine, sanitation, environment, education, andimport-export.
The TICAD7, which was held in Yokohama in 2019,
called for enhancement of support for Africa byleveraging private ﬁnancing, with the aim of strengthening
support for Japanese companies’ expansion in Africa
and of establishing a sustainable society in Africancountries by such measures as improving hygiene
conditions. In response, NEXI’s Infrastructure Fund
Scheme announced in December 2019 was applied
to this loan, and nearly 20 Japanese institutional
investors have entered in the African market,
encouraged by the risk mitigation eﬀect of NEXI’s
coverage.

30

Annual Report FY

One of the aims of the Japanese government’s“Infrastructure Systems Export Strategy 2025” is tocontribute to solving social issues and achieving theSDGs in countries where Japanese infrastructuredevelopment business is conducted. In the midst of
the Covid-19 pandemic, the importance of utilizing
private funding in this sector has been increasing. Thisloan is the ﬁrst project to meet the intention of the
LEAD initiative, in terms of contributing to thedevelopment in the infrastructure sector and showing
Japan’s presence through economic cooperation in
the private sector.
●Date of signing the insurance contract: December 2020

Photo provided by African Export-Import Bank
Photo credit: MUFG Bank, Ltd.

NEXI Review of Performance

Georgia / Dariali Hydropower Plant Management Project
Sustainable Development of Georgia in March 2019
for the purpose of promoting bilateral trade andassisting companies from both countries in expanding
their business into the other country. As Japan’s
policy-based ﬁnancial institution, NEXI will continue
to support Japanese utility companies in their businessdevelopment overseas.
●Date of signing the insurance contract: November 2020

Insurance Products

Photo provided by JSC Dariali Energy

Petrobras has plans to continuously develop
deep-water oil and gas ﬁelds located oﬀ the coast of
Brazil. Also, demand for FPSOs for oﬀshore oil and gas
ﬁelds is expected to increase in other countries.
Therefore, supporting this project will assist Japanesecompanies to acquire further knowledge on FPSO
projects, as well as to increase their presence andbusiness opportunities in the FPSO industry.

About NEXI and
Organizational Operation

Federative Republic of Brazil / FPSO Project for Buzios and Marlim Oil Fields●Date of signing the insurance contracts: July 2020, October 2020

Photo of FPSO in operation oﬀ the Brazilian coast, provided
by MODEC, Inc.
31
Annual Report FY

FY2020 Financial Results

MODEC, Inc., Mitsui & Co., Mitsui O.S.K. Lines, Ltd.
and Marubeni Corporation have agreed to participate
in a long-term charter business of two ﬂoatingproduction storage and oﬄoading (FPSO) units, byinvesting in Petro leo Brasileiro S.A. (Petrobras), theBrazilian state-owned oil company, through Buzios5
MV32 B.V. (MV32) and Marlim1 MV33 B.V. (MV33),
two Dutch companies which hold FPSOs. In thisproject, MODEC will build FPSOs for Buzios oil andgas ﬁeld located in the pre-salt region, about 180km
oﬀ the coast of Rio de Janeiro, and Marlim oil and gas
ﬁeld, about 150km oﬀ the coast of Rio de Janeiro,
while MV32 and MV33 will provide charter service of
these FPSOs to Petrobras for a long term.
Of the USD 1,350 million project ﬁnancing procured
by MV32, NEXI has provided loan insurance for a partof the ﬁnancing which is USD 540 million extended by
Japanese ﬁnancial institutions. Also, of the USD 969.5
million project ﬁnancing procured by MV33, NEXI has
oﬀered loan insurance for a part of the ﬁnancing
which is USD 387.8 million extended by Japaneseﬁnancial institutions. Japan Bank for International
Cooperation (JBIC) has also provided funding for the
project.
This project is expected to strengthen relationships
between Japanese companies and Petrobras, as

NEXI Activities

In April 2020, TEPCO Renewable Power, Incorporated(TEPCO RP) acquired 31.4% of the shares in JSC Dariali
Energy (Dariali Energy), a Georgian hydropowercompany, from Peri LLC in Georgia, for the purpose ofparticipating in the management of the Dariali Hydropower
Plant (Dariali HPP), which has already started its
operations in the Kazbegi municipality, Mtskheta-Mtianeti
province. NEXI has provided Overseas Investment
Insurance for the TEPCO RP’s investment in thisproject.
Dariali HPP is a major renewable energy power
facility that generates 4% of annual domestic electricity
needs. In Georgia, where hydropower accounts for
80% of total power generation, the operational eﬃciency
of hydropower plants needs to be improved. The
operation and maintenance technology, to be provided
by TEPCO RP through the project, will contribute to
an increase in operational capability of the Dariali
HPP. The hydropower plant is operated by Dariali
Energy under a power sales contract with the Electricity
System Commercial Operator (ESCO), the market
operator in Georgia’s electricity sector.
This is the ﬁrst project implemented under the
memorandum of understanding (MOU) signed
between NEXI and the Ministry of Economy andNE XI Act iv i ti e s

Projects Covered by NEXI InsuranceSocialist Republic of Viet Nam / Earth Observation Satellite Export Projectto Vietnam National Space Center
NEXI has provided Export Credit Insurance for
Sumitomo Corporation to cover risks associated with
its export of an earth observation satellite, which has
been ordered by Vietnam National Space Center(VNSC) in the Socialist Republic of Viet Nam(Vietnam).
This project is to manufacture an earth observation
satellite and launch it from a launch site in Japan,
while developing a ground system in Vietnam andimplementing technology transfer from Japan toVietnam through personnel development and othermeasures. This is the ﬁrst time that an international
yen loan has been provided for an earth observation
satellite.
In Vietnam, as in Japan, the risk of frequent andlarge-scale natural disasters, such as heavy rains,
typhoons, and ﬂoods, has been increasing, andintroducing a new monitoring system for damage
caused by the disasters is a pressing issue. With thesatellite, the Vietnamese government intends toenhance its monitoring capabilities and ability toforecast natural disasters in order to reduce damage.
This project is in accordance with expansion ofJapanese aerospace business which the Japanese

government stipulates in the Infrastructure System
Export Strategy. The supply of the earth observation
satellite equipment/system and assistance in personnel
development can be expected to assist Vietnam toincrease its ability to monitor and predict damage
from natural disasters.
●Date of signing the insurance contract: May 2020

Conceptional drawing of the satellite, provided by
NEC Corporation

People’s Republic of Bangladesh / Meghnaghat 718MW Gas-ﬁred
Combined-cycle Power Plant Project
Reliance Bangladesh LNG & Power Limited, which issponsored JERA Co., Inc.(JERA) has participated in a
project that intends to build, own, and operate a natural
gas-ﬁred combined-cycle power plant at Meghnaghat in
the People’s Republic of Bangladesh (Bangladesh). The
electricity generated from the project will be sold to the
Bangladesh Power Development Board for 22 years
after commercial operation starts.
NEXI has oﬀered Overseas Investment Insurance for theinvestment share of JERA. Additionally, of the USD 642
million co-ﬁnanced through project ﬁnance, NEXI has
provided loan insurance for the ﬁnancing of USD 177
million jointly provided by Mizuho Bank, Ltd., Sumitomo
Mitsui Banking Corporation, MUFG Bank, Ltd., andSociete Generale Tokyo branch. Japan Bank forInternational Cooperation (JBIC) has also provided forthe project. This is the ﬁrst time for NEXI to oﬀer its
investment and loan insurance for project ﬁnance in
Bangladesh.
In Bangladesh, a shortage of power supply has become
an issue as the domestic economy grows. The government
therefore plans to expand the country’s power
generation capacity to meet the increasing demand.
This project is in accordance with such government
policy and is expected to contribute to the country’s

32

Annual Report FY

industrial development and further economic growth.
JERA will also take the lead in operation andmaintenance (O&M) of the plant. Such comprehensive
eﬀorts by JERA, ranging from the project company
management to the power plant operation, are in linewith the Infrastructure System Export Strategy led by theJapanese government. The project is expected tocreate new business opportunities for Japanese companies
to expand business in Asia.

●Date of signing the investment insurance contract: June 2020
Date of signing the loan insurance contract: August 2020

Conceptional drawing of the power plant, provided by JERA Co., Inc.

NEXI Review of Performance

Kingdom of Sweden / Northvolt’s LIB Plant Construction Project
memorandum of understanding (MOU) between EIB
an d N E X I w a s s i g n e d i n O c t o b e r 2 0 1 8 , a n d i s
expected to strengthen NEXI’s cooperative relationshipwith Europe in the economic development.

NEXI Activities●Date of signing the insurance contract: October 2020

Insurance Products

Northvolt AB（Northvolt）, which was founded in theKingdom of Sweden in 2016, will build a lithium-ion
battery (LIB) gigafactory and sell the LIBs produced toautomobile/truck/machine tool manufacturers in
Europe. Japanese companies are planning to deliver
manufacturing equipment to the project.
Northvolt will fund the project through projectﬁnancing extended by the European Investment Bank
(EIB) and ECAs in Europe and Asia. Of the projectﬁnancing, NEXI has provided insurance for the funds
to purchase goods exported from Japanesecompanies, which amounts to USD 150 million jointly
ﬁnanced by Sumitomo Mitsui Banking Corporation,
BNP Paribas Bank, Societe Generale, and ING Bank.
This is the ﬁrst time for NEXI to oﬀer insurance for a
project ﬁnance associated with an LIB gigafactory. Asan essential material in the production of electricvehicles, LIB will become increasingly important in the
carbon-neutral era. As Japan’s policy-based ﬁnancial
institution, NEXI will continue to actively support
exports by Japanese companies including SMEs, while
contributing to the realization of carbon neutrality.
Additionally, this is the ﬁrst joint project since the

Photo provided by Northvolt AB

emission, which is a cause of global warming, comparedwith that of oil and coal, and the global demand islikely to continue to grow. This project is expected tocontribute to a stable supply of LNG by taking advantage
of geographical proximity to the regions where LNG isneeded.

●Date of signing the insurance contract: August 2020

FY2020 Financial Results

This project is an integrated business to cover the
upstream and midstream stages, ranging from thedevelopment of a large oﬀshore natural gas ﬁeld
located oﬀ the coast of northern part of the Republicof Mozambique, to the production and liquefaction ofnatural gas and the transportation of liqueﬁed naturalgas (LNG). Mitsui & Co., Ltd. (Mitsui) and Japan Oil,Gas and Metals National Corporation (JOGMEC) has
invested in the project to hold upstream rights for thenatural gas ﬁeld, a part of the LNG produced from the
project will be sold to Japanese electricity and gas
companies.
Of the project ﬁnancing, NEXI has provided insurance
for the USD 2 billion ﬁnancing extended by Japaneseﬁnancial institutions. This is an international project
co-ﬁnanced by multiple ECAs and regional developmentbanks, as well as the largest project ﬁnancing projectto date in Africa. Japan Bank for International Cooperation(JBIC) has also provided funding for the project.
Additionally, this is the ﬁrst project to which
expanded scope of the coverage of Investment and
Loan Insurance for Natural Resources and Energy has
applied, since NEXI revised the policy in October
2018. LNG is the most environmentally friendly energy
resource of fossil fuels due to its less carbon dioxide

About NEXI and
Organizational Operation

Republic of Mozambique / Mozambique LNG Project

Architectural rendering provided by Mitsui & Co., Ltd.
Annual Report FY

33

NE XI Act iv i ties

Projects Covered by NEXI Insurance
Emirate of Dubai, the United Arab Emirates / Waste-to-Energy Project
ITOCHU Corporation (ITOCHU) and Hitachi Zosen
Corporation (Hitachi Zosen) will build a waste-to-energy
plant, with a processing capacity of 1.9 million tons ofmunicipal waste annually, in the Emirate of Dubai, theUnited Arab Emirates (UAE). They will also be involved inplant operation/management as well as power generation
under a 35-year concession period after commercial
operation starts. ITOCHU is playing a leading role
through measures such as sending personnel to theproject company, taking advantage of rich experiencein the waste-to-energy power generation business,while Hitachi Zosen is playing a key role in the plant
construction, operation, and maintenance work.
Of the USD 900 million co-ﬁnancing raised by the
project company through project ﬁnance, NEXI has
provided loan insurance for the loan facility of USD 380
million extended by Japanese ﬁnancial institutions.
Japan Bank for International Cooperation (JBIC) has
also provided funding for this project.
Under the Dubai Clean Energy Strategy 2050, thisproject is in accordance with the policy objectives set
by the Government of Dubai, including minimizing thevolume of municipal waste in landﬁlls, conducting
sustainable and ecologically friendly waste management,
and promoting the development of alternative energy

sources. This project is also considered as one of thelong-term initiatives aiming at carbon neutrality anddecarbonization, while contributing to achieving the
UN Sustainable Development Goals (SDGs), because
the waste-to-energy power generation is a clean
energy that does not consume fossil fuels.
This project is expected to further promote Japanesecompanies’ business expansion and deployment of
their decarbonizing technology in the Middle East, as
well as the virtuous cycle of environmental improvement
and economic growth in the region.

●Date of signing the insurance contract: March 2021

Conceptional drawing provided by ITOCHU
Corporation and Hitachi Zosen Corporation

Overseas Investment Insurance for FinTech Services Company (Underwriting of Reinsurance)
NEXI has provided Overseas Investment Insurance to
Global Mobility Service, Inc. (GMS), a global start-up
oﬀering ﬁnancially inclusive FinTech services, for oneof its initiatives to achieve “No Poverty,” via Tokio
Marine & Nichido Fire Insurance Co., Ltd.
With its vision “Build a Fairer World that Values
Workers Equally,” GMS has developed a platform bycollaborating with ﬁnancial institutions. In theplatform, ﬁnancial institutions will provide automobileloans to people who have failed to pass credit
checks, based on visualized data of their work skills
provided by GMS’s FinTech services which will create
credits for them. This business is underway in thePhilippines, Cambodia, and Indonesia, leading to theachievement of the Sustainable Development Goals(SDGs). GMS’s technologies and services bring many
possibilities to a society of mobility and make contribution
to the global market through Japan’s integrated
advanced technologies.
NEXI’s Overseas Investment Insurance provides acoverage for country risks associated with businessexpansion by global startups that contribute toachieving the SDGs. This project is symbolic, as sales
network of private casual insurers has eﬀectively
contributed to the underwriting of a new insurance

34

Annual Report FY

policy. As Japan’s policy-based ﬁnancial institution,
NEXI will continue to support more Japanese businesses,
using its reinsurance network through public-private
partnerships.
●Date of signing the insurance contract: December 2020

Photo provided by Global Mobility Service, Inc.

NE XI Act iv i ti e s

SME Exports Covered by NEXI Insurance
NEXI Review of Performance

Cooking Utensil Exports* Daishi Hokuetsu Bank: business tie-up with NEXI
since July 2012.
Formerly the Daishi Bank, Ltd. at the time of signing
the insurance contract.
●Export value covered by the insurance: About JPY 4.6 million●Date of signing the insurance contract: July 2020

NEXI Activities
Insurance Products

WAHEI FREIZ CORPORATION (WAHEI FREIZ), a
manufacturer of cooking utensils located in Tsubame
City, Niigata Prefecture, used Export Credit Insurance
for SMEs and AFF Sector to seek protection against
non-payments for its exports of cooking utensils to
Taiwan, following a change in settlement methodfrom advanced to deferred payment.
Since its foundation in 1951, WAHEI FREIZ has
dedicated itself to developing products taking in
feedback from end users. To ensure that its products
satisfy customers, the company designed its own setof standards, focusing on user-friendliness through its
attention to details such as the material of handle
screws or heat resistance of the knobs. Daishi
Hokuetsu Bank, Ltd.* introduced trade and investment
insurance to WAHEI FREIZ, allowing the company tohedge the risks while meeting the post-payment
requirements of its business partners.
WAHEI FREIZ plans to expand exports of its reﬁned
products which represent the traditional craftsmanshipof Tsubame Sanjo region in Japan, while making fulluse of trade and investment insurance.

Photo provided by WAHEI FREIZ CORPORATION

FY2020 Financial Results

Nikko Corporation (Nikko), a trading company inShizuoka City, Shizuoka Prefecture, used Export
Credit Insurance for its exports of locally produced
eggs to Hong Kong while reducing the risks of import
restrictions or bans in the market.
In recent years, Hong Kong has seen a rapid increasein the demand for Japanese eggs which are safe to beeaten raw. Targeting such needs, Nikko has been
exporting eggs to Hong Kong which it purchased fromproducers in Shizuoka Prefecture. Through its exportof safe and high-quality eggs, Nikko has been serving
as an intermediary between local producers in theprefecture who wish to expand their sales channel inHong Kong and the consumers there who areadapting a new food culture of eating raw eggs andare looking for ﬁne Japanese eggs.
Utilizing trade and investment insurance, Nikko aims
to increase its sales in the markets abroad through its
trading products including not only eggs but also
Japanese food products such as miso and soy sauce,
as well as daily necessities.

About NEXI and
Organizational Operation

Chicken Egg Exports

Photo provided by Nikko Corporation●Export value covered by the insurance: About JPY 2.7 million●Date of signing the insurance contract: January 2021
Annual Report FY

35

NE XI Act iv iti e s

SME Exports Covered by NEXI Insurance
Textile Exports
Kawagoshi Masa Co., Ltd. (KGM) in Tokyo signed up
for Export Credit Insurance for SMEs and AFF Sector
to reduce non-payment risks associated with thesupposed increase in deferred payment for its textile
exports to the U.K.
Established in 1957, KGM is a comprehensive
manufacturer of textiles and textile products. The
company’s strength lies in its eﬃcient supply system,
which covers the entire process from planning andproposal, textile development and sewing production,
to delivery. Employing its network of few hundredbusiness partners both in and out of Japan, thecompany pursues to produce customers’ ideal
fabrics, and together with new ideas and its extensive
experience in textile production, caters to their needs
for creating original fabrics.
KGM plans to further develop its international
business leveraging its global network with fouroﬃces located overseas, while hedging the risks ofuncollectible payments using trade and investment
insurance.
●Export value covered by the insurance: About JPY 2 million●Date of signing the insurance contract: February 2021

Photo provided by Kawagoshi Masa Co., Ltd.

Sake Exports
Kikusui Sake Co., Ltd. (Kikusui), a sake brewery located in
Shibata City, Niigata Prefecture, used Export Credit Insurance
for SMEs and AFF Sector for the export of Japanese saketo the Republic of Korea.
Kikusui, celebrating the 140th year since foundation in
2021, aims to enrich people’s lives with the outstanding
quality and ﬂavor of its products. One of its ﬂagship brands,
Funaguchi Original Gold, launched in 1972 as Japan's ﬁrst
unpasteurized and undiluted sake in aluminum cans, hasbeen sold for more than 300 million bottles to date, andremains to be much-loved to this day. Since it was the ﬁrst
time for Kikusui to trade directly with a foreign company
under deferred payment, the brewery decided to use tradeand investment insurance introduced through Japan
External Trade Organization (JETRO) to reduce the risks
against non-payment.
From its birthplace of Shibata, Kita-Echigo in northern
Japan, Kikusui plans to expand sales of its ﬁnest sake tocustomers all over the world, making use of the trade andinvestment insurance.
●Export value covered by the insurance: About JPY 2.3 million●Date of signing the insurance contract: March 2021

36

Annual Report FY

Photo provided by Kikusui Sake Co., Ltd.

NEXI Review of Performance

Ice Cream Exports●Export value covered by the insurance:
About JPY 55 million●Date of signing the insurance contract:
August 2020

NEXI Activities

Photo provided by Imuraya Group Co., Ltd.

● Export value covered by the insurance : About JPY 2 million● Insurance contract signing date : November 2020

About NEXI and
Organizational Operation

Yuzu Exports

FY2020 Financial Results

Motoi, Inc. (Motoi), a trading company based inTokushima City, Tokushima Prefecture, exported yuzu
(a type of citrus fruit) to the French Republic (France)
through Export Credit Insurance for SMEs and AFF
Sector.
The trading company exports high-quality foodproduce from Tokushima and Shikoku to markets
around the world.
When Motoi received an inquiry from a buyer inFrance about the Kigashira Yuzu with a vivid color andrich aroma, the company was concerned about therisk of non-payment due to a term of deferred paymentoﬀered by the buyer. Motoi was referred to NEXI by
the export promotion department of the Tokushima
prefectural government and took out trade andinvestment insurance that allowed the company tohedge the risk before carrying out the export.
Motoi will continue to enter overseas markets using
trade and investment insurance, with the aim ofbroadening the appeal of food products in Tokushima
and Shikoku.

Insurance Products

Imuraya Group Co., Ltd. (Imuraya Group) in Tsu City,
Mie Prefecture, used Comprehensive Export Insurancewith Simpliﬁed Procedure for ice cream exports toHong Kong and other regions to reduce non-payment
risks associated with the trading under deferredpayment terms.
Imuraya Group started business in 1896 as aconfectionery store Imuraya, and since then has been
manufacturing and selling a wide range of foodproducts, including confectioneries using azuki beansand paste. The ice cream products that Imuraya
Group develops and exports are highly popular inJapan, including its long-selling Azuki Bar, which waslaunched in 1973, and Yawamochi Ice Cream, which
won the Good Design Award in 2013.
Imuraya Group has been exploring its sales channel
through its overseas oﬃces. In the process, concerns
arose about country risks and credit risks regarding
its global business partners, for which comprehensive
risk coverage is being provided through trade andinvestment insurance. Imuraya Group plans to further
expand its international business while employing
trade and investment insurance.

Photo provided by Motoi, Inc.

Annual Report FY

37

NE XI Act iv i ties

SME Exports Covered by NEXI Insurance
Exports of Eyeglass Frames
CHARMANT Group (CHARMANT), an eyeglass frame
manufacturer based in Sabae City, Fukui Prefecture,
took out Export Credit Insurance for SMEs and AFF
Sector, referred to NEXI by the Fukui Bank, a partner
ﬁnancial institution of NEXI.* The Japanese makerused the insurance as a preventive measure to reduce
the risk of non-payment in the export of eyeglass
frames for the Federative Republic of Brazil during thecoronavirus pandemic in 2020.
CHARMANT, founded in 1956 as a manufacturer of
eyeglass frame parts, developed into a comprehensive
eyeglass frame manufacturer covering production of
all parts and surface treatment to manufactureﬁnished products in-house. Now the company has
grown to a global manufacturer, selling the eyeglass
frames and sunglasses with a superior ﬁt and beautiful
ergonomic design based on the continuous developmentof technology in more than 100 countries. CHARMANT
will continue using trade and investment insurance toprovide its eyeglass frames to more customers allover the world.

● Export value covered by the insurance :About JPY 3.5 million● Insurance contract signing date: November 2020

＊ The Fukui Bank has been in partnership with NEXI
since October 2015.

Photo provided by CHARMANT Group

Exports of Composite Additives for Plastics
KYODO CHEMICAL CO., LTD. (KYODO CHEMICAL),a chemical manufacturer based in Hadano City,
Kanagawa Prefecture, took out Export Credit Insurance
for SMEs and AFF Sector as a measure to hedge therisk of non-payment in a contract to export composite
additives for plastics to the Socialist Republic of VietNam.
KYODO CHEMICAL was founded in 1939 for the
purpose of manufacturing industrial chemicals, withthe aspiration of "working together to build a business."
In 1953, the company succeeded in the industrial
production of a basic intermediate, a stabilizer
necessary for thermoforming polyvinyl chloride. It has
since developed as a comprehensive manufacturer of
additives that are essential for molding plastics andproviding functionality for plastics.
Today, the company is engaged in the formulation
design of plastic additives and the contract processing
business, with the philosophy to "constantly anticipate
the needs of the times, create new value, and provide
customer satisfaction.”
KYODO CHEMICAL will continue to use trade andinvestment insurance to expand business overseas,
while meeting the needs of domestic customers.
●Insurance contract signing date: November 2020

38

Annual Report FY

Photo provided by KYODO CHEMICAL CO., LTD.

TOPICS

What made you consider the use of tradeand investment insurance?

Case

I am thinking of launching business with new buyers.
Case

Case

Case

Case

Case

I am thinking of making new investment and/or
obtaining ﬁnancing.

The amount of export transactions with existingcustomers is increasing.

I am thinking of exporting products with a long
pre-shipment period and/or diﬃculty in resale.

The payment method has changed from payment up
front to post-shipment remittance.

I would like to hedge risk in transactions related tocountries with high country risks.

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

Annual Report FY

39

40

Annual Report FY

Insurance Products
Trade and Investment Insurance― How It Works

42

Insurance Products to Support Your Business

43

Insurance Application Process

50

Annual Report FY

41

Insurance Products

Trade and Investment Insurance ‒ How It Works
Trade and investment insurance covers risks associatedwith international trade and other overseas transactions
that cannot be covered by private-sector insurance.
The purpose of trade and investment insurance is tosupport and promote companies on overseas businessdevelopment by mitigating the risks associated withforeign trade and overseas investment.

Foreign Country
Insurance
contract

100% equity

Governmentof Japan

Export, investment,
ﬁnancing, etc.

Japanese
Company

Foreign Company
Overseas Project

Trade and investment insurance covers losses incurred by Japanese companies, banks, etc. due to thefollowing risk events.

Political Risk*

Commercial Risk*● Restriction or prohibition on foreign exchangetransactions, restriction or prohibition on
imports● War, civil war, revolution, etc.
● Delay in the remittance of foreign currencies
attributable to the paying country● Punitive tariﬀs, terrorism● Sanctions imposed by the UN or countries
other than destination countries● Expropriation● Natural disaster, or any other state of emergency
which cannot be considered attributable tothe party to the contract● Non-payment by the counterparty for 3 ormore months(except for cases where theexporter is deemed liable for claims made by
the counterparty, such as damages or defects)● Bankruptcy of the counterparty● Other reasons equivalent to bankruptcy● Unilateral cancellation of export contracts
with foreign governments, etc. before shipment.

（

Unilateral cancellation by a private buyer
prior to shipment is not covered, except forcases where a special clause is attached.

）

Event occurs

The following losses are covered:Pre-shipment Loss

Post-shipment Loss

Overseas Investment Loss

Losses incurred due tofailure to ship

Losses incurred due tofailure to collectreceivables, service
fees, or loans

Losses on investment
assets as a result of
discontinuation orsuspension of a joint
venturePolitical Risk

Risk of force majeure for which the insured party is not liable (also referred to as Country Risk)

Commercial Risk Risk for which the counterparty to an overseas transaction can be deemed liable (also referred to as Credit Risk)

42

Annual Report FY

Insurance Products to Support Your BusinessExport Credit Insurance
NEXI Review of Performance

Insurance for export, intermediary trade, and technical cooperation
In cases where Japanese exporters export cargoes
to foreign countries, engage in intermediary trade, or
provide technology such as construction work, thisinsurance covers losses due to i) force majeure suchas war, revolution, terrorism, import restriction/prohibition,and natural disaster,or ii) inability to ship cargoes due to bankruptcy of thebusiness partner, etc., as well as losses resulting frominability to collect payment after the cargoes havebeen shipped or after the technology has been
provided.

NEXI Activities

ExportExport Credit Insurance
Unable to export

Unable to collectreceivables

Intermediary Trade

Foreign
Importer

Foreign Manufacturer
Country A

Foreign Importer
Country B

FY2020 Financial Results

Unable tocollect
receivables

About NEXI and
Organizational Operation

Unable toship

Japanese Intermediary
TraderInsurance Products

Japanese
Exporter＊ There are diﬀerent ways of providing Export Credit Insurance such as speciﬁc insurance, which provides
coverage for a single business contract, and comprehensive insurance for business entities, which provides
coverage for all contracts of a company within the scope of the policy.

Insurance for License Export (Intellectual Property License Insurance)Intellectual Property License Insurance covers losses
incurred if Japanese companies that provide patents,
expertise, or copyrights abroad are unable to collectpayment of license fees such as royalties due to i)force majeure such as war, or ii) the counterparty’s
bankruptcy or delay in payment.

Annual Report FY

43

Insurance Products

Trade Insurance for Standing Orders from Speciﬁc Buyers
Insurance for companies that continually conduct business with speciﬁc buyers
insurance for each export contract. All insurable
export contracts signed during the insurance
contract period (1 year) are automatically covered if
the contracts meet certain conditions.
* The risks covered by this insurance are the same as
those covered by Export Credit Insurance.

This insurance is suitable for continuoustransactions with a speciﬁc buyer for a Japanese
exporter to supply products, etc. The exporter sets a
limit on insurance claims for a speciﬁc buyer basedon the estimated value of transactions for the year.
The insurance also features simpliﬁed application
procedures. The exporter does not need to apply(Subsidiary)

1Country B
Buyer

Buyer

2

Buyer

Country B

3

Buyer

Country B

Country A

4Country B

Coverage may
unavailable
Buyer
depending on
country category
Country Aor buyercategory.
(Not covered due

2Japanese
Exporter,
etc.

Buyer

Country C(Not covered due
to country category)to buyer category)

1

Scope of coverage sought by exporter

Buyer

Credit risk of exporter’s
subsidiary is not covered.

Scope of coverage provided by NEXI

Trade Insurance
for Standing
Orders fromSpeciﬁc Buyers

Comprehensive Export Insurance with Simpliﬁed Procedure
Insurance for companies that continually and repeatedly conductbusiness with multiple buyers

This insurance comprehensively covers all export
contracts, etc. concluded by Japanese exportersthat meet certain conditions during the insurance
contract period (1 year). The Exporter notiﬁes NEXIof the payments owed for shipped goods based on
the export contract, etc. by the end of the next
month after shipping.

The exporter does not need to apply insurance foreach export contract. Changes to terms andconditions of the contract are also less likely to arise
since the notiﬁcation is made after shipment. The
application procedure is therefore simpler than forother types of insurance.
＊ The risks covered by this insurance are the sameas those covered by Export Credit Insurance.

Comprehensive Export
Insurance with Simpliﬁed
Procedure

Buyer

1

Country A

Buyer

2

Country A

Buyer

3

Country B

Scope of coverage
provided by NEXI

Japanese
Exporter,
etc.

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

44

Annual Report FY

Export Credit Insurance for SMEs and AFF Sector

This insurance provides support for export by
Japanese small and medium sized enterprises (SMEs)
and by businesses in the agriculture, forestry andﬁsheries (AFF) sector. The policy covers losses incurred
if receivables are uncollectable, also oﬀering simple
application procedures and speedy payment ofJapanese
SME orAFF
Businesses

insurance claims to meet the needs of SME and AFF
customers.
Furthermore, applicants for this insurance who also
receive a bank loan can simultaneously complete
procedures to establish a pledge on insurance claim
rights.

ExportForeign
Importer

NEXI Activities

Export Credit Insurance
for SMEs and AFF
SectorNEXI Review of Performance

Insurance for export by Japanese SMEs and by businesses in the
agriculture, forestry and ﬁsheries sector

Unable to collectreceivables
Loan

Insurance Products

Create pledge

Japanese
Bank

Export Bill InsuranceThis insurance is mainly designed to cover the risk of
non-payment at maturity by the buyer to the bankthat has purchased the documentary bill without aletter of credit. This enables a smooth process for thepurchase of the documentary bill by the bank. In
cases where a Japanese bank purchases documentarybills issued to recover export costs, the insurance
covers losses if the bills are not paid because of i)force majeure such as war, revolution, prohibition offoreign currency exchange, suspension of remittance,and natural disaster, or ii) bankruptcy of the foreignimporter, etc.

Japanese
Bank, etc.

Foreign
Collecting
Bank

Unable to remit
Present bill

Japanese
Exporter(Bill Drawer)

Export Contract

Unable to pay
FY2020 Financial Results

Request negotiationof bill

About NEXI and
Organizational Operation

Send bill

Export Bill Insurance

Foreign
Importer(Bill Drawee)

Prepayment Import InsuranceThis insurance covers losses incurred if Japanese
importers make a prepayment for goods in accordancewith the contract terms but the goods do not arrive inaccordance with the contract and the prepayment is
not refunded even after the importers make a refund
request for the prepayment in accordance with therefund terms, due to i) force majeure such as war,
revolution, prohibition of foreign currency exchange,suspension of remittance, and natural disaster, or ii)
bankruptcy or default of the counterparty.

Annual Report FY

45

Insurance Products

Buyer’s Credit Insurance

Insurance for loans, etc. such as for payment of export goods(Buyer’s Credit)

In cases where a Japanese bank or ﬁnancial
insitution provides a loan, etc. (including the purchaseof bonds and the assumption of guarantee obligations)to a foreign importer purchasing goods and services
from Japan, this insurance covers losses incurred if
the Japanese bank is unable to receive repayment of

the loans or bonds due to i) force majeure such aswar, revolution, prohibition of foreign currency exchange,suspension of remittance, terrorism, and natural disaster,or ii) bankruptcy or default of the importer. The terms
and conditions for the loan agreements, etc., mustcomply with international rules.

Loan, etc.

Buyer’s Credit
Insurance

Japanese
Bank, etc.
JBIC

Foreign
Importer

Unable torepayJapanese
Exporter

Exportcontract,
etc.

＊ NEXI provides the insurance only to Japanese commercial banks that extend loans, etc., in cooperation with
the Japan Bank for International Cooperation(JBIC).

Overseas Untied Loan Insurance
Insurance for loan or bond purchase for overseas business or projects
This insurance covers losses incurred by Japanesecompanies, banks, and other institutions*, that provide
a foreign government or company with business funds(which are not tied to export from Japan) foroverseas projects that contribute to economic
development, or that purchase bondsissued by aforeign government or company for the purpose ofﬁnancing, if they are unable to collect the loans or thebonds are not redeemed due to i) force majeure suchas war, revolution, prohibition of foreign currency
exchange, suspension of remittance and natural disaster,or ii) bankruptcy or default of the borrower or thebond issuer.
Foreign
Governmentor Company

Overseas Untied Loan
Insurance

Unable to repay

Japanese
Company
Loans / Purchases bonds or Bank*

Insurance for guarantee of obligation
This insurance covers losses incurred by Japanesecompanies, banks, and other institutions*, thatguarantee the borrowings, etc., of overseas subsidiaries,
foreign governments, or companies (borrowers) if
they are forced to fulﬁll that obligation because
Overseas Untied
Loan Insurance

borrowers fail to repay their borrowings due to i)force majeure such as war, revolution,prohibition of foreign currency exchange, suspensionof remittance and natural disaster, or ii) bankruptcy
or default.

Debt guaranteeBank

Loan, etc.
Japanese
Companyor Bank*Foreign Company

Unable torepay

Overseas Subsidiary,
Joint Venture, etc.

＊ NEXI may provide coverage to foreign companies or banks, etc. that ﬁnance projects that are particularly
necessary for promoting the sound development of Japan’s international trade (e.g., projects that promote theacquisition of important resources and the competitiveness of Japanese companies).

46

Annual Report FY

LEAD Initiative
the SDGs. Under this initiative, we aim to underwrite
insurance of total value of JPY 1 trillion by the endof ﬁscal 2025, while diversifying our funding sources
not only from traditional capital providers, but also
from institutional investors etc.

NEXI Review of Performance

In December 2020, NEXI announced the LEAD
Initiative to respond to the business environment
with and after the Covid-19. This initiative isintended to actively promote the underwriting of
projects, with a focus on contributing to global
carbon neutrality, solving social issues and achieving

Loan Insurance for Green Innovation
is available for Japanese exporters, Japanese companies
that undertake the projects, or Japanese ﬁnancial
institutions that ﬁnance them, if they proactively
disclose information on their measures aimed atenvironmental conservation and climate change
mitigation.

NEXI Activities

This insurance covers renewable energy projects,
energy conservation projects, and projects utilizing
new technologies that contribute to global environmental
conservation, with an increased commercial risk
coverage rate up to 97.5% compared with our usual
loan insurances such as Buyer’s Credit Insurance orOverseas Untied Loan Insurance. This loan insurance

Investment and Loan Insurance for Natural Resources and Energy

Japan

Overseas Resource Project Company, etc.
Underwrite
Energy Resources
Mineral Resources

Production
Facility,
MiningConcession

Proceeds fromresource sales, etc.

Japan

Loan

Borrowing
Subordinated
Loan
Shareholder’sEquityOverseas Untied
Loan Insurance

Repayment
FY2020 Financial Results

Escrow account ata bank in developed
countries

Senior loan special clause

Japanese
Bank, etc.

About NEXI and
Organizational Operation

Oﬀ-taker,etc.

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

Insurance Products

To fundamentally reinforce eﬀorts to secure astable supply of resources from overseas, thisinsurance policy takes into account the distinctive
risk proﬁle of natural resources and energy projects.
It features much lower premium and wider range ofrisk coverage than regular Overseas Untied Loan
Insurance, and can be available as a special clause
to Overseas Untied Loan Insurance.
The insurance covers losses incurred by Japanese● It is eligible for senior loans oﬀered by Japanese banks or ﬁnancial institutions for the projects involving
Japanese companies in the oﬀtake of energy and mineral resources, the acquisition of interests, or thedevelopment of relevant infrastructure (see Note).
Note: In addition to oﬀtake projects in which Japan is the ﬁnal demand location, it is applied to projects inwhich developed energy resources, etc. is highly likely to be transferred to Japan following a request fromJapan.
● A lower premium rate compared to regular Overseas Untied Loan Insurance is applicable only when an escrowaccount is opened with a bank in a developed country. Unless the condition is met, the premiums of regular
Overseas Untied Loan Insurance will be applied, but a higher percentage of commercial risk coverage (97.5%)
will be granted.

Annual Report FY

47

Insurance Products

Overseas Investment Insurance
Insurance for investment (equity investment, etc.)
This insurance covers losses incurred by Japanesecompanies with a subsidiary or a joint venture in aforeign country if the subsidiary or joint venture isforced to discontinue business due to force majeuresuch as war, terrorism and natural disaster. The

insurance also covers losses incurred if overseas
subsidiaries are unable to remit dividends to Japandue to prohibition of foreign currency exchange orsuspension of remittance.

Overseas Investment Insurance

Japanese
Company

Investment

Foreign Company

Unable to remit

Overseas Subsidiary,
Joint Venture, etc.

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

Partial Loss Special Clause

When a subsidiary of a Japanese company conducts
business by establishing sub-subsidiaries in the country
where the subsidiary is located or in third countries,
respectively, this insurance covers losses if any of the

sub-subsidiaries are forced to discontinue businessdue to force majeure such as war, terrorism andnatural disaster, even if the other sub-subsidiaries areable to continue business.

Country Y

Country A
Investment

Ａ

Overseas Investment
Insurance

Business activities
discontinued, etc.

Subsidiary

Investment
Japanese
Company

48

Annual Report FY

Subsubsidiary

Investment

Country B
SubsubsidiaryBBusiness Base Special Clause

NEXI Review of Performancedue to force majeure such as war, terrorism or natural
disaster, even if the other business bases are able tocontinue business.

When a subsidiary of a Japanese company havebusiness bases in the country where the subsidiary is
located, this insurance covers losses if any of thebusiness bases are forced to discontinue businessCountry Y
FactoryＡ

Overseas Investment
Insurance
Investment
Japanese
Company

SubsidiaryBusiness
activities
discontinued,
etc.

NEXI Activities

Factory

B

Insurance Products

Fronting
if the buyer goes bankrupt or payment is delayed.
We call it fronting as NEXI provides the coveragethrough reinsurance with a local Japanese casualty
insurance company.

For cases where a Japanese subsidiary in Singapore,
Hong Kong, Thailand, Vietnam, or the U.K. has acontract with a domestic or overseas buyer forcontinued sale of products, etc., the insurable claim
limit is set for the annual trade amount. This primarily
covers losses resulting from inability to collect receivables

Singapore, Hong Kong, Thailand, UK, Vietnam

Investment

Overseas
Subsidiary

Sales
contract

Buyer

Insurance
contract

FY2020 Financial Results

Reinsurance
contract

About NEXI and
Organizational Operation

Japanese
Company

Japanese Casualty
Insurance Company

Country B

Export contract /Intermediary trade

Buyer

Annual Report FY

49

Insurance Products

Insurance Application Process
Applying for Insurance
Application process for Export Credit Insurance has the following steps.
* Some aspects may vary depending on the type of insurance.

※Re-registration is not required
for those registered previously.

Export contract date

Registration is required fora ﬁrst-time user of insurance
to obtain an insurance user
code (shipper code).

Consideration on terms and condition

Insurance User
(Shipper) Registration

Calculation of premium

Annual Report FY

Buyer credit review/ Credit rating registration

50

RegisteredAlso, note that our screening
procedures for loan agreements
and overseas investmentswith a maturity of two years
or more need certain periodof time, and we recommend
you consult with us at an
early stage of your projects.

Unregistered

Please allow yourself enoughtime for your application
process.

Conﬁrm buyer
registration status

Insurance user (shipper) registration

Prior consultation

Prior Consultation

Buyer Registration
Prior to the applicationfor our insurance, we will
check whether your transaction
counterparty (counterparty
to export contract or payer
including an L/C issuingbank) is registered or not.
If not, a registration will be
required.

NEXI Review of Performance

Policy period
Coverage forpre-shipment risks

Coverage fornon-payment risks

NEXI Activities
About NEXI and
Organizational Operation

Application Period
For more details and assistance, please contact us.

FY2020 Financial Results

You need to apply forinsurance after the export
contract date within ﬁvebusiness days from theshipping date.
Insurance policy will become
eﬀective after the application.

Insurance Products

Post-shipment
periodPayment due date/
Policy expiration datePre-shipment
periodShipping date

Policy eﬀective dateInsurance application date
/ Insurance contract date

Elimination
period(5 days)

Underwriting Department, NEXI head oﬃce
●Business Development Group
Toll-free 0120-671-094●Trade Credit Insurance Underwriting Group Ⅰ
Toll-free 0120-675-094

Osaka Branch●Underwriting Group
Toll-free 0120-649-818

Further information on insurance application isavailable on our website at:（https://www.nexi.go.jp）

Annual Report FY

51

Insurance Products

Insurance Application Process
Insurance Claim Payment Procedure
Insurance claim process for Export Credit Insurance has the following steps.
* Some aspects may vary depending on the type of insurance.

Delegation of authority to NEXI
When making an insurance claim, the insured needs todelegate to NEXI the authority to exercise all rights as acreditor under the export contract.

Loss prevention and mitigation obligations

Notiﬁcation of occurrenceof losses

When you become aware ofany event that may lead to aloss before the payment due
date, you must notify NEXI ofthe event within 15 days.

When you become awarethat you have suﬀered a loss,
you must notify NEXI of theoccurrence of the loss within
45 days.

Deadline for insurance claim

Delegation of authority to NEXI

Insurance claim

Deadline for notiﬁcation of
occurrence of losses

Date of occurrence of
insured event

Occurrence of eventthat may lead to loss

Insurance contract dateNotiﬁcation of event that
may lead to loss

Claim
payment

In principle, the claim
p ay m e n t will b e madewithin 2 months from thedate of insurance claim.

Paris Club ─ a solution for debt recovery
The Paris Club is a meeting where major creditor countries gather to discuss and ﬁnd workable solutions
to payment problems faced by debtor nations. Since its inception in 1956 as an informal group with nolegally binding force, the Paris Club has carried out its activities based on the Paris Club Principles.
At the Paris Club, debt relief (rescheduling, etc.) is discussed with the government of debtor countries forwhich debt payment has become diﬃcult. Through such debt relief and rescheduling, creditor countries areable to ensure debt recovery from debtor countries that do not have suﬃcient foreign currency. While therepayment schedule may be prolonged, the process enables fairness to be maintained between creditor
countries.

52

Annual Report FY

NEXI Review of Performance

Maximize
Expedite

NEXI Activities

Enhance eﬃciency

Recovery phase

Distribution ofrecoveries

Completion ofrecovery activity

Insurance Products

Ensuring recovery
through various measures

Determination of appropriate recovery policy
NEXI determines the recovery policy after the insured makes the insurance claim.

Parties conducting recovery

Obligation to cooperate in recovery eﬀorts●When instructed by NEXI to take necessary measures for recovery, the insured has an obligation tocomply with the instructions. (Cooperation in recovery eﬀorts)●Even in cases where actual recovery activities are conducted by NEXI’s partner collection agencies,
NEXI may request the insured to cooperate in the recovery eﬀorts.

About NEXI and
Organizational Operation●NEXI’s partner collection agencies●Insureds (NEXI’s customers)●NEXI and the Japanese government (through negotiations with debtor countries at the Paris Club, etc.)

FY2020 Financial Results

For further information,please contact:

Asset Management Department…Toll-free 0120-673-094●Claims Service Group ………… TEL.03-3512-7663●Recovery Group ……………… TEL.03-3512-7658

Annual Report FY

53

54

Annual Report FYAbout NEXI and
Organizational Operation
Proﬁle of NEXI

56

Business Plan

58

Business Operation andManagement System

60

Organization Chart

62

Access Map

63

TOPICS

64

Annual Report FY

55

About NEXI and Organizational Operation

Proﬁle of NEXI
Organization Name

Nippon Export and Investment Insurance

Date of Establishment

April 1, 2017

Act

Trade and Investment Insurance Act

PurposeTo conduct insurance business to cover risks which arise in foreign transactions not covered byCompetent Minister

The Minister of Economy, Trade and Industry

CapitalJPY 169,352,324,369 (100% State-owned)

Executive Oﬃcers

Chairman and CEO……………………………………………………… Atsuo Kuroda

ordinary insurance

President…………………………………………………………………… Keiji Wada

Senior Managing Executive Oﬃcer, Member of Board………………… Hidenobu Teramura
Managing Executive Oﬃcer, Member of Board……………………Kazuhiko Nishino
Member of Board…………………………………………………………Hideo Teramoto

Audit & Supervisory Board Member (Full-Time)………………… Keishi Nakamura
Audit & Supervisory Board Member………………………………… Akio Otsuka

Audit & Supervisory Board Member………………………………… Tomoyo Matsui
Number of Employees

216 (as of April 1, 2021)

Scope of Business

1) To conduct trade and investment insurance business operations complying withthe provision of Chapter III of the Trade and Investment Insurance Act.
2) To conduct business incidental to the business stated in 1) above.
3) To underwrite reinsurance for international institutions, foreign governments orforeign companies who underwrite insurance (including reinsurance) whichindemniﬁes losses similar to the losses covered by the trade and investment
insurance, for the liability incurred by such insurers.
4) To underwrite reinsurance for Japanese insurance companies who underwrite
insurance (excluding ordinary insurance) other than the trade and investment
insurance deemed necessary to carry out the purpose of sound development offoreign transactions as prescribed by Cabinet Order, for the liability incurred bysuch insurers under the said insurance.
5) To cede reinsurance of the liability held by NEXI under the Trade and Investment
Insurance Act to international institutions, foreign governments or foreigncompanies who underwrite insurance (including reinsurance) which covers therisks similar to those covered by the trade and investment insurance.

Brief History

Jul. 1999 Enactment of Act on General Rules for Incorporated Administrative Agency
Dec. 1999 Enactment of Act Revising a Section of the Trade and Investment Insurance Act
Apr. 2001 Establishment of Nippon Export and Investment Insurance (NEXI) as an Incorporated
Administrative Agency
Jul. 2015 Enactment of Act Revising a Section of the Trade and Investment Insurance Act
Apr. 2017 Establishment of Nippon Export and Investment Insurance (“new” NEXI) as a
special stock company(Note: From 1950 through 2001, the trade and investment insurance was handled by the Ministry of Economy,
Trade and Industry, the former Ministry of International Trade and Industry)

Oﬃces

56

Annual Report FY(Domestic) Tokyo Head Oﬃce, Osaka Branch(Overseas) Singapore Branch, Paris Representative oﬃce, New York Representative oﬃce

Executive Oﬃcers

NEXI Review of Performance
NEXI Activities
Insurance Products

Back row: Kazuhiko Nishino（Managing Executive Oﬃcer, Member of Board）, Hideo Teramoto (Member of Board)
Front row: Keiji Wada(President),Atsuo Kuroda (Chairman and CEO),
Hidenobu Teramura (Senior Managing Executive Oﬃcer, Member of Board)

About NEXI and
Organizational Operation

FY2020 Financial Results

Tomoyo Matsui(Audit & Supervisory Board Member)

Keishi Nakamura(Full Time Audit & Supervisory Board Member)

Akio Otsuka(Audit & Supervisory Board Member)

Annual Report FY

57

About NEXI and Organizational Operation

Business Plan

Medium-term Business Plan (FY2019 - FY2021)
In pursuit of the actualization of our corporate philosophies, the medium-term business plan (FY2019 - FY2021)
has been formulated based on the following four pillars of action. The plan has been partially revised in December
2020.

Four pillars of action

Improve the quality of our service
and provide security that a larger
number of clients need.

Contribute to the realizationof state policies.

3

4
Enhance the company’s
operating foundation for
long-term stable insurance
business.

2

Create a more attractive
working environment.

１

Medium-term Business Plan (FY2019 - FY2021)
1. Improve the quality of our service and provide
security that a larger number of clients need.
1) Grasp client needs for comprehensive export credit
insurance and continue to review our products andservices in order to ensure the regular use of
insurance products by existing clients.
2) Encourage the continued use of export credit
insurance including S/C among existing clients, andpromote the use of insurance to exporters who
have not yet used it, by strengthening cooperationand collaboration with partner ﬁnancial institutions
and private non-life insurance companies.
3) Expand the scope of companies that make use ofOverseas Investment Insurance by creating amechanism to promote cooperation with private
non-life insurance companies, and enhancing sales
tools. Improve and simplify our products, aligning

58

Annual Report FY

them to clients’ needs in order to target growth inusage.
4) Develop loan insurance products and revise related
systems while taking into consideration market
needs to promote infrastructure exports by Japanesecompanies.
5) Improve clients’ satisfaction with regard to theprocessing of claim payments.
6) Provide clients with useful and easy-to-understandinformation in an eﬀective manner via the company
website.
7) Improve the quality of our client services by
p e r fo r m in g th e PDCA c y c l e b ase d on client
feedback from questionnaires.

NEXI Activities
Insurance Products
About NEXI and
Organizational Operation

FY2020 Financial Results

3. Create a more attractive working environment.
1) Increase employee awareness of the corporate
philosophy and action guideline through personnel
training.
2) Oﬀer more opportunities for our employees toexercise their full potentials in jobs by creating
career plans and supporting the sound achievementof such plans, and by increasing secondments
outside the company and business trainings.
3) Actualize a working environment that supports
various work styles, including working from home.
4) Improve working environment using a PDCA cycle
based on employee questionnaire feedback.

discussions on the management level to establish aframework and to incorporate measurement results
into our policy to countries, debtors and sectors
which have been anticipated of having risk
concentrations. In addition, develop assessment
standards to be able to appropriately judge
insurance underwriting conditions including amountand shares that can be covered by the insurance
based on results of risk analysis, at an early stageof insurance consultation.
3) Create a more systematic mechanism for integrated
risk management and continuously promote theautonomous implementation of the PDCA cycle.
4) Further increase the precision of buyer credit ratings
and actualize more detailed and accurate settingsof credit limit in accordance with credit status ofeach buyer.
5) Regarding country risk, improve our skills in
information gathering and analysis while strengthening
related monitoring. Appropriately reﬂect changes
in the international situation into reviews of ourunderwriting policies/examinations.
6) Formulate a medium-term staﬃng plan that takes
into account the age composition of our workforce.
Pursue strategic hiring, aiming for headcount ofapproximately 200*. Establish a personnel development
plan to secure and develop PF staﬀ capable ofleading the formation stage of business projects, aswell as staﬀ specializing in IT systems, risk management(including outward insurance), fund management
and environmental assessment.
*Number of regular employees including seconded
employees. Does not include staﬀ increase in IT
system department.
7) Analyze risk measurement methods and verify
future cash ﬂow analysis and foreign currency
holdings in the CG Department, and establish asystem for calculating liquidity parameters thatreﬂect risk ﬂuctuations on the liability side in arational manner. Enhance our fund management
system by starting a phased implementation of
unifying fund-related divisions and systems.
8) In the context of the COVID-19 pandemic, strengthen
our credit management system, including monitoringof cases before they lead to insured events.
Achieve an 18.9% recovery rate by FY2021, on
major transactions which we need to collectreceivables.

NEXI Review of Performance

2. Contribute to the realization of state policies.
1) Develop insurance products that address market
needs and revise related systems to promote
infrastructure exports by Japanese companies.
2) Support important business projects that relate tonational policies such as infrastructure development
programs, by actively providing insurance for them.
Note: Projects in priority areas.
A) Business projects with high political importance,
which are related to the government’s policies:●Exports of Japan’s high-quality infrastructure/ Participation in overseas business projects.
●Securing a stable supply of natural resources,
energy and food.
●Exports of advanced environmental and safety
technologies / Participation in overseas projects
that contribute to greater energy eﬃciency
and a better environment.
●Exports of high-quality products and services
developed with Japanese companies’ technologicalexcellence / Participation in overseas businessprojects.
B) Projects that enable major contributions to strategic
overseas expansion of Japanese companies.
C) Collaboration projects with other countries/public
international ﬁnancial institutions that havesigniﬁcant international importance, or businessprojects that would allow us to improve global
recognition of NEXI and to establish collaborative
relationships with other institutions.
3) Provide greater support for international transactionsof Japanese SMEs and their exports of agricultural,
forestry, and ﬁshery products.

4. Enhance the company’s operating foundation for
long-term stable insurance business.
1) Develop a new internal IT system with the aim ofreplacing the current system during FY2021. In
parallel with this, strengthen the structure of our IT
system department and simultaneously improve
the IT environment.
2) Upgrade our process for risk measurements. Basedon the results of quantitative analysis, promote

Annual Report FY

59

About NEXI and Organizational Operation

Business Operation and Management System
Corporate GovernanceSupervision, Evaluation and Business Execution
NEXI is committed to strengthening the supervisionand evaluation of its Board of Directors and otherbodies while enhancing business execution agility throughthe establishment of the Board of Directors and the
Audit & Supervisory Board that are stipulated in the
Companies Act, and the Evaluation Committee, theCorporate Governance Committee, the Corporate
Management Committee and the Advisory Group.

General Meeting of
Shareholders
Audit & Supervisory
Board

Independent
Accounting Auditor

Board of Directors
Evaluation
Committee

Risk Management
Advisory Group

Corporate GovernanceCommittee
Chairman & CEO

Internal
Audit
Group

Monitoring
Committee

Corporate
Management
Committee

CashManagement
Advisory Group

Board of Directors
The Board of Directors makes decisions on importantmanagement issues and supervises the execution of
NEXI’s business operations. The Board of Directors
consists of ﬁve directors, one of whom is an outside
director as stipulated in the Companies Act. The
outside director monitors and supervises the executionof NEXI’s business from an outside perspective.
Audit & Supervisory Board
The Audit & Supervisory Board supervises thedecision-making process of the directors andexecution of their duties based on various laws andregulations such as the Companies Act and the
Articles of Incorporation. The Audit & Supervisory
Board consists of three corporate auditors, two ofwhom are outside corporate auditors as stipulated in

the Companies Act. In collaboration with the full-time
corporate auditor, the outside corporate auditors
audit the execution of duties of the directors from an
outside perspective and contribute to improving
NEXI’s governance structure. In addition, we haveorganized the Audit Secretariat to assist the corporate
auditors with their duties.
Evaluation Committee
The Evaluation Committee consists of outside experts
and the outside director. This committee evaluates
and advises on NEXI's operational and administrative
status as well as on management issues on which theBoard of Directors consults with the committee.
Corporate Governance Committee
The Corporate Governance Committee is anadvisory body to the Board of Directors that is mainlycomprised of outside members. Its purpose is todeliberate on important matters concerning complianceand to verify the company’s internal control system.
Corporate Management Committee
The Corporate Management Committee is a body
mainly comprised of executive oﬃcers and deliberates
on important matters concerning management.
Advisory Group (Risk/Cash Management)
The Risk Management Advisory Group serves as anadvisory body to the Board of Directors on risk
management. The Cash Management Advisory Group
serves as an advisory body to the Chairman and CEO
on cash management. Both of these groups provide
evaluation and advice based on the specialized
knowledge of outside experts.
Monitoring Committee
The Monitoring Committee deliberates on mattersrelated to the execution of the company's business,
including administrative errors.
●Government Involvement
NEXI is a 100% state-owned company that operates
trade and investment insurance business under thecontrol and supervision by the competent minister,administration and inspection by the Board of Audit
of Japan and the competent ministry.
●Internal Control Principles
In accordance with the Companies Act, NEXI’s Boardof Directors has established Internal Control Principles
to ensure proper operation of the company. Internal
rules and related systems have been created in linewith those principles.

Compliance Promotion
NEXI is aware of its public mission and social
responsibility as the policy-based ﬁnancial institution
engaging in trade and investment insurance system
and re ga rd s c o m pl i a nc e t o b e o ne of i t s m o st60

Annual Report FY

important management issues in order to consistently
comply with laws and regulations and to operatebusiness in a fair and just manner. The following are
related eﬀorts:

●System for Implementing and Promoting Compliance●NEXI has established the Corporate GovernanceCommittee as a meeting committee structure withthe purpose of deliberating on important complianceissues and monitoring the state of compliance.
●NEXI has established a department and director in
charge of compliance issues responsible for improving
and promoting the compliance system and thoroughly
implementing the system among executive oﬃcers
and the Staﬀ Members.
●NEXI has stipulated a reporting route to detect
important issues concerning compliance at an earlystage and implement necessary corrective measures.
NEXI has also organized an eﬀective internal reporting
system, which it operates appropriately.
●NEXI has established the Legal and ComplianceGroup in charge of managing legal compliance andcompliance-related initiatives.
●Policy Related to Antisocial Forces●NEXI does not have any relation with antisocial
forces, resolutely confronts antisocial forces as anorganization, and ﬁrmly rejects improper demands
made by such forces.

NEXI Review of Performance
NEXI Activities
Insurance Products●Awareness and Thorough Implementation ofCompliance Rules●NEXI has established basic compliance policies toensure that all executive oﬃcers and staﬀ members(including dispatched workers; Collectively, “theStaﬀ Members”) conduct their tasks in compliancewith the applicable laws and regulations and the
Articles of Incorporation in a sound and appropriatemanner.
●NEXI has stipulated internal rules concerning
conﬁdential information management, information
security policies, and other information management
issues, and created a framework to appropriately
store and manage conﬁdential information andinformation assets.
●NEXI has compiled a compliance manual thatoutlines basic matters concerning compliance thatshould be known by all executive oﬃcers and the
Staﬀ Members, as well as important laws andregulations that must be observed. The manual
also provides a comprehensive explanation oninternal rules concerning compliance to help
promote a better understanding of complianceissues. We strive to promote awareness and toensure implementation of compliance rules througheducation and training activities related to compliancein line with the annual compliance promotion
program that we formulate each year.

Risk Management

Cash Management / Investment Risk
NEXI’s cash are reserves necessary for the paymentof future insurance claims.
In order to pay claims in an appropriate amount andin a timely manner, NEXI gives the greatest priority on
ensuring safety and certainty of the cash reserve, andOperational Risk
NEXI focuses on reducing potential operational risks
in normal business activities including administrative
errors. When such risk events occur, we will aim toappropriately report and quickly respond to thesituation while taking preventive measures.
Risk events that have occurred will be reported to theMonitoring Committee to enhance the eﬀectivenessof operational risk management. NEXI fosters anorganizational culture that values disciplined behavior
together with the previously mentioned compliancepromotion.
●System for Promoting Risk Management●NEXI's Corporate Management Committee deliberates
on important matters related to risk management
and monitors the management status of each risk.
●NEXI has organized the Advisory Group for risk
management and cash management.
●Large-Scale Disaster Risk
●With th e r e c o g n itio n th at r isks ar ising fromlarge-scale disasters can pose a serious risk to thebusiness, NEXI has formulated a business continuity
plan to avoid as much as possible the impact oflarge-scale disasters on its business and to quickly
restore business when such disasters do occur.

Annual Report FY

FY2020 Financial Results●Approaches to Integrated Risk Management
Insurance Underwriting Risk Management
When underwriting insurance, NEXI conducts risk
assessments based on various data collected by ourcredit department, overseas oﬃces, and specialized
research organizations, in addition to information
received by our underwriting departments throughour customers. We also monitor the status of the
debtor countries, companies and projects to which
credit is extended, to reﬂect any changes in their credit
conditions into our underwriting policies.
In addition to managing credit for individual projects,
we assess risk exposure of the entire portfolio,
conduct concentration analysis and scenario analysis,set parameters on underwriting amounts and cede
accumulated risks to maintain an appropriate andimproved underwriting portfolio.

conduct appropriate and eﬀective cash managementby keeping a keen eye on the market trends.

About NEXI and
Organizational Operation

As the sole specialized institution responsible for the
trade and investment insurance business in Japan,
NEXI aims to contribute to the sound development ofinternational business by providing security to evenmore customers engaging in global trade, promoting
eﬀorts to implement Japan’s growth strategy, andactively meeting the diverse needs of our customers.
In order to fulﬁll our social roles, NEXI has constructed
the following framework to appropriately conduct
integrated risk management.

61About NEXI and Organizational Operation

Organization Chart（as of April, 2021）

General Management andPublic Relations Group

GeneralManagement
andAdministration
Department

Procurement andAdministration Group

Treasury Group
Policy Contract GroupAccounting Group
Financial Management andReinsurance Group

Personneland Human
Resources
Department
Planning
and Policy
Department
Advisory Group
for CashManagement
Audit & Supervisory
Board Members
Audit & Supervisory
Board
Audit Secretariat

Independent
Accounting
AuditorEnvironmental
Guideline
Examiner
Environmental
Guidelines
Examiner
Secretariat

Corporate
Governance
Department
Business
Process and
IT Management
Department

Personnel Group
Human Resource Development
and Recruitment Group
Corporate Planning andInternational Relations Group
Corporate Policy and DataManagement Group
Insurance System
Planning Group

Risk Management Group
Legal and Compliance Group
Business Process
Management Group
Information System
Management Group

Project Management GroupIT Development Group
Business Development Group

GeneralMeeting of
Shareholders

Board ofDirectors

Underwriting
Department

Chairmanand CEO

Overseas Investment Insurance
Underwriting Group Ⅱ

Corporate
Management
Committee

Evaluation
Committee

Corporate
GovernanceCommittee

AdvisoryGroup
for RiskManagement

Personnel
Committee

Trade Credit Insurance
Underwriting GroupⅠ
Trade Credit Insurance
Underwriting Group Ⅱ
Overseas Investment Insurance
Underwriting GroupⅠ

Management Group
Structured
and Trade
FinanceInsurance
Department

Power Group
Natural Resources GroupⅠ
Natural Resources Group Ⅱ
Infrastructure Group

Monitoring
Committee

AssetManagement
Department

Claims Service Group
Recovery Group
Credit Analysis GroupInternal Audit
Group

CreditDepartment

Environment GroupCountry Risk Analysis Group
Credit Administration Group

Osaka Branch

Underwriting Group

Singapore
Branch62

Annual Report FY

Overseas
Oﬃce

Paris Representative Oﬃce
New York Representative Oﬃce

About NEXI and Organizational Operation

Access Map
Head Oﬃce

NEXI Review of Performance

Singapore Branch
16 Raﬄes Quay#38-06, Hong Leong Bldg.,

Chiyoda First Bldg., East Wing,

Singapore 048581

5th Floor, 3-8-1 Nishikanda,

Phone: +65-6429-9582 Fax: +65-6222-0481

Chiyoda-ku, Tokyo 101-8359 Japan
Phone: +81(0) 3-3512-7650＊ NEXI Singapore is not a licensed insurer nor insuranceintermediary under the Singapore Insurance Act.

Fax: +81 (0)3-3512-7660

NEXI Activities

JR Suidobashi Sta.

NEXI

Chiyoda First Bldg.
EAST Wing

e
Lin

Line

ta.
shita S
Kudan
Johnan Shinkin Bank
Yasukuni Ave.

NEXI Singapore

Paris Representative Oﬃce
Toei Subway
Shinjuku Line

Subway Jinbocho Sta.
Sendaimae
Tokyo Metro
Crossing
Hanzomon Line

Insurance Products

Ohara
Bookkeeping
SchoolVilla Fontaine
Kudanshita
Senshu Univ.
A4
A2
Exit
Sunlight Bldg. Exit

No.5
Exit

No.7 Exit
Kitanomaru Square

East
Exit

y Mitaubwa
Toei S

way
ress
Exp

ai
oz
oT
etr
oM
ky
To ve.
A
iro
ej

M

n
olita
rop
Met

.
Ave
est
shi W
oba
Suid

West
Exit

Ave.
san
Haku

JR Chuo Linec/o JETRO 27, rue de Berri, 75008 Paris France
Phone:+33（0）1-4261-5879
Fax:+33（0）1-4261-5049

Osaka Branch
About NEXI and
Organizational Operation

NEXI Paris

Aioi Nissay Dowa Insurance
Yodoyabashi Bldg., 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

New York Representative Oﬃce
N.Y. 10017 U.S.A

Yodoya Bridge

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

Osaka City Oﬃﬁce46th Street

NEXI Osaka

Aioi Nissay Dowa Insurance
Yodoyabashi Building
Yodoyabashi Sta.
Mizuho Bank

Keihan Line

45th Street
44th Street
Penn Station
Port Authority

43rd Street
42nd Street

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

NEXI NY

Park Avenue

Hanshin Expressway Loop Line

Phone:+1-212-819-7769 Fax:+1-212-997-0464

Vanderbilt Avenue

Bank of Japan

Route 1

Madison Avenue

Osaka Metro Tanimachi Line

Fifth Avenue

Oye Bridge

Yodoyabashi Sta.

Higobashi Sta.

Tosabori Ave,

c/o JETRO 565 Fifth Avenue, 4th Floor, New York,

Osaka Metro
Midosuji Line

Midosuji St.

Tosabori River

Osaka Metro
Yotsubashi Line

Dojima River

Kita-Shinchi Sta.

FY2020 Financial Results

JR Tozai LineshiHiga da Sta.
Ume
ta.
da S
Ume

Nishi Umeda Sta.

ta.
aS
ak
s
O
JR

Grand
CentralTerminal

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

Annual Report FY

63

TOPICS

Promoting Trade andInvestment Insurance

NEXI works to publicize and promote the use of trade and investment
insurance. We do this primarily through partnerships with the central
government ministries and agencies, government-aﬃliated organizations, andpartner ﬁnancial institutions that support SMEs’ overseas businessdevelopment. In ﬁscal 2020, we took a more active approach than previously
to raising public awareness, conducting public relations activities including
holding NEXI-sponsored webinars and posting YouTube videos, as well as
producing a series of case studies on insurance events.
We held a NEXI-sponsored webinar for businesses and related organizationsin Japan in December 2020. We also held a seminar for businesses andrelated organizations in Singapore in March 2021, which featured apresentation entitled "Trade and Investment Insurance in the Coronavirus
Pandemic: Its Role and Case Studies -- Risk Management Approaches forOverseas Business.” The YouTube videos consist of six new introductory
videos that we made for customers using trade and investment insurance forthe ﬁrst time. The videos provide overviews of our products as well as otherinformation such as how to use them. The series of insurance event casestudies introduce past cases from trade and investment insurance, aiming to
make it easier to understand the role of trade and investment insurance.
We also actively participate in and present at webinars hosted by the central
government ministries and agencies, government-aﬃliated organizations, andpartner ﬁnancial institutions that support the overseas expansion of Japanesecompanies during the pandemic. We believe that all of these activities havehelped to raise awareness of trade and investment insurance.
NEXI will continue to make more eﬀective use of various media to provide
information to a broad range of audience, from Japanese companies that areconsidering using trade insurance for the ﬁrst time to companies that are
already familiar with trade operations.

NEXI oﬃcial YouTube channel

https://www.youtube.com/channel/UCCeu-adMA6ypIxJisMf13VQ

64

Annual Report FY

FY2020 Financial Results

FY2020 Financial Review

66

Financial Statements etc.

67

Annual Report FY

65

FY2020 Financial Results

FY2020 Financial Review
Overview of Financial Statements（Millions of Yen）

4th Fiscal Year
Ordinary income
Underwriting income（Net premiums written）

51,78130,12530,125

Subrogation income

9,070

Investment income

12,568Other ordinary income
Ordinary expenses

18
52,981

Underwriting expenses

46,000（Net claims paid）

23,076（Acquisition of receivables subrogated by paying claims）（5,351）（Provision for outstanding claims）

3,093（Provision for unearned premiums）（7,475）（Provision for contingency reserves）

32,832

Subrogation expenses
Operating and administrative expenses
Other ordinary expenses
Ordinary loss
Extraordinary income

339
6,635
8
（1,200）1,200

Income before income taxes-

Total income taxes

7

Net loss（7）

Total assets

1,779,117

Net assets

794,868

Proﬁt and Losses
NEXI’s underwritten amount in FY2020, the total
amount of insurance contracts underwritten during
the ﬁscal year (the same applies below), increased
4.1% year on year to JPY 6.1 trillion. As a result ofeﬀorts such as supporting the procurement ofworking capital to respond to the funding needs ofJapanese subsidiary companies developing businessoutside Japan to address the Covid-19 pandemic,
NEXI’s underwritten amount for Overseas Untied
Loan Insurance increased signiﬁcantly at 226.5% year
on year, accounting for approximately 20% of overall
underwriting. However, export credit insurance,
which accounts for about 60% of overall underwriting,fell 14.7% year on year in light of the drop in overall
Japanese exports.
Amidst this imbalance in the underwritten amountof insurance, premium income, the sum of direct

66

Annual Report FY

premiums written and inward reinsurance premiums
written recognized at the time of premium claim (thesame applies below), fell 24.4% year on year toabout JPY 31.85 billion from about JPY 42.13 billion.
Subrogation income, primarily consisting ofrecoveries, fell 58.9% year on year to JPY 9.07 billion
from about JPY 22.09 billion, and investment income
rose 36.9% year on year to JPY 12.57 billion fromabout JPY 9.18 billion. Meanwhile, due to a decreasein country risk events, net claims paid decreased
59.6% year on year to JPY 23.08 billion from about
JPY 57.06 billion, and subrogation expenses
decreased 57.5% year on year to JPY 340 million
from about JPY 800 million. Operating and administrative
expenses totaled JPY 6.63 billion. As a result, aprovision for contingency reserves of JPY 32.83
billion was recorded.

Financial Statements etc.
Balance Sheet(As of March 31, 2021)

Account Title

AmountAccount Title（Assets）
Cash and bank deposits（Millions of Yen）

Amount（Liabilities）
950,898

946,344

Insurance liabilities

3,177

Outstanding claims reserves

760,339

Underwriting reserves

943,167

Government bonds

344,449

Unearned premiums

140,165

Municipal bonds

122,200

Contingency reserves

803,002

Corporate bonds

258,200

Foreign securities

35,489Deposits received

26,069Receivables subrogated by paying claims

52,246

Unearned income

7,807

Tangible ﬁxed assets

1,105

Accrued amount payable

2,457

Buildings

318

Equipment and ﬁxtures

785

Provision for employees’ bonuses

121

Construction in progress0

Provision for directors’ bonuses

10

Other tangible ﬁxed assets

2

Provision for employees’ retirement beneﬁts

504

Intangible ﬁxed assets

3,523

Provision for directors’ retirement beneﬁts

17

Software2,053

Total liabilities

Software in progress

1,470（Net assets）

Securities

Accrued premiums

984,249

10,888

Capital169,352

4,095

Capital surplus

625,55310

Foreign reinsurance accounts receivable739

Accounts receivable

941
3,963

625,553

Legal capital surplus（38）

Retained earnings（38）

Other retained earnings（38）

Retained earnings brought forward

Deposits

527

Total shareholders’ equity

794,868

Other assets

613

Total net assets

794,868

Deferred tax assets

118

Total assets

1,779,117

Total liabilities and net assets

About NEXI and
Organizational Operation

Reinsurance accounts receivable

Accrued income

921

Other liabilities

Insurance Products

Other assets

37,253

Other liabilities

NEXI Activities

950,898

Bank deposits

NEXI Review of Performance（Millions of Yen）

1,779,117
FY2020 Financial Results

Annual Report FY67

FY2020 Financial Results

Financial Statements etc.
Notes:

1Signiﬁcant accounting policies are as follows.
(1) Valuation of securities: Bonds held to maturity arerecorded at amortized cost (straight-line
depreciation method).
(2) Depreciation of tangible fixed assets is calculatedusing the straight-line method.
(3) Depreciation of intangible fixed assets is calculatedusing the straight-line method. Software for internal
use is depreciated based on the straight-line
method over the period of internal use (five years).
(4) Foreign-currency receivables and payables areconverted into Japanese yen at fiscal year-end
exchange rates, and conversion adjustments arerecorded as profit or loss.
(5) Provision for employees’ bonuses is recognized forthe payment of employees’ bonuses, based on the
expected amount to be paid at the end of the year.
(6) Provision for directors’ bonuses is recognized forthe payment of directors’ bonuses, based on the
expected amount to be paid at the end of the year.
(7) Provision for employees’ retirement benefits is
recognized in preparation for the payment of
employees’ retirement allowance, based on the
projected retirement benefit obligation at the endof the year. Retirement benefit obligation andretirement benefit expense are calculated based on
the simplified method whereby the requested
amount to be paid at the end of the year forvoluntary retirement of all employees is regarded as
the company’s benefit obligation.
(8) Provision for directors’ retirement benefits is
recognized in preparation for the payment of
directors’ retirement allowance as the requested
amount to be paid at the end of the year, in
accordance with the internal regulations.
(9) Contingency reserves are recognized in preparation
for the payment of large insurance claims due topolitical risks or other reasons, in accordance with
Article 22 of the Trade Insurance and Investment
Act.
(10) Consumption tax and local consumption taxes areaccounted for by the tax-excluded method.
2Signiﬁcant components of deferred tax assets
include the disallowance of provision for employees’
bonuses, provision for employees’ retirement beneﬁts,
and of unpaid business taxes, while the main
component of deferred tax liabilities is retirement
beneﬁts liabilities translation adjustments.
3 Financial instruments.
(1) Statusa. Policy on financial instruments
NEXI is engaged in the trade and investment
insurance business. Some of its surplus is invested insecurities to strengthen NEXI’s financial base. In
addition, the surplus from the trade and investment
insurance business is invested in securities,
deposits, and other financial instruments to theextent stipulated in Article 29 of the Trade
Insurance and Investment Act.
b. Financial instruments and risk
Receivables subrogated by paying claims are
exposed to the credit risk of debtor countries ordebtors. Securities are exposed to the fluctuation
risks of interest rates and of market prices.
c. Risk management for financial instruments

68

Annual Report FY[1] Country risk management
In concluding insurance contracts that could
cause the acquisition of receivables subrogatedby paying claims, NEXI’s Country Risk Analysis
Group conducts risk assessment by gathering
information through the Berne Union and theOECD and by researching and evaluating countryrisk.
[2] Credit risk management
For the credit risk management of export
contract counterparties (overseas buyers), theCredit Administration Group conducts credit
check and assessment of overseas buyers.
[3] Market risk management
Regarding the fluctuation risks of interest rates,
prices, and exchange rates associated withinvestments in securities and time deposits, NEXI
manages those risks in line with the fundmanagement plans discussed by the Board of
Directors. The current state of managing theserisks is ascertained and controlled at the
Corporate Governance Department Risk Management
Group.
d. Supplementary information on fair value of financial
instruments
The fair value of financial instruments is calculated
based on quoted market prices and in a rational
method when market prices are not available. Suchfair values are measured under certain assumptions,and therefore they may differ under other assumptions.
(2) Fair value of financial instruments
The table below describes carrying amounts
shown on the balance sheet, fair value anddifferences of financial instruments as of the end of
the year, excluding instruments for which fair value
cannot be measured reliably. (Refer to Note 2.)（Millions of Yen）
Carrying amountshown onFair value Diﬀerence
balance sheet

924,849924,849－

760,339

799,496

39,15822,671
22,671－－
Allowance for doubtful accounts ※22,671
22,671（Net）⑷ Accrued premiums
4,095
4,095
Assets
1,711,954 1,751,112⑸ Deposits received
20
20
Liabilities
20
20

－
－
－
－
39,158－－⑴Cash and bank deposits⑵Securities
Bonds held to maturity⑶Receivables subrogated by paying claims(commercial risk)
Receivables subrogatedby paying claims※Allowance for doubtful accounts associated with receivables
subrogated by paying claims is deducted.

Note 1. Valuation method for ﬁnancial instruments anditems on securities and other instruments(1) Cash and bank deposits
The book value is deemed as the fair value, since it
is scheduled to be settled in a short period of time
and the book value approximates the fair value.

(2) Securities
The fair value is based on the quoted price at thestock exchange or that obtained from the financial
institutions. Regarding the bonds held to maturity,
the table below describes carrying amounts shownon the balance sheet, fair value and differences by
type.
Type
Those with fairvalue exceeding
the carrying
amountFair value Diﬀerence

Government
and municipal 458,025 498,675
bonds

40,649Those with
Government
fair value notand municipal
exceeding thecarrying amount bonds

302,313 300,822 （1,492）

Total

760,339 799,496 39,158

Bonds held to maturity that were sold during the current ﬁscal year are as follows.
（Millions of Yen）
Cost of bonds soldSale priceGain or loss on sale

1,467

1,469

2

Foreign securities

Reason for sale（Millions of Yen）

Carrying amount shown on balance sheet
Cash and bank deposits

26,049Deposits received

26,049Cash and bank 924,849
deposits

－

－

－

－

Securities Bonds
held to maturity

6,969 79,553 147,245 361,800 158,500

Accrued premiums

4,095
－
－
－
－
935,914 79,553 147,245 361,800 158,500

Total－ 26,049－－－－－ 26,049※Receivables subrogated by paying claims (commercial risk) are not given due to the absence ofredemption dates.
＊1 Of cash and bank deposits, the amount accumulated in the aforementioned Fund is included in Undetermined.

4Accumulated depreciation of tangible ﬁxed assets is JPY
197 million.
5The breakdown of underwriting reserves at the end of theyear is as follows.
Underwriting reserves

Unearned premiums(before the deduction of underwriting reserves for outward reinsurance)
Underwriting reserves for outward reinsurance related to the above
Net (a)Underwriting reserves for others (b)Total (a + b)

JPY154,132million
JPY13,967million
JPY140,165million
JPY803,002million
JPY943,167million

6Net assets per share is JPY52,991.17.
Total net assets, the basis for calculating net assets per
share, is JPY 794,868 million, and the full amount isrelated to common shares. The number of commonshares at the end of the year is 15 million.
7Receivables subrogated by paying claims (politicalrisk), receivables subrogated by paying claims(commercial risk), expected receivables subrogatedby paying claims (political risk), expected receivables
subrogated by paying claims (commercial risk),transferred claims, and their total are as follows.
Receivables subrogated by paying claims (political risk)
Receivables subrogated by paying claims(commercial risk)
Expected receivables subrogated by paying claims(political risk)
Expected receivables subrogated by paying claims(commercial risk)
Transferred claims
Total

JPY29,575million
JPY22,666million－
JPY5million－
JPY52,246million

Additional information
On April 1, 2021, a ministerial ordinance (Ordinance ofthe Ministry of Economy, Trade and Industry No. 16,2021) partially amending a ministerial ordinancepertaining to the accounting of Nippon Export andInvestment Insurance was officially announced, andwent into effect on the same day.
Until March 31, 2021, Receivables subrogated bypaying claims (commercial risk) were recorded as
Receivables subrogated by paying claims, but beginningfrom April 1, 2021, when there are amounts that could
potentially be recovered by exercising right toreimbursement on the applicable receivables (excluding
those for which there is no judicial decision or
agreement between the parties), the applicable amountwill be deducted from the Outstanding claims reserves
for the applicable fiscal year.
8Amounts are rounded off to the nearest integer unit.
Annual Report FY

FY2020 Financial Results

Cash and bank deposits are reserves held in an
account at Banco Nacional de Cuba that the
government of Cuba opened under the name of “NEXI”(hereinafter referred to as “the Fund”), in accordancewith an agreement reached by the Japanese andCuban governments.
Deposits received represent the amount equivalent to
the Fund. This is because the use of withdrawals fromthe Fund is restricted to activities including Cuban-peso
denominated projects related to the development of
Cuba approved by the governments of two countries,
which means repayments made by the Fund’s users to
NEXI in Japanese yen is deemed as a partial recovery of
the receivables subrogated by paying claims (politicalrisk).
They are not included in (1) cash and bank deposits or(5) deposits received, since it is impossible toreasonably predict cash ﬂows, and therefore it isextremely diﬃcult to measure their fair values.

（Millions of Yen）

Over 1 Over 3 Over 5 Over 10 Over 20 Undetermined
Within 1 to 3
to 5 to 10 to 20*1
year
years years years years years

About NEXI and
Organizational Operation

Note 2. Financial instruments whose fair value cannot
be measured reliably
Financial instruments whose fair value cannot bemeasured reliably are as follows.

It is diﬃcult to measure the fair value of receivables
subrogated by paying claims, due to the absence of value
based on market prices. Similarly, it is diﬃcult to measure
the fair values of receivables subrogated by paying claims(political risk) and of expected receivables subrogated bypaying claims (political risk), due to the diﬃculty inpredicting the time and frequency of concluding debt
rescheduling agreements and their details, such as a grace
period and debt reduction.
Note 3. Maturity analysis of ﬁnancial assets

Insurance Products

KfW bonds held by NEXI as bonds held to maturity
were not applicable under “securities issued by aforeign government or international institution” asprescribed in Article 17 of the Enforcement
Regulations of the Trade Insurance and Investment
Act, and these were sold during the current ﬁscal
year as the holding of KfW bonds infringed on Article
29, paragraph 4 of the Trade Insurance and Investment
Act.
(3) Receivables subrogated by paying claims (commercial
risk)
The book value shown on the balance sheet as ofthe end of the year less allowance for doubtful
accounts is deemed as the fair value, since thecalculated amount approximates the fair value.
(4) Accrued premiums and (5) Deposits received
Regarding accrued premiums, the book value isdeemed as the fair value since it is scheduled to besettled in a short period of time and the book value
approximates the fair value.

29,575NEXI Activities

Type

Receivables subrogated by paying claims(political risk)

NEXI Review of Performance（Millions of Yen）

Carrying amountshown onbalance sheet（Millions of Yen）
Carrying amount shown onbalance sheet

69

FY2020 Financial Results

Financial Statements etc.

Statement of Income (April 1, 2020 ‒ March 31, 2021)（Millions of Yen）

Account Title
Ordinary income
Underwriting income
Net premiums written

51,78130,12530,125

Subrogation income

9,070

Investment income

12,568Interest and dividends income
Gain on sales of securities
Foreign exchange gains
Other ordinary income
Ordinary expenses

7,464
2
5,102
18
52,981

Underwriting expenses

46,000Net claims paid

23,076

Acquisition of receivables subrogated by paying claims（5,351）

Commissions（193）

Provision for outstanding claims

3,093

Provision for underwriting reserves

25,357

Provision for unearned premiums（7,475）

Provision for contingency reserves

32,832Foreign exchange loss

17

Other underwriting expenses

0

Subrogation expenses
Operating and administrative expenses
Other ordinary expenses
Other ordinary expenses
Ordinary loss
Extraordinary income
Gain on government grants

339
6,635
8
8
（1,200）
1,200
1,200

Income before income taxes-

Income taxes-current

12

Income taxes-deferred（5）

Total income taxes
Net loss70

AmountAnnual Report FY

7（7）

Notes:Premiums written

JPY31,852million

Reinsurance premiums paid

(JPY1,727million)

Total

JPY30,125million(2)The breakdown of net claims paid is as follows.

－

Total

JPY23,076million(3)The breakdown of commissions is as follows.
Commissions for agencies and others

JPY2million

Commissions for outward reinsurance (JPY194million)
Total(JPY193million)

Provision for unearned premiums (before the deduction ofunderwriting reserves for outward reinsurance)
Provision for underwriting reserves for outward
reinsurance related to the above(JPY6,316million)
JPY1,159million

Net (a)(JPY7,475million)

Provision for other underwriting reserves (b)JPY32,832million

Total (a + b)

JPY25,357million

Interest from bank deposits

JPY1,299million

Interest and dividends from securities

JPY6,165million

Total

Recovery expenses (inward reinsurance)

JPY17million

Loss on uncollected interest

JPY48million

Foreign exchange loss (subrogation expenses)

JPY11million－
JPY7,464million(6)T h e b re a k d o w n o f s ub r og a t i o n i nc o me an dsubrogation expenses is as follows.

JPY339million

2Business with related parties is as follows.
（Millions of Yen）
Ratio of RelationshipAmount of Account Balance
Transaction Transactions2 title at end
Type Entity Voting
with
party
of yearrights, etc.
Proceeds
Major Ministry Directly Trade andinvestment fromofheldshareholder
1,200 － －government
insurance
Finance 100%
administration grants1

Transaction terms and decision policies oftransaction terms, etc.
Note 1. The grants are provided to partially compensate forthe impact that debt deduction for heavily
indebted poor countries (HIPCs), etc. has on the
trade and investment insurance business.
Note 2. The figure does not include consumption tax, etc.
3Gain on government grants recorded as extraordinary
income refers to grants provided by the government
to partially compensate for the impact that debt
deduction for HIPCs and others has on the trade andinvestment insurance business.
4Net loss per share is JPY 0.48.
Net loss for the current fiscal year, the basis forcalculating net income or loss per share, is JPY 7
million, with the full amount of the loss being related
to common shares.
The average number of common shares during the
fiscal year was 15 million.
The diluted net loss per share is not given since there
are no dilutive shares.
5A m o u n t s a r e r o u n d e d o f f t o t h e n e a r e s t
integer unit.

About NEXI and
Organizational Operation(5)The breakdown of interest and dividends income is asfollows.

Other interest and dividends

JPY70million

Insurance Products(4)The breakdown of provision for underwriting
reserves (figures in parentheses are reversal ofprovision) is as follows.

JPY192million

Debt recovery expenses (underwritten)

Total

JPY23,076million

Reinsurance claims recovered

Loss on bad debts (commercial risk)

NEXI Activities

Insurance claims paid

Subrogation expenses

NEXI Review of Performance

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

Subrogation income

Interest from receivables subrogated bypaying claims (political risk)
Recovery of receivables subrogated bypaying claims (commercial risk)
Interest from receivables subrogated bypaying claims (commercial risk)
Recovery of transferred claims
Recovery received
Recovery received of overseas inward
reinsurance
OthersForeign exchange gains(subrogation income)
Total

FY2020 Financial Results

Recovery of receivables subrogatedby paying claims (political risk)

JPY522million
JPY2,913million
JPY1,429million
JPY17million
JPY71million
JPY3,160million
JPY590million
JPY20million
JPY349million
JPY9,070million
Annual Report FY71

FY2020 Financial Results

Financial Statements etc.
Statement of Changes in Shareholders’ Equity(April 1, 2020 ‒ March 31, 2021)（Millions of Yen）

Shareholders’ Equity
Capital Surplus
Share
CapitalBeginning balance

Retained Earnings
Other retained
earnings

Legal capital Total capitalsurplussurplusRetained earnings
brought forward

169,352

625,553

Total
retainedearnings

Total
shareholders’equity794,875

Total net
assets625,553

（31）

（31）

794,875

-

（7）

（7）

（7）

（7）

（7）

（7）

Changes during the year
Net loss
Total change during the year
Ending balance

-

-

-

（7）

（7）

169,352

625,553625,553

（38）

（38）

Notes:
1Type and number of issued shares and treasury
shares（Thousands of Shares）
Decrease
Number ofduring the shares as ofﬁscal
March 31, 2021
year 2020

Number ofshares as ofApril 1, 2020

Increaseduringthe ﬁscal
year 2020

Commonshares

15,000－－15,000Total

15,000－－15,000Issued shares

Note: NEXI holds no treasury shares.

2Stock acquisition rights and treasury stock acquisitionrightsThere are no applicable matters.
3Dividends
There are no applicable matters.

72

Annual Report FY

794,868

794,868

Statement of Cash Flows (April 1, 2020 ‒ March 31, 2021)
Account Title
Cash ﬂows from operating activities

AmountPremiums received

34,696

Insurance claims paid

（23,075）

Commissions（2）

Proceeds from collection of receivables subrogated by paying claims

26,250

Payment for allocation of collection from receivables subrogated by paying claims（4,372）

Payment for operating and administrative expenses（5,165）（64）

Subtotal

28,268Interest and dividend income received

10,651

Income taxed refund (paid)（30）

Others（14）

Net cash provided by (used in) operating activities

38,875

Cash ﬂows from investing activities
Payments into time deposits（203,830）

Purchase of securities（158,918）

Proceeds from repayment of time deposits

175,334
9,562

Total from asset management activities（177,852）(Total from operating and asset management activities)(138,977)

Purchase of tangible ﬁxed assets（850）

Purchase of intangible ﬁxed assets（3,251）Others0

Net cash provided by (used in) investing activities（181,952）

Cash ﬂows from ﬁnancing activities

Proceeds from government grants received

1,200
1,200

Eﬀect of exchange rate changes on cash and cash equivalents（9,892）

Net increase (decrease) in cash and cash equivalents（151,770）

Cash and cash equivalents at the beginning of the year

905,087

Cash and cash equivalents at the end of the year

753,317
3The reconciliation of the balance of cash and cash
equivalents at the end of the year and the amounts
of items presented in the balance sheet is as follows（Millions of Yen）

Cash and bank deposits
Time deposit
Other bank deposits*
Cash and cash equivalents at the end of the year

950,898（171,532）（26,049）
753,317※Other bank deposits are not included in the scope of cash
and cash equivalents due to the following reason. Under the
debt relief agreement between the governments of Japanand Cuba, the Cuban government opened an account at
Banco Nacional de Cuba under the name of “NEXI.” The useof withdrawals from the account is restricted to activities
including Cuban-peso denominated projects related to thedevelopment of Cuba approved by both governments, withthe account’s users making a repayment of the equivalentamount in Japanese yen.

FY2020 Financial Results

At the end of the current fiscal year

About NEXI and
Organizational Operation

Net cash provided by (used in) ﬁnancing activities

2Cash and cash equivalents in the statement of cash
ﬂows comprise cash on hand, deposits that can bewithdrawn at any time, and short-term investmentsthat are readily convertible into cash and bear only
minor risks with respect to ﬂuctuation of value with
their redemption deadline arriving within about threemonths from the acquisition date.

Insurance Products

Proceeds from sales and redemption of securities

1The Statement of Cash Flows to be submitted to the
Minister of Trade, Economy and Industry under theprovisions of Article 20 of the Trade Insurance andInvestment Act is prepared in accordance withaccounting principles generally accepted in Japanand ordinance on terminology, forms, andpreparation methods of ﬁnancial statements.

NEXI Activities

Others

Notes :NEXI Review of Performance（Millions of Yen）

4Amounts are rounded off to the nearest unit.
Annual Report FY73

FY2020 Financial Results

Financial Statements etc.
Details of account items
Balance Sheet
Account item

Details

Receivables subrogatedby paying claims

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

Accrued premiums

Accrued premiums associated with insurance application.

Reinsurance accounts
receivable
Foreign reinsurance
accounts receivable

The accrued portion associated with underwriting insurance with Japanese insurancecompanies.
The accrued portion and portion of advancement payments associated with underwriting
insurance and reinsurance with overseas insurance companies.

Accrued income

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

Outstanding claims
reserves

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

Unearned premiums

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

Contingency reserves

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

Statement of Income

74

Account item

Details

Net premiums written

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

Subrogation income(expenses)

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

Investment income

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

Net claims paid

Claims paid less reinsurance claims collected.

Acquisition of receivables
subrogated by paying claims

Value at the time of recognition of acquiring receivables subrogated by paying claims(excluding transferred claims).

Commissions

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

Gain on government grants

Grants received, related to matters including debt forgiveness deemed necessary to fulﬁll
international obligations under Article 36 of the Trade and Investment Insurance Act.

Annual Report FY

NEXI ANNUAL REPORT 2020

Head Office

Chiyoda First Building, East Wing 5th Floor, 3-8-1
Nishikanda, Chiyoda-ku, Tokyo 101-8359, Japan

Phone : +81-(0)3-3512-7650 Fax : +81-(0)3-3512-7660
https : //www.nexi.go.jp
Inquiries

Corporate Policy and Data Management Group
Planning and Policy Department

Phone : +81-(0)3-3512-7555 Fax : +81-(0)3-3512-7688
E-mail : info@nexi.go.jp

Nippon Export and Investment Insurance

Nippon Export and Investment Insurance