ANNUAL REPORT

2022

Nippon Export and Investment InsuranceCorporate Philosophy
As the public entity responsible for trade insurance,
our mission is to deliver peace of mind to ourcustomers and contribute to the healthy developmentof Japanese overseas business.

2

Annual Report FY2022

Action Guideline

Be alert to changes and meet customer needs withprofessionalism and specialized expertise.
Enhance underwriting capacity and capability while
maintaining a strong risk management culture.
Respect diversity and work as a team to allow ourorganization to achieve its best.

3

Message from the Chairman and CEO
to advance the following three pillars of business activities:
increasing the number of trade and investment insurance users,
enhancing the trade and investment insurance system, andstrengthening international cooperation.

Nippon Export andInvestment Insurance
Chairman and CEO

Atsuo Kuroda
As we publish this annual report, I would like to take thisopportunity to express my sincere gratitude to all of you foryour patronage and extensive support of Nippon Export andInvestment Insurance ( NEXI ).
In FY2022, the global economy gradually saw signs ofrecovery coming out of the COVID-19 pandemic. Meanwhile,
the world was exposed to various risks, including the prolonged
war that began with the Russian invasion of Ukraine in February2022, soaring prices of natural resources and energy, and food,rising interest rates in Europe and the United States, turmoil
in the financial markets, and worsening debt problems in thedeveloping countries, which left us in a turbulence that had
magnified.
The importance of preparing against these risks in internationaltransactions of Japanese companies, such as foreign trade,investment, and overseas loan, has further heightened and wefeel that expectations for NEXI’s trade and investment insurance
as a means of mitigating risks are rising once again. In FY2022,
the amount of insurance underwritten by NEXI totaled JPY 7.6
trillion, recording the highest amount since it became a special
stock company in 2017. In particular, underwritten amount ofOverseas Investment Insurance which covers losses arising fromrisks such as war, civil war, sanction, pandemic, and natural
disaster, amounted to JPY 871 billion, the largest since NEXI’s
founding in 2001 and 1.5 times higher than the previous year.
While paying claims related to the Ukraine War in a flexible andresponsive manner, NEXI worked persistently with customers
in negotiating with their debtors to collect past paid claims,
achieving to recover JPY 55.7 billion in FY2022, nearly 3 times
the amount compared to the preceding year.
Globalization, where people, goods, and money move freely
across national borders in the post-Cold War world that has
become more intricately connected, is facing the need for a
critical readjustment with concerns on recurrence of the Cold
War. While many experts advocate the end of globalization andreshoring in manufacturing, it will be essential for Japanesecompanies, having limited market and resources, to continue
developing their business bases globally. The issue is where toplace the axis of global management, and the key here is theshift from prioritizing efficiency to considering resiliency, or adual perspective of “just in time” and “just in case.” In preparing
for “just in case,” NEXI is fully committed to bolster Japanesecompanies via trade and investment insurance, allowing themto improve resiliency in their global supply chains and to explore
and gain business opportunities abroad. NEXI continues

4

Annual Report FY2022

With regard to increasing the number of trade and investment
insurance users, the number of new users grew to 970
companies in FY2022, marking the highest level in NEXI’s
history. However, the ratio of users to the number of Japanesecompanies engaged in foreign transactions is still extremely
limited. We acknowledge that our biggest challenge lies inraising NEXI’s low profile, and our ongoing efforts include
increasing the number of insurance users especially of small andmedium sized companies and those in agricultural, forestry andfishery businesses. To that end we are reinforcing collaboration
with regional financial institutions, private non-life insurancecompanies, local governments and public institutions, as well
as working to promote NEXI’s trade and investment insurance
through holding press conferences by NEXI’s Chairman and
CEO and hosting webinars on a regular basis, and leveraging
SNS. We are also implementing new initiatives eagerly to
improve customer usability. Specifically, introducing online
application for all insurance types, collaborating trilaterally with
the Japan Finance Corporation and the Organization for Small& Medium Enterprises and Regional Innovation, Japan ( SME
SUPPORT JAPAN ), and launching fronting insurance in Dubai.
In relation to our goal of enhancing the trade and investment
insurance system, the Trade and Investment Insurance Act wasrevised for the first time in seven years and came into effectin July 2022. In line with the revision, NEXI has been working
to better address force majeure risks and supply chain risks,
to reform system with respect to reinforcing cooperation withinternational organizations, including its capital investmentin the African Trade Insurance Agency ( ATI ), and to develop
new products. Furthermore, we are proceeding to organize
systems based on customer feedback. The effort includes
improving usability by simplifying and increasing flexibility of theprocedures for Overseas Investment Insurance, establishing the
JOLCO ( Japanese Operating Lease with Call Option ) scheme,
participating in the Platform for unified support for startups ( Plus ),and expanding assistance through the LEAD Initiative.
In pursuit of strengthening international cooperation, NEXI
signed MOUs with the African Export-Import Bank and ATI
respectively at TICAD 8 held in August 2022, as in-person
international conferences reopened with the pandemic being
under control, to enhance support to Japanese companies
for their business expansion in Africa. To develop projects
through the LEAD Initiative and to promote co-insurance andreinsurance, NEXI has been engaging in discussions with anumber of government agencies and companies, including
those in Indonesia, Cambodia, Saudi Arabia, South Africa,
Kenya, Thailand, and Greece, and has concluded MOUs withmany of them. We are also continuing talks with export credit
agencies of the G7 countries on strengthening assistance to
Ukraine.
As the only public provider of trade and investment insurancein Japan, NEXI is committed to fulfill its mission with a dedicatedcustomer-first approach. We would like to extend our deep
appreciation for your continued understanding and support.

C on tent s
2

Corporate Philosophy & Action Guideline

4

Message from the Chairman and CEO

6

Opening Article

6

1. Response to Russia’s Invasion of Ukraine

8

2. Strengthening cooperation and support for Africa

1012

3. Promotion of the LEAD Initiative
TOPICS Response to DX in trade transactions

14

TOPICS Response to the COVID-19 Pandemic ( FY2020 - 2022 )15

NEXI Review of Performance

16

Performance Highlights

22

Review of Performance

26

TOPICS Organization for Economic Co-operation and Development ( OECD )27

NEXI Activities

28

Main International Activities

30

Strengthening Cooperation with Overseas Organizations

33

Working Toward a Sustainable Society

34

Cooperation with Overseas Organizations

36

Supporting Japanese SMEs in their Overseas Business Development

38

Projects Covered by NEXI Insurance

41

SME Exports Covered by NEXI Insurance

47

Figures in this Annual Report
In principle, figures in this report are rounded to thenearest unit. Therefore, the sum of individual figures may
deviate from the sum presented. Figures that fall below aunit as a result of rounding are indicated as “0”; if there isno corresponding figure, “‒” is indicated. Figures in the
trade and investment insurance business are on a fiscal
period basis unless otherwise noted.

Insurance Products

48

Trade and Investment Insurance – How It Works

49

Insurance Products to Support Your Business

56

Insurance Application Process

60

TOPICS Revision of the Trade andInvestment Insurance Act

61

About NEXI and
Organizational Operation

62

Profile of NEXI

64

Business Plan

66

Business Operation and Management System

70

Organization Chart

71

Offices

72

TOPICS Publicity Activities for
Trade and Investment Insurance

73

FY2022 Financial Results

74

FY2022 Financial Review

75

Financial Statements etc.

5Opening Article 1

Response to Russia’s Invasion
Russia launched an invasion of Ukraine on February 24, 2022. In the midst of various movements, suchas a Ukrainian counter-attack, global sanctions against Russia, and Russian backlash against the sanctions,
NEXI has continued to provide attentive customer support by responding to numerous inquiries on tradeinsurance from those engaged in export to or investment and finance in Russia and Ukraine. Furthermore,in addition to a prompt payment of insurance claims for insured events, NEXI has continued underwriting
insurance and working on cooperation in recovery assistance for Ukraine.

Establishment of a support desk
On February 25, 2022, NEXI established a support desk to respond to inquiries and consultations from customers
regarding insurance contracts, insurance events, and recoveries by telephone and e-mail. By the end of FY2022, there
were over 240 inquiries asking questions, such as “Is the export suspended due to the war in Ukraine covered?” and “Is thepayment irrecoverable due to the sanctions covered?”
For trade insurance customers, NEXI is continuing to provide support through the following measures for insurance
procedures, etc.

Measures for customers

1

Extension of the time for trade insurance procedures

2

Refund of unearned premiums in the case of
discontinuation of shipping3

Suspension of insureds’ obligations related toinsured events and recovery activities

4

6

Annual Report FY2022

Payment of insurance claims

of Ukraine
Payment of insurance claims
NEXI has quickly made assessment and smoothly paid claims for insured events that occurred due to the Russia’s invasionof Ukraine and the subsequent developments, such as global sanctions on Russia. Examples for which claims were paid
are the loss due to the suspension of business as a result of Russian bombings to a warehouse in Ukraine, the case wherecollection of export payments became impossible because importers in Ukraine evacuated due to the Russia’s invasion, theincreased costs incurred related to a ship that was unable to pass through the Black Sea and forced to enter another port
than the designated one, the case where payment by a Russian aircraft leasing company became impossible, and the casewhere export was banned because the goods were included in sanction items after the insurance contract was signed.
Of the claims paid in FY2022, approximately JPY 8.15 billion were for Russia and JPY 140 million for Ukraine.

Continued underwriting of insurance for transactions with Ukraine
Even after the invasion of Ukraine, NEXI continues to provide insurance to Japanese companies that maintain businesswith Ukraine. With their voices about the difficulty making judgments on insurance for transactions with Ukraine, NEXI
responds to inquiries through the support desk in a careful and case-by-case manner. The underwriting of insurance fortransactions with the Donetsk People’s Republic and the Luhansk People’s Republic is determined based on the Japanese
government policy stated in the statement by the Minister for Foreign Affairs.

Support for the reconstruction of Ukraine
Based on the G7 Leaders’ Statement on Support for Ukraine, NEXI issued a joint statement on assistance to Ukrainewith the official export credit agencies (ECAs) of G7 Countries (Canada, France, Germany, Italy, Japan, the United Kingdom,
and the United States of America) on January 22, 2023. In this statement, we expressed “our ongoing support for Ukraine
and for its reconstruction efforts and our unwavering solidarity with the Ukrainian people as long as it takes.” Additionally, as
ECAs of the G7, we expressed our specific intentions, such as to continue bilateral and multilateral dialog on the supportand investment needed to rebuild Ukraine in a way that best suits its needs, and to promote trade with Ukraine through the
deployment of our tools in the finance and insurance sectors, etc.

As for Russia’s prolonged invasion of Ukraine, NEXI will continue these efforts and respond to movements
toward reconstruction in Ukraine in a timely manner.

7

Opening Article 2

Strengthening cooperation and
NEXI’s support for Africa
Due to Africa’s abundance of natural resources, including oil and natural gases, and large and youthful population, the “last frontier,” asit has come to be referred to, has become a place of interest for international business. While Japanese companies set in Africa have also
been engaged in various efforts, it is hard to deny the unfortunate reality of having fallen behind when compared to the momentum that
Europe has created through deep geographical and historical relationships and the strength that China has rapidly developed in recent
years. Furthermore, geopolitical risk and credit risk are also large matters which Japanese companies would encounter through transactions
with Africa. Given these circumstances, NEXI has been strongly supporting
the expansion of Japanese companies in Africa through trade insurance as an〈 Underwritten Amount for Africa 〉
effective risk hedging tool.
（ Hundred million of Yen ）8,000
So far, NEXI has provided insurance to many export and investment
7,000
projects in the region.
6,000
In particular, as a part of the LEAD Initiative, which will be mentioned in the
5,000
Opening Article 3, NEXI has recently been expanding the wings of insurance
4,000
support in areas, such as the COVID-19 vaccine procurement, Samurai bond
3,000
issuance, and wind power generation. The cumulative underwritten amount for
2,000
Africa from 2001, when NEXI was founded, to FY2022 was approximately JPY
1,000
10.3 trillion, and the outstanding insurance commitment was JPY 1.4 trillion as
0of the end of FY2022.
2020
2021
2022
（ FY ）

Cooperation with African ECAs and development agencies, etc. in recent years
NEXI has also sought to strengthen cooperation with export credit agencies ( ECAs ) and development agencies in Africa, in the hopethat they will act as a pilot when Japanese companies expand into the region. Specifically, taking opportunities such as TICAD＊, NEXI hassigned many memoranda of understanding ( MOUs ) with African ECAs, etc. and held workshops in Japan based on the MOUs with invited
participants from each party. The workshop attendees have played a key role in establishing the Japan Desk in their respective agencies,
which is a consultation desk set for the purpose of increasing investment and financing in Africa by Japanese businesses, and there havealready been a substantial number of inquiries from Japanese companies.

Date

Details

August 2019

Participated in TICAD7 and held side events
Signed an MOU with the Islamic Development Bank ( IsDB )Signed an MOU with the Islamic Corporation for the Insurance of Investment and Export Credit ( ICIEC )Signed an MOU with the African Trade Insurance Agency ( ATI )February 2020

Held workshops for development agencies and ECAs mainly in the African region

November 2020

Launched a Japanese website for the ATI Japan Desk

December 2021

Signed an MOU with the Eastern and Southern African Trade and Development Bank ( TDB )Participated in the Second Japan-Africa Public-Private Economic Forum ( in a thematic session )Established a consultation desk for Japanese companies ( Japan Desk ) in African financial institutions

May 2022

Participated in the Second Japan-Africa Public-Private Economic Forum ( in the plenary meeting )August 2022

Participated in TICAD8 and held side events
Signed an MOU with the African Export-Import Bank ( Afreximbank )＊ TICAD is an acronym for the Tokyo International Conference on African Development, an international conference aimed at African development. It has been
led by the Japanese government since 1993 and co-hosted by the United Nations, United Nations Development Program ( UNDP ), World Bank, and African
Union Commission ( AUC ).

8

Annual Report FY2022

support for Africa
Initiatives in FY2022
NEXI participated in the 8th Tokyo International Conference on African Development (TICAD8) held in Tunisia on August 27–28, 2022.
On the sidelines of TICAD8, NEXI implemented the initiatives below.

1. Investment in ATI in line with the revised Act and MOU with ATI
The African Trade Insurance Agency (ATI), headquartered in Nairobi, Kenya, is an international financial institution established in 2001 to
expand private investment in Africa, with the support of the World Bank.
Under the Trade and Investment Insurance Act revised in 2022 to strengthen international cooperation, investment in foreign corporations
that conduct insurance business similar to trade insurance was added to NEXI’s operations. This has enabled NEXI to make investment ininternational financial institutions in Africa, boosting the entry of Japanese companies into the region.
In order to swiftly implement this measure, NEXI signed an MOU on August 25, 2022 with ATI, which has extensive experience insupporting projects in Africa and has a strong network of governments and government agencies. Based on the MOU stipulating thecooperation of both parties on procedures for an investment in ATI, NEXI successfully made an investment in June 2023 through various
procedures.
NEXI will further advance the promotion of export to and investment and financing in Africa by Japanese companies, by evenstrengthening cooperation with ATI and having them serve as a pilot in the region.

2. MOU with Afreximbank
Afreximbank is a pan-African multilateral financial institution with 52 African member states. The bank offers trade financing that
contributes to the trade business and the establishment of supply chains in and outside of Africa, and provides its member countries withfinancial assistance and industrialization support.
NEXI signed an MOU on August 25, 2022 to promote trade with and investment in Africa by Japanese companies and to encourage theexchange of views on the development of decarbonization technologies, energy transition, and quality infrastructure in Africa.

Key elements of the MOU with Afreximbank(1) Financial cooperation to support trade with and investment in Africa by Japanese companies(2) Cooperation to promote intra-African trade through the African Continental Free Trade Area ( AfCFTA )(3) Exchange of information on potential projects and economic, financial, political, and industrial trends in Africa(4) Exchange of views on the possibility of collaboration to promote the development of decarbonization technologies, energy transition,and quality infrastructure in Africa(5) Human resources development and strengthening of relationships through the dispatch of staff, workshops, seminars, etc.
(6) Sharing of knowledge on technologies and solutions that contribute to the expansion of trade

3. Official side events
On the sidelines of TICAD8, NEXI co-hosted online webinars with ATI and
Afreximbank, respectively.
The webinars were held under the themes of “Catalyzing Japanese
investments in African business andAfrican green growth” and “Afrexim-NEXI
partnership bolstering Africa’s crises
recovery and Energy transition.” They
were broadcast to Japanese companies
operating not only in Africa and Tokyo but
in other regions as well, and were watchedby 600 viewers.

9Opening Article 3

Promotion of the LEAD Initiative
The LEAD Initiative, which was established in December 2020, is in line with the policy set forth in the Infrastructure
System Overseas Promotion Strategy 2025 advanced by the Japanese government. The initiative was introduced asa financial support measure to contribute to increasing industrial competitiveness in areas, such as global warming
countermeasures and digital technology; promoting international cooperation with foreign governments and corporate
partners; solving social issues; and achieving the SDGs.
In selecting projects NEXI actively evaluates the diversification of private funding sources, including institutional
investor funds, through the so-called fund-bond scheme.

Under the LEAD Initiative, NEXI aims to underwrite insurance with a cumulative total value of JPY 1 trillion by
FY2025. NEXI provided insurance for nine projects of a total value of JPY 420 billion at the end of FY2022. The list of
projects underwritten through the LEAD Initiative is as follows.
＊ PATIMFA is a facility to support African countries affected by the spread of COVID-19.

10

No.

Publication

Country

1

December 2020

AfricaFinancing for Afreximbank ( PATIMFA program＊ )2January 2021

Palau

Undersea fiber optic cable export project3

March 2021

Dubai, UAE

4March 2022

AfricaFinancing for Afreximbank ( COVID-19 vaccine and healthcare finance facility )5

April 2022

Egypt

Samurai bond project for the Egyptian Ministry of Finance

6June 2022

KuwaitLoan insurance for Kuwait Petroleum Corporation ( KPC )7

December 2022

Egypt

Amunet wind power project

8

March 2023

Egypt

Gulf of Suez 2 wind power project9

March 2023

BrazilPellet feed plant construction project by CSN Mineracao

Annual Report FY2022

Project details

Waste-to-energy projectEstablishment of the SEED scheme
In May 2023, NEXI established the Support to Expand Emerging Deals ( SEED ) scheme to create and expand
emerging deals between Japanese and foreign companies.
The SEED scheme aims to promote new collaboration between foreign companies and Japanese companies, andis expected to become a “seed” for future foreign transactions. In other words, in providing insurance, NEXI sets a
condition where foreign companies seeking financial assistance should create and expand transactions with Japanesecompanies, including start-ups. Specifically, one of the requirements being considered is that the overseas companies
should set up business meetings with or provide bidding opportunities to Japanese companies. NEXI seeks to further
promote the LEAD Initiative through the scheme.
Moreover, under the SEED scheme, NEXI will identify high-potential overseas startups and pursue opportunities
to build collaboration between them and Japanese companies, in addition to promoting the matching of Japanesecompanies with major foreign companies using NEXI’s insurance.

11

TOPICS

Response to DX in trade transactions
With global trade transactions being digitized as a whole, NEXI promotes what is known as DX in
trade transactions, while pursuing digitization in its operations.

1

What is DX in trade transactions?

Trade transaction procedures involve a huge amount of documents that are exchanged among many
relevant parties. Although there have long been efforts to digitize the documents, it has yet to become acommon practice. However, following increasing attention to DX around the world, the trading business isalso experiencing a progress in the field on a global scale. This is because by digitizing not only documents
but also the entire procedure, the industry can expect benefits from DX in various aspects, such as storage
and visualization of related data, significant reduction of processing time, and cost reduction.
This movement is making great progress with the digitization of the three major flows of commerce,
logistics, and money, and with the emergence of the platforms ( PFs ) specialized in each flow or of the PFs
that connect the respective PFs. On the other hand, DX in the trade business, which is expected todramatically increase transactions, may result in the increase or fluctuation of risks. To hedge the risks,
NEXI is working to build a system to provide trade insurance in a timely manner, while responding tochanges due to DX.

2

URDTT of the International Chamber of Commerce

The International Chamber of Commerce ( ICC ), which establishes rules
regarded as international standards in trade transactions, such as the Incoterms,
Uniform Customs and Practice for Documentary Credits, and Uniform Rules forCollections, created the Uniform Rules for Digital Trade Transactions ( URDTT ) on
October 1, 2021. The URDTT stipulates rules that should be typically applied tothe transaction process, provided that the buyer and the seller agree to use
electronic records ( i.e., digital trade transactions ) to prove the existence of thecontract or to generate the buyer’ s payment obligations. It also does not requirecredit enhancement measures on settlement such as L/C, and even allows not
only banks but also financial service providers to provide credit enhancement
measures. Since these are the international rules that can serve as the basis fortransactions conducted on the trade PF, NEXI was among the first to pay
attention to these rules and has followed them.

12

Annual Report FY2022

3

NEXI’s response

In response to these changes in the world, NEXI is engaged in the following activities.

( 1 ) Coordination with TradeWaltz
The trade and investment environment of various countries has been severely affected by the significant
changes caused by events, such as the Russian invasion of Ukraine and COVID-19 pandemic. It is a major
challenge for companies operating overseas to prepare for “country risk,” a risk of incurring losses due tochanges in political, economic, and social conditions in a particular country or region.
In a world where trade transactions are digitized, it is imperative that such information be collected more
quickly than ever. In these circumstances, NEXI has published the country risk information on a trading
platform TradeWaltz as a partner since January 2023. TradeWaltz users are able to access the publishedinformation at any time: the “Country Category and Underwriting Policy,” which lists the risk categories andtrade insurance underwriting policies for eachcountry and region, the data classified byevaluation based on information on economic,
fiscal, and debt repayment status of each country,
etc., and the “Country Review,” which reports
country risk-related information.
NEXI also participates in the Consortium for
Improving the Efficiency and Expansion of Trade
Information Linkage ( Trade Consortium ) , forwhich TradeWaltz Inc. serves as its secretariat,
Country risk information: “Country Category and Underwriting
and actively discusses the digitization of the flows
Policy” and “Country Review” was added as a TradeWaltz
partner service.
of commerce, logistics, and money with many
companies.

( 2 ) Participation in related projects of the Ministry of Economy, Trade and Industry
NEXI participated as an observer in the Study Group on the Digitalization of Trade Sector in FY2021,
which was set up by the Ministry of Economy, Trade and Industry ( METI ) to summarize matters that public
and private sectors should work together toward the digitization of trade. Additionally, in FY2022, NEXI
participated as an observer in the Working Group on Trade Sector Data Linkage and the Trade Finance
Task Force, which were established by METI with public and private sectors to address the specific issues
identified in the previous year: the development of a cross-sectional use environment for data standard
specifications and the establishment of a system for management and dissemination of the environment.
Furthermore, NEXI actively gathers information by attending the expert meetings of the International
Union of Credit and Investment Insurers ( Berne Union ) on digitization and by exchanging opinions on DX
with ECAs from other countries.

In the age of digitization of global trade, NEXI, which has been working with import and export
companies over the years, will promote DX to assist Japanese companies in supporting theirinternational transactions.

13

TOPICS

Response to the COVID-19 Pandemic ( FY2020 - 2022 )NEXI’s response● March 2020: Extension of the time for trade insurance procedures and establishment of a support deskIn response to the Japanese government’s basic policy on countermeasures against COVID-19 announced on
February 25, 2020, NEXI extended the time for trade insurance procedures and established a support desk on March
2, 2020. Additionally, NEXI improved the support desk’s flexibility to address customers’ situations, such as working
from home and refraining from going to work.
● From March 2020 onward: Announcement of the Three Basic Policies and the Continued Efforts for

Three New Responses

NEXI has made continued efforts to provide customer services based on the Three Basic Policies and theContinued Efforts for Three New Responses as below. In particular, of Three New Responses, “1. Support for
procurement of working capital by Japanese overseas subsidiaries” continued until March 31, 2023 and exceeded
JPY 500 billion in total value.

Three Basic Policies
1. NEXI’s export insurance, investment insurance and loan insurance include COVID-19 related losses within thescope of coverage.
2. NEXI takes new risks in supply chain.
3. NEXI offers insurance for both new applications and existing investment projects in countries worldwide, even in
the face of the COVID-19 pandemic.

Continued Efforts for Three New Responses
1. Support for procurement of working capital by Japanese overseas subsidiaries
2. Reinforcing assistance for import of medical supplies
3. Support for export by Japanese overseas subsidiaries to third countries● April 2022: Simplification of procedures

In order to address changes in customers’ circumstances due to increased remote work, NEXI introduced anelectronic application system on its web service that allowed customers to submit various application forms related toinsurance procedures online in PDF format, etc. This eliminates the need for seals on the application forms for three
types of insurance: Buyer’s Credit Insurance, Overseas Untied Loan Insurance, and Overseas Investment Insurance.
● July 2022: Revision of the Trade and Investment Insurance Act

As a result of the revision of the Trade and Investment Insurance Act for the first time in seven years, new measures
for the COVID-19 pandemic were included. For example, for losses due to failure to ship goods, a delay in theperformance of payment obligations in prior transactions with the counterparty was added to commercial risk events.
● December 2022: Enhancement of electronic application system

NEXI increased the number of insurance types available with simplified procedures through the electronic
application system introduced in April 2022. Electronic applications have become possible for nine insurance
products in line with the revised Act.

Insurance underwriting and claims payment due to the COVID-19 pandemic
The claims paid because of the COVID-19 pandemic was approximately JPY 7.7 billion in FY2020, JPY 46.2 billion in
FY2021, and JPY 5.4 billion in FY2022. In particular, looking at the results of FY2021, the total claims payment
amounted to JPY 61.2 billion, the second largest since FY2001 when NEXI was founded, 75% of which was due to thepandemic.
Based on the experience of tackling the COVID-19 crisis, NEXI will continue to support Japanese companies throughtrade insurance for infectious disease threats and work together with its customers to prevent losses.

14

Annual Report FY2022

NEXI Review
of Performance
Performance Highlights

16

Review of Performance

22

TOPICS

26

15

NEXI Review of Performance

Performance Highlights
FY2022 Export Trends
Japan’s exports in FY2022 were approximately JPY 99.2 trillion, an increase of approximately 13.4 trillion ( up 15.5% year on year )due to an increase in exports of motor vehicles and mineral fuels. This marked a record high for the last five years.
Looking at the results by country and region, exports to Asia were approximately JPY 55.2 trillion ( up 10.9% year on year ), of which
China accounted for approximately JPY 18.5 trillion ( up 1.3% year on year ). Exports to the US were approximately JPY 18.7 trillion ( up21.3% year on year ). Exports to the EU were approximately JPY 9.6 trillion ( up 20.9% year on year ). Exports to the Middle East wereapproximately JPY 3.0 trillion ( up 44.4% year on year ).

Japan’s exports

Reference

Total Exports( Millions of Yen )FY2018FY2019FY2020

FY2021

FY202280,709,887

75,878,792

69,485,419

85,877,665

99,226,191

1.9

△ 6.0

△ 8.4

23.6

15.5

Year-on-Year Change ( % )( Source: Trade Statistics of Japan, Ministry of Finance )Trade 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
−500

Premium income

Recoveries andother income

Insurance claims
paid

Borrowings−600
Peak of Outstanding
Borrowings
JPY 688.6 billion−700( Billions of Yen )Fiscal Year ’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 ’20 ’21 ’22
Premium 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 30.7 31.9
incomeRecoveries and 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 19.6 55.7
other income
Insurance
claims paid 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 57.1 23.1 61.2 32.3
Borrowings

ー

ー

ー

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

ー

ー

ー

ー

ー

ー

ー

ー

ー

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

16

Annual Report FY2022

ー

ー

ー

ー

ー

ー

ー

ー

ー

ー

ー

ー

ー

ー

ー

( Billions of Yen )Annual Report FY2022

Amount of Insurance Underwritten
Trends in Underwritten Amount by Insurance Typeagainst the backdrop of an increase of total exports of Japan. As for underwritten amount for loan insurance, Overseas Untied Loan
Insurance was approximately JPY 0.3 trillion ( down 28.7% year on year ), and Buyer’s Credit Insurance was approximately JPY 48.4

NEXI Review of
Performance

Amount of insurance underwritten in FY2022 was approximately JPY 7.6 trillion ( up 9.8% year on year ), the highest since NEXI’s
incorporation in 2017, due to an increase in Export Credit Insurance accounting for approximately JPY 6.0 trillion ( up 5.8% year on
year ) and a significant increase in Overseas Investment Insurance accounting for approximately JPY 0.9 trillion ( up 49.9% year on year )billion ( up 2632.4% year on year ).
( FY )

0.0
5.0

2018

0.2

0.7

0.3

0.2
0.6

0.4

5.9
0.2

0.0
3.9

2020

NEXI Activities

4.5

2019

6.3

0.2

1.4

0.6

6.1
0.0
0.6

5.7

2021

0.4

0.3

6.9

0.0
6.0

2022
1

0

0.9

2

4

3

5

0.3

0.4

7.6

7

6

8

Export Credit
Insurance

Buyer’s Credit
Insurance

Overseas Investment
Insurance

Overseas Untied Loan
Insurance

Insurance Products( Trillions of Yen )OthersOthers : 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.

Underwritten Amount by Region( FY )

1.3

2021

44.9

18.1

2022

49.3

11.6

9.4

5.8

6.6

0.1

6.4

7.4

1.0

0

20

40

8.2

7.2

8.0

60

6.8

1.9

6.1

80

100

About NEXI and
Organizational Operation

Asia continued to account for the largest share with 49.3% ( approximately JPY 4.0 trillion ), followed by the Middle East with 11.6%( approximately JPY 0.9 trillion ).

(%)

Middle East

EuropeNorth America

Central America

South America

AfricaOceaniaInternationalorganizations

Top Ten Countries and Regions for Underwritten Amount in FY2022
Rank

Country / Region

Underwritten
AmountComposition

Rank

Country / Region

FY2022 Financial Results

Asia( Millions of Yen )Underwritten
AmountComposition

1

China

774,960

9.5%

6

Taiwan339,713

4.1%

2

Indonesia

660,9618.1%

7

Mexico268,611

3.3%

3

Thailand611,599

7.5%

8Vietnam

252,336

3.1%

4

U.S.A.

555,803

6.8%

9

Saudi Arabia

249,065

3.0%

5South Korea

357,419

4.4%

10

UAE

237,294

2.9%

17

NEXI Review of Performance

Performance Highlights

Outstanding Insurance Commitment
Trends in Outstanding Commitment by Insurance Type
Outstanding insurance commitment in FY2022 was approximately JPY 16.1 trillion ( up 12.5% year on year ), the highest since NEXI’s
incorporation in 2017.

( FY )

7.0

2018

0.9

6.0

2019

0.8

5.3

2020

0.8

1.6

3.6

1.6

3.4

1.7

4.1

0.9

14.0

0.8

12.6

0.9

12.7

0.7
1.5

6.6

2021

4.6

0.9

14.3

0.6
7.4

2022
2

0

1.8

4

Export Credit
Insurance

6

5.3

10

8

12

Overseas Investment
Insurance

Buyer’s Credit
Insurance

1.0

14

16.1

16

Overseas Untied Loan
Insurance( Trillions of Yen )OthersOthers : 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 42.6% ( approximately JPY 7.1 trillion), followed by the Middle East with 17.2% ( approximately
JPY 2.8 trillion).

( FY )

2.6
16.6

46.4

2021

7.7

7.3

5.6

3.0
7.0

3.0
17.2

42.6

2022

0

20

40

7.1

8.0

60

7.0

3.9
2.6

8.8

80

3.8

100
(%)

Asia

18

Middle East

EuropeAnnual Report FY2022

North America

Central America

South America

AfricaOceaniaInternationalorganizations

Annual Report FY2022

Premium Income
Trends in Premium Income
NEXI Review of
Performance

Premium income in FY2022 was approximately JPY 29.9 billion ( down 1.6% year on year ).
( FY )

2018

29.4

2019

42.1

2020

31.9
30.4

2022

29.9

0

5

10

15

20

25

30

35

40

NEXI Activities

2021

45
( Billions of Yen )Premium Income by Insurance TypeBy insurance type, Export Credit Insurance accounted
for the largest share with 48.9% ( approximately

and Overseas Untied Loan Insurance with 16.1%( approximately JPY 4.8 billion ).

Export Credit Insurance
for SMEs and AFF Sector 0.6%

Trade Insurance for Standing Orders
from Specific Buyers 1.3%

Export Bill Insurance 0.3%
Prepayment Import Insurance
0.0%

Reinsurance 8.9%

Insurance Products

JPY 14.6 billion ), followed by Overseas Investment
Insurance with 24.2% ( approximately JPY 7.2 billion )Comprehensive Export Insurancewith Simplified Procedure 1.2%

Overseas Untied Loan
Insurance 16.1%
Export Credit Insurance
48.9%

Overseas Investment Insurance
24.2%

About NEXI and
Organizational Operation

Recoveries
Trends in Recoveries
The amount of recoveries in FY2022 was approximately JPY 55.7 billion (up 184.2% year on year ).
Recoveries of claims associated with political risk events, including those through Paris Club debt rescheduling and bilateral recovery
efforts, accounted for 69.3% (approximately JPY 38.6 billion ). The remaining 30.7% (approximately JPY 17.1 billion ) was associatedwith commercial risk events.
( FY )

31.1

30.1

2019

27.7

2020

17.5

2022

31.2

3.5

20.9

2021

23.5

2.5

19.6

2.2
38.6

0

10

FY2022 Financial Results

1.1

2018

20

55.7

17.1

30

40

50

60
( Billions of Yen )Political Risk
Event

Commercial Risk
Event

19

NEXI Review of Performance

Performance Highlights

Insurance Claims Paid
Trends in Claims Paid
Insurance claims paid in FY2022 were approximately JPY 32.3 billion (down 47.3% year on year ), due to a decrease in claims paid
for political risk events, of which there were previously many, mostly for payments related to the COVID-19 pandemic in 2021.

( FY )

2018

6.9

33.5

26.6

2019

36.6

2020

4.1

23.1

19.0

2021

36.5

2022

57.1

20.5

7.4

61.2

24.7

32.3

24.8

0

10

20

30

40

50

60
( Billions of Yen )Political Risk
Event

Commercial Risk
Event

Claims Paid by Region in FY2022
Europe accounted for the largest share with 33.5% ( approximately JPY 10.8 billion ).

Overall

Political Risk Event

Commercial Risk Event

Asia 4.3%

Middle East 4.6% North America 0.0%

Middle East 5.9%

Africa 6.2%

Central America
0.2%North America
0.0%South America 0.5%
Europe9.8%

Middle East 0.3%
North America
0.0%Africa 8.1%
Asia
8.3%

Europe
33.5%

Asia
21.4%

CentralAmerica
15.8%
SouthAmerica
31.5%

Europe40.6%

SouthAmerica40.8%＊ There were no claims paid related tocommercial risk events in Oceania.

20

Annual Report FY2022

Central America
68.0%＊ T here were no claims paid related topolitical risk events in Africa and Oceania.

Annual Report FY2022

Insured Events in FY2022

Insured events amounted to approximately JPY 162.5 billion in reported insured losses in FY2022. Compared withFY2021, both political and commercial risk events increased substantially.
The total amount of claims paid was approximately JPY 32.3 billion. In political risk events, claims were mainly paid
for insured events related to the Russian invasion of Ukraine that began in February 2022. In commercial risk events,
claims were paid for, among other things, insured events related to large-scale projects covered by Overseas Untied
Loan Insurance and Buyer’s Credit Insurance.

NEXI Review of
Performance

Insured Events by Risk Type in FY2022( Millions of Yen )FY2020Year-on-Year
Change ( % )27,92643,54055.9%

87,367

118,94736.1%

162,487

40.9%

36,541

7,441△ 79.6%

24,69924,8190.5%

61,241

32,260△ 47.3%

Type of Risk

FY2021

Occurrence ofEventsPolitical Risk

50,553

Commercial Risk

54,169

Total

104,721

115,293

Political Risk

4,071

Claims Paid

Commercial Risk

19,005

Total

23,076NEXI Activities

FY2022Category＊ In certain cases, debts are fully paid after submission of notification of occurrence of losses. This results in claims either not being made at all or
being made in the following fiscal year. For this reason, the amount presented in occurrence of events does not directly correspond to the amountfor claims paid.
＊ Occurrence of events and claims paid related to reinsurance are recorded under commercial risk.

Political Risk Events( FY )( Millions of Yen )( FY )

4,071

2020

50,55336,541

2021
7,441

10,00020,00030,00040,000Claims Paid

24,69987,367
24,81950,00060,000118,947

0

20,00040,00060,00080,000100,000 120,000 140,000

Claims Paid

Occurrence of Events

Occurrence of Events

Occurrence of Events by Region
In FY2022, approximately 59% of political risk events occurred in Asia and the Middle East, which were affected byforeign currency shortages, and the remainder took place in Africa and Europe. Commercial risk events occurred inlarge-scale projects mainly in Europe and South America.

About NEXI and
Organizational Operation

054,1692022

43,540( Millions of Yen )19,0052020
2021

27,9262022

Commercial Risk Events

Insurance Products● Occurrence of Events and Claims Paid ( FY2020-FY2022 )● Occurrence of Events: Amounts by Region ( FY2022 )( Millions of Yen )14,836

16,00070,00014,000( Millions of Yen )63,04860,00010,85050,00010,00030,000

3,946

ia

a

an

ric

ce
O

ica

16

ut

h

Am

er

m
er

266

So

ica
er
Am

tra
Ce
n

rth
No

st

ro
pe
Eu

1,523

ica

357

0

Af

7,528 7,972

lA

10,000

Ea

ia
ce

an

ric
a
O

ica

ica

Am
er

er

h

m

ut

lA
ra
nt

Ce

So

er
ica

e
ro
p

Am

No
rth

Eu

st

M

id

dl

e

Ea

As
ia

0

0

ia

182

3

Af

2,000

20,000

As

4,000

dl
e

6,000

38,23740,000

7,004

6,719

id

8,000

M

12,000Commercial Risk Events

FY2022 Financial Results

Political Risk Events

21

NEXI Review of Performance

Review of Performance
Amount of Insurance Underwritten
Underwritten Amount by Insurance TypeType of Insurance( Millions of Yen )FY2018FY2019FY2020

FY2021

FY2022Composition

Year-on-Year
Change (%)

Export Credit Insurance

5,030,034

4,526,832

3,859,827

5,661,939

5,991,044

78.5

5.8

One year or less

2,908,306

2,810,763

2,052,303

3,204,812

3,542,182

46.4

10.5

More than one year

2,121,728

1,716,069

1,807,525

2,457,126

2,448,862

32.1

△ 0.3

Trade Insurance for Standing
Orders from Specific Buyers

7,443

10,907

15,11821,726

12,8660.2△ 40.8

Export Credit Insurance for SMEs
and AFF Sector

9,812

13,656

14,562

16,02917,0370.2

6.3

Comprehensive Export Insurancewith Simplified Procedure

58,024

51,20755,545

105,888

136,724

1.8

29.1

Export Bill Insurance

13,023

12,358

8,865

8,787

9,178

0.1

4.4

214

2,844

9,935

671

61

0.0

△ 90.9Overseas Investment Insurance

712,045

601,782

622,834

581,101

871,008

11.4

49.9

Buyer’s Credit Insurance

37,083

197,823

36,565

1,771

48,3980.6

2632.4

Overseas Untied Loan Insurance

342,565

422,132

1,378,107

373,852

266,7313.5△ 28.7

Reinsurance

86,21962,313

142,271

176,033

274,103

3.6

55.7

6,296,462

5,901,854

6,143,627

6,947,796

7,627,149

100.0

9.8

Prepayment Import Insurance

Total

(%)

( Note 1 ) The total amount is calculated based on the insurance policy issue date, by applying the exchange rate on the insurance policy contract date;and using the actual underwritten amount, not the insured amount of the foreign currency denominated insurance contract. ( The same applies tothe table below. )( Note 2 ) In Export Credit Insurance, capital goods are classified into transactions with more than one year. ( The same applies hereinafter. )( Note 3 ) The floating interest coverage case is calculated based on the interest rate at the time of the conclusion of the contract. ( The same applies to thetable below. )Underwritten Amount by Region
RegionAsia( Millions of Yen )Composition

Year-on-Year
Change (%)

4,043,460

49.3

21.5

FY2018FY2019FY2020

FY2021

FY2022

3,517,050

3,422,851

2,949,704

3,327,232(%)

Middle East

661,380

500,303566,818

1,338,381

947,214

11.6△ 29.2Europe638,012780,216

683,404

695,279

673,420

8.2

△ 3.1

North America

274,361

245,916

645,106

431,140

590,071

7.2

36.9

Central America

647,942538,946

411,231486,433

653,889

8.0

34.4

South America

442,875

345,257

454,955

545,579

553,392

6.8

1.4

Africa304,254355,564

685,523

476,971496,613

6.1

4.1

Oceania

81,52772,86453,872

95,32384,8221.0△ 11.0International organizations

134,460

16,221

71,842

9,296

155,230

1.9

1569.9(Note 1 ) Classification used to compute the above amount: Pre-shipment: Country of the shipment consignee; Post-shipment: Country of the payer (whenguaranteed, country or international organization of the guarantor ).
(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 an international organization.
(Note 4 ) Central Asia is included in Asia. (The same applies hereinafter. )(Note 5 ) Central and Eastern Europe and Russia are included in Europe. (The same applies hereinafter. )22

Annual Report FY2022

Annual Report FY2022

Outstanding Insurance CommitmentOutstanding Commitment by Insurance Type7,374,188

45.8

11.9

2,479,405

3,023,350

18.8

21.9

3,352,745

4,113,478

4,350,838

27.0

5.8

13,211

19,077

27,20524,993

0.2

△ 8.1

3,817

4,491

4,893

5,214

5,675

0.0

8.8

Comprehensive Export Insurancewith Simplified Procedure

16,415

10,874

19,202

32,13845,101

0.3

40.3

Export Bill Insurance

3,224

3,831

2,536

1,657

1,576

0.0

△ 4.9

208

2,298

9,796

698

－

－

－

1,596,806

1,602,810

1,697,292

1,472,327

1,824,912

11.3

23.9

923,657

831,832

778,010

747,130

604,7203.8△ 19.1

3,608,086

3,365,701

4,084,100

4,607,015

5,304,975

32.9

15.1

830,151

783,808

831,042825,080

917,613

5.7

11.2

13,988,179

12,587,322

12,724,503

14,311,346

16,103,751

100.0

12.5

FY2019FY2020

FY2021

FY2022

Export Credit Insurance

6,994,430

5,968,467

5,278,555

6,592,883

One year or less

2,417,727

2,291,738

1,925,810

More than one year

4,576,703

3,676,729

Trade Insurance for Standing
Orders from Specific Buyers

11,383

Export Credit Insurance for SMEs
and AFF Sector

Prepayment Import Insurance
Overseas Investment Insurance
Buyer’s Credit Insurance
Overseas Untied Loan Insurance
Reinsurance
Total

(%)

Insurance Products

Year-on-Year
Change (%)

FY2018NEXI Activities

Composition

Type of Insurance

NEXI Review of
Performance( Millions of Yen )( Note 1 ) In principle, the foreign currency denominated insurance contract is calculated based on the exchange rate at the end of each fiscal year. ( Thesame 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. )RegionFY2018FY2019( Millions of Yen )FY2020

FY2021

FY2022Composition(%)

Year-on-Year
Change (%)

6,926,035

6,463,037

6,241,627

6,822,605

7,058,523

42.6

3.5

1,945,372

1,673,822

1,551,671

2,442,646

2,847,065

17.2

16.6

Europe930,638

885,666

1,047,275

1,134,007

1,171,324

7.1

3.3

North America

984,054886,348

1,076,438

1,068,567

1,331,857

8.0

24.6

Central America

653,945444,834

324,080

375,349

492,650

3.0

31.3

South America

685,649

565,177

734,267

827,249

1,156,092

7.0

39.8

Africa952,503911,884

1,081,938

1,031,503

1,449,628

8.8

40.5

Oceania

624,052

520,348

426,080

436,098

423,539

2.6

△ 2.9

International organizations

868,089

787,432

727,950

575,017627,0103.8

9.0

FY2022 Financial Results

Asia
Middle East

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 ( whenguaranteed, country or international organization of the guarantor ).
( 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 an international organization.

23

NEXI Review of Performance

Review of Performance

Premium IncomePremium Income by Insurance TypeType of Insurance

FY2018( Millions of Yen )FY2019FY2020

FY2021

FY2022Composition

Year-on-Year
Change (%)(%)

12,032

9,932

9,955

13,23014,64648.9

10.7

Trade Insurance for Standing
Orders from Specific Buyers

259

433

572

705

375

1.3

△ 46.8

Export Credit Insurance for SMEs
and AFF Sector

84

125

134

149

168

0.6

13.0

Comprehensive Export Insurancewith Simplified Procedure

127

102

134

253

367

1.2

44.7

Export Bill Insurance

130

130

124

100

94

0.3

△ 5.8

3

17

126

1

0

0.0

△ 84.0

6,188

6,454

6,516

6,295

7,237

24.2

15.0

Export Credit Insurance

Prepayment Import Insurance
Overseas Investment Insurance
Buyer’s Credit Insurance

1,424

9,009

1,696

△ 2,641

△ 444

△ 1.5

△ 83.2

Overseas Untied Loan Insurance

7,018

15,227

9,546

10,717

4,834

16.1

△ 54.9

Reinsurance
Total

2,098

697

3,048

1,635

2,664

8.9

62.9

29,362

42,12731,85230,44429,942

100.0

△ 1.6

( Note 1 ) The premium income is recorded at the start of the insurer’s obligation period, unlike the underwritten amount which is based on the policy issue
date. Therefore, the premium income and underwritten amount may be recorded in different fiscal years.
( Note 2 ) In and after FY2021, premiums are presented as net premiums written ( direct premiums written and inward reinsurance premiums written, etc.
from which outward reinsurance premiums, etc. are deducted. )Insurance Claims Paid
Claims Paid by Insurance Type and Risk TypeType of Insurance
Export Credit Insurance( Millions of Yen )FY2018FY2019FY2020

FY2021

Political Commercial
Risk
Risk

Political Commercial
Risk
Risk

Political Commercial
Risk
Risk

Political Commercial
Risk
Risk

18,082 2,175 15,907 43,996 36,344 7,652 2,831

FY2022
Political Commercial Composition Year-on-Year
(%)
Risk
Risk
Change (%)

104 2,727 1,217

523

694 2,925

9.1

140.4

67

－

67

32

－

32

65

4

61

0.2

102.5

150

180

－

180

6

－

6

81

21

60

0.3 1,317.7

－

6

－

－

－

－

－

－

42

－

42

0.1

35

－

35

84

－

84

22

－

－

－

－

－

－

－

149

－

22

－

－

－

－ △ 100.0

149

－

－

－

－

234

234

－ 1,797 1,797－ 33,830 33,830－ △ 100.0－ 1,438 1,438

－

4.5

－

117

－

117 2,287 2,170△ 95.7

117 7,091 2,188 4,903 7,002 5,059 1,943

21.7

△ 1.3

－ 7,184

22.3

△ 8.2

－ 13,522

41.9

22.2

33,497 6,923 26,573 57,052 36,578 20,474 23,076 4,071 19,005 61,241 36,541 24,699 32,260 7,441 24,819 100.0△ 47.3

Trade Insurance for Standing Orders
from Specific Buyers

－

－

－

－

－

－

Export Credit Insurance for SMEs and
AFF Sector

78

－

78

150

－

Comprehensive Export Insurance with
Simplified Procedure

－

－

－

6

Export Bill Insurance

10

－

10

Prepayment Import Insurance

－

－

－

Overseas Investment Insurance

2,941 2,941

Buyer’s Credit Insurance

1,807 1,807

Overseas Untied Loan Insurance

9,253－ 9,253 11,760－ 11,760 11,724－ 11,724 7,824－ 7,824 7,184

Reinsurance

1,325－ 1,325－－ 4,106 11,069－ 11,069 13,522

Total

755

755 4,106918 2,007

Claims Paid by Region
RegionFY2019FY2020

FY2021

Political Commercial
Risk
Risk

Political Commercial
Risk
Risk

Political Commercial
Risk
Risk

Political Commercial
Risk
Risk

－ 12,477 6,154

12,477

Middle East

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

Europe

1,115

Central America

235

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

73 3,614 6,025

208 5,817 2,663 1,593 1,071

8.3

62

77

174

109

△ 55.832 1,493

21 1,471

4.6 1,268.3

726 10,079

1 1,11443－

43 1,403

2 1,401 3,045－ 3,045 10,805

33.5

254.8

71

116

75

32

43

0

27

11

11

－

3

1

0.0

△ 62.240－

40 4,114 4,053

61 1,978 1,466

511

584

227

357 5,106 5,059

11,090 1,807 9,283 11,841

Africa2,941 2,941－
Total

32 6,121 3,687

FY2022

187

South America
Oceania24( Millions of Yen )FY2018

Asia

North America

－

－

27

－ 11,841 13,544

297 13,246 14,843 4,302 10,541 10,176

－

106

－

106 2,198 2,170

－

371

202

169

4

4

－

28 36,620 31,717 4,903 2,014
4

4

－

4

－

46

15.8

774.2

38 10,138

31.5△ 31.4－ 2,0146.2△ 94.5－－ △ 100.0－

33,497 6,923 26,573 57,052 36,578 20,474 23,076 4,071 19,005 61,241 36,541 24,699 32,260 7,441 24,819 100.0

Annual Report FY2022△ 47.3

Annual Report FY2022

Recoveries
Recoveries by Risk TypeFY2018FY2019FY2020

FY2021

FY2022Composition

Year-on-Year
Change (%)(%)

Political Risk

30,06827,73020,926

17,454

38,627

69.3

121.3

Commercial Risk

1,052

3,467

2,533

2,153

17,095

30.7

694.1

Total

31,121

31,19723,45819,60755,722

100.0

184.2

Recoveries by Region( Millions of Yen )FY2018FY2019FY2020

FY2021

FY2022Composition

Year-on-Year
Change (%)

(%)

2,368

3,628

3,845

2,853

1,143

2.1

△ 59.911,461

11,93016,897

11,731

34,105

61.2

190.7

Europe

683

771

835

924

7,736

13.9

737.4

North America

81

33

471

15

8

0.0

△ 43.5Central America

1,701

38

9

306

2

0.0

△ 99.3

South America

14,193

14,211

880

3,736

2,091

3.8

△ 44.0Africa

629

586

517

38

10,63519.1

27956.9

Oceania

4

－

3

4

1

0.0

△ 72.4

31,121

31,19723,45819,60755,722

100.0

184.2

Total

Recoveries by Risk Type
Recoveries totaled approximately JPY 55.7 billion in FY2022 ( up 184.2% from JPY 19.6 billion in FY2021 ).
Looking at the results by risk type, recoveries related to political risk events, including those through Paris Clubdebt rescheduling and bilateral negotiations, amounted to about JPY 38.6 billion ( up 121.3% ). Recoveries related tocommercial risk events amounted to about JPY 17.1 billion ( up 694.1% ).

Recoveries by Region

About NEXI and
Organizational Operation

Recoveries in FY2022

Insurance Products

Asia
Middle East

NEXI Activities

RegionNEXI Review of
Performance

Type of Risk

( Millions of Yen )FY2022 Financial Results

By region, the Middle East accounted for 61.2% of total recoveries at approximately JPY 34.1 billion. This includes
about JPY 8.6 billion from the Republic of Iraq ( Paris Club recoveries ).
Africa accounted for 19.1% at approximately JPY 10.6 billion. Recoveries from the Arab Republic of Egypt
amounted to approximately JPY 8.6 billion ( commercial risk-related recoveries ), while those from the Republic ofUganda amounted to approximately JPY 1 billion ( political risk-related recoveries ).
Europe accounted for 13.9% at approximately JPY 7.7 billion. Recoveries from the Russian Federation amounted
to approximately JPY 6.6 billion ( commercial risk-related recoveries ), while those from the Republic of Serbia
amounted to approximately JPY 800 million ( Paris Club recoveries ).
Recoveries from South America amounted to approximately JPY 2.1 billion, including about JPY 1.2 billion fromthe Argentine Republic ( political risk-related recoveries ) and about JPY 900 million from Republic of Chile ( commercial
risk-related recoveries ). Meanwhile, those from Asia amounted to approximately JPY 1.1 billion, including about JPY
500 million from the People’s Republic of China ( commercial risk-related recoveries ) and about JPY 300 million fromthe Islamic Republic of Pakistan ( Paris Club recoveries ).
Recoveries from North America and Central America amounted to approximately JPY 10 million ( commercial riskrelated recoveries ).

25

TOPICS

1

Organization for Economic Co-operation
and Development ( OECD )Working Party on Export Credits and Credit Guarantees（ECG Meeting and Participants Meeting）

The OECD was established in 1961 to discuss various global economic issues, and Japan has been a member sinceApril 1964. The Working Party on Export Credits and Credit Guarantees ( ECG ), a subordinate organization of theOECD Trade Committee, exchanges information and discusses issues related to official export credits, including tradeinsurance provided by NEXI. As a Japanese export credit agency ( ECA ), NEXI actively participates in the discussions incooperation with concerned Japanese 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, andsustainable lending.

2

Arrangement on Officially Supported Export Credits

The financial terms and conditions for export credits are set out in the OECD’s Arrangement on Officially Supported
Export Credits to provide a framework for the orderly use of export credits 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 credits. In addition to the
Arrangement, sector-specific terms reflecting the characteristics of each sector may be applied to projects related tosuch as ships, nuclear power plants, civil aircraft, renewable energy, climate change mitigation and adaptation
technologies, and water. NEXI provides export credits in line with the Arrangement.

3

Approaches to Environmental Issues

Since the formulation of the OECD Recommendation of the Council on Common Approaches for Officially Supported
Export Credits and Environmental and Social Due Diligence ( the Common Approaches ) in 2001, revisions haveregularly been made to improve the Common Approaches, including the fourth revision made in April 2016. Based on
the Common Approaches, NEXI has established the Guidelines on Environmental and Social Considerations in Trade
Insurance to encourage the appropriate environmental and social considerations for projects covered by its insurance.

4

Anti-bribery Measures

Based on the OECD Anti-Bribery Convention adopted in 1997, which prohibits provision of money or anything ofvalue to foreign public officials for unjust enrichment, and OECD Recommendation of the Council on Bribery and
Officially Supported Export Credits in 2006, NEXI has taken appropriate measures against bribery. The
Recommendation was revised in March 2019, and NEXI has since strengthened its efforts based on the revisions.

26

Annual Report FY2022

NEXI Activities
Main International Activities
Strengthening Cooperation with
Overseas Organizations
Working Toward a Sustainable Society
Cooperation with
Overseas Organizations
Supporting Japanese SMEs in theirOverseas Business Development
Projects Covered by NEXI Insurance
SME Exports Coveredby NEXI Insurance

28
30
33
34
36
38
41

27

NEXI Activities

Main International Activities
Participation in the Asia Green Growth Partnership Ministerial Meeting ( AGGPM )NEXI participated in the Asia Green Growth Partnership Ministerial
Meeting (AGGPM), which was hosted by the Ministry of Economy,
Trade and Industry (METI) on September 26, 2022 in Tokyo.
The AGGPM was held to have an in-depth discussion on
the importance of balancing energy transition and achieving
sustainable economic growth, climate change measures, andenergy security, against the backdrop of a drastic change in the
global energy situation.
In the second part of the meeting, Private Sector Round Table,
NEXI’s Chairman and CEO Atsuo Kuroda gave a speech on

NEXI’s following three initiatives in supporting energy transitions.

1. Financial support to Asian countries propelling energy
transitions toward decarbonization.
2. Financial support to the Middle East and other energy
producing countries.
3. E nhancement of partnerships with international
financial institutions.
NEXI will continue to facilitate energy transitions in Asia andthe world.

Participation in the Platform for Unified Support for Startups ( Plus )In November 2022, NEXI joined the Platform for unified

Since joining Plus, NEXI has been carrying out activities tosupport for startups ( known as Plus, established by nine
Japanese governmental institutions in July 2020 ), which aims

support startups, introducing NEXI’s initiatives to member

to support startups that are working to commercialize their

Collaboration for Encouraging Startups to Expand Business
Overseas hosted by Keidanren ( Japan Business Federation ).

technologies. Seven other institutions, including Japan Bank28

institutions and attending the Conference on Public-Private

for International Cooperation, Japan Finance Corporation,

Being part of the Plus enables NEXI to exchange information

and Development Bank of Japan Inc. have joined the platform

and work closely with other institutions that bolster startups,

along with NEXI, reinforcing assistance for startups by public

while providing further assistance including financing support via

institutions.

NEXI’s trade insurance to startups seeking global development.

Annual Report FY2022

Annual Report FY2022

Conclusion of MOU on Cooperation with the Japan Organization for Metals andEnergy Security ( JOGMEC )and as part of the effort, revised its systems in March 2023, to
add hydrogen and ammonia to the scope of Investment andnew technology fields such as hydrogen and CCS.

Loan Insurance for Natural Resources and Energy.
Leveraging their knowledge and human resources, NEXI and

JOGMEC is a governmental institution for resource and

JOGMEC are to collaborate and cooperate on data collectionenergy development. In November 2022, support for risk capitaland risk assessment in new technology fields of hydrogen andof projects related to production and storage of decarbonized

CCS. The effort is anticipated to encourage project development

fuels, including hydrogen and ammonia, and carbon dioxide
capture and storage ( CCS ) was added to its scope of operation.

by Japanese companies in the fields of new technologies

NEXI Review of
Performance

In March 2023, NEXI signed a Memorandum of Understanding
with the Japan Organization for Metals and Energy Security( JOGMEC ) for the purpose of collaboration and cooperation inincluding hydrogen and CCS.
NEXI Activities

NEXI is also strengthening support for decarbonization projects,

Insurance Products

Photo provided by JOGMEC ( From left: Atsuo Kuroda, Chairman and CEO of
NEXI, and Tetsuhiro Hosono, former Chairman and CEO of JOGMEC )Reference

NEXI added “Hydrogen and Ammonia” to “Natural Resources and Energy,” to which a special clause regarding
Investment and Loan Insurance for Natural Resources and Energy applies, and also clarified that “Natural Resources
and Energy” include the products made from the eligible natural resources and energy.
This was done to strengthen support for “hydrogen and ammonia businesses,” which are expected to supply
power in the future, as part of the responses to the decarbonization policy.

About NEXI and
Organizational Operation

Expansion of Investment and Loan Insurance for Natural Resources and Energy

FY2022 Financial Results

29

NEXI Activities

Strengthening Cooperation with Overseas Organizations
Conclusion of MOU Concerning Cooperation with PT PLN ( Persero ) ( PLN ),a State-owned Electricity Company of Indonesia
NEXI concluded a Memorandum of Understanding (MOU)

in Indonesia, and to support efforts toward decarbonization

Concerning Cooperation with PT PLN (Persero) (PLN), a

in the country. The reinforced relationship between PLN andstate-owned electricity company in the Republic of Indonesia

NEXI encourages Japanese companies to further expand their(Indonesia) in April 2022. Same year in November, NEXI agreed

businesses in Indonesia.

to provide up to USD 500 million to support PLN for theirdecarbonization efforts in Indonesia and the opportunity tointroduce the technologies developed by Japanese companies
to PLN. In March 2023, during the Asia Zero Emission
Community (AZEC) Ministerial Meeting, the MOU was amended
to review the loan terms and conditions for the USD 200 million
out of the total USD 500 million financial support.
The signing and the amendment of the MOU is in line with the
LEAD Initiative, aiming to build a framework for dialogue between
NEXI and PLN, to strengthen cooperation in the power sector

Photo provided by the Ministry of Economy, Trade and Industry

Conclusion of Reinsurance Agreement Between NEXI and the Swedish Export
Credit Agency ( EKN )NEXI concluded a One-Stop-Shop Reinsurance Agreementwith the Swedish Export Credit Agency ( EKN ) in May 2022.

solving social issues, including decarbonization. NEXI intends

The agreement’s main emphasis is on reciprocal reinsurance

through trade and investment insurance.

to facilitate industrial cooperation between Japan and Sweden

for medium and long-term projects. The reinsurance framework
enables NEXI and EKN to collaborate in providing a morecomprehensive support to Japanese and Swedish companies.
The Kingdom of Sweden ( Sweden ) is home to many
companies with advanced technologies, and EKN supports theglobal development of those Swedish enterprises. NEXI andEKN have been collaborating in projects, and the agreement
aims to deepen partnership between the two institutions throughthe use of reinsurance to assist projects that contribute toConclusion of Addendum to an MOU on Cooperation withExport-Import Bank of Thailand
NEXI signed an Addendum to February 2020 Memorandumof Understanding on Cooperation ( MOU ) with the Export-Import
Bank of Thailand ( EXIM Thailand ), an export credit agency of
the Kingdom of Thailand ( Thailand ), in December 2022.
The main purpose of the MOU is to further facilitate tradeand investment of the two countries based on the existing
cooperation framework between EXIM Thailand and NEXI indeveloping collaborative projects. The signing of the MOU is
anticipated to effectively support Japanese companies basedin Thailand for their exports and investments to third countries,
under the partnership of the two institutions.
NEXI continues to support Japanese companies in their

30

Annual Report FY2022

exploring of international markets by building a close relationshipwith export credit agencies around the world.

Annual Report FY2022

Conclusion of MOU on Cooperation with Export Credit Greece
developments through reinforcing cooperation with foreignexport credit agencies.

agency of the Hellenic Republic ( Greece ), in January 2023.
The MOU aims to establish a framework of cooperation
between ECG and NEXI in facilitating trade and investment
between the two countries, and exchanging information that are

NEXI Review of
Performance

NEXI signed a Memorandum of Understanding on Cooperation( MOU ) with Export Credit Greece ( ECG ) , an export credit

conducive to respective activities of the two institutions. The MOU
is one of those signed during the Greek Prime Minister’s visit toJapan, and is expected to promote trade and investment and tostrengthen economic relations between Japan and Greece.
NEXI Activities

NEXI continues to bolster Japanese businesses for their global

Conclusion of MOU Concerning Cooperation with the Ministry of Mines andEnergy of Cambodia
companies expand their businesses by introducing theirtechnologies to MME and exchanging views on potential projects

Insurance Products

NEXI signed a Memorandum of Understanding Concerning
Cooperation (MOU) with the Ministry of Mines and Energy(MME) of the Kingdom of Cambodia ( Cambodia ) in Marchwith MME in which Japanese enterprises can participate.

2023. In Cambodia, demand for power is expected to increase
due to its rapid economic growth, and to address the risingneeds, a number of infrastructure development projects havebeen planned, mainly in the power sector. Also, with the global
acceleration of climate control, efforts to achieve carbon neutrality
on a long-term basis have become critical in each country.
In line with NEXI’s LEAD Initiative, the MOU aims to build acooperation in improving the domestic power transmission
network of Cambodia, and to support MME in its efforts toachieve a realistic energy transition. NEXI will help JapanesePhoto provided by the Ministry of Economy, Trade and Industry

Hosting a Workshop on New Technologies and Start-up Support

The workshop aimed to share knowledge and experience

FY2022 Financial Results

NEXI hosted a two-day Workshop on New Technologies andStart-up Support on February 8th and 9th, in Tokyo.

About NEXI and
Organizational Operation

framework for dialogue between MME and NEXI, to strengthen

NEXI will continue to assist international business activities ofJapanese enterprises through strengthening cooperation withforeign export credit agencies.

among the ECAs, considering the current challenges infacilitating the social implementation of new technologies,
including those for climate change mitigation, and the increasing
importance of start-ups in tackling social issues in emerging anddeveloping countries. Professionals in charge of underwriting,risk assessment, risk management, and business development
in ECAs from different countries, including ECGC from India,
EFA from Australia, EKN from Sweden, Euler Hermes from
Germany, K-SURE from South Korea, and US EXIM from theUnited States participated in the workshop.

31

NEXI Activities

Strengthening Cooperation with Overseas Organizations
Participation in the G7 ECA Meeting
NEXI participated in the Meeting of the Heads of G7 Export
Credit Agencies where leaders of official export credit agencies
from the G7 nations ( Canada, France, Germany, Italy, Japan,
United Kingdom, and the United States of America ) gatheredin Toronto, Canada from October 27th to 28th, 2022. At themeeting, the global economic situation and the efforts eachcountry is taking from a geopolitical and economic perspective
and in terms of sustainability were discussed. As a new initiative,
an additional meeting was held where the future of the ECA
industry in the world was discussed among mid-career andyoung employees who will be the next generation in charge of
ECA business in each respective country.

Participation in the Berne Union
The Berne Union ( The International Union of Credit andInvestment Insurers ) is a forum for global export insurance

attended both meetings to exchange information with otherparticipating institutions.

agencies, international organizations, and private insurers toshare expert knowledge and discuss 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 endof 2022, there were a total of 85 member institutions ( including
guests ) . The Berne Union meets twice a year at their two
General Meetings in spring and autumn to exchange ideas andhave discussions, and also holds sessions including expert
meetings and webinars as needed. In FY2022, the Spring
Meeting was held in May in Istanbul, Turkey, and the Annual
General Meeting was held in November in Kigali, Rwanda. NEXI

Photo of the Annual General Meeting

Holding of Bilateral Meetings
In FY2022, NEXI held bilateral meetings with export credit
agencies ( ECAs ) and government officials from the Republic ofAustria (Austria), the Federal Republic of Germany ( Germany ),the French Republic ( France ), and the People’s Republic ofChina ( China ) . NEXI exchanged frank opinions concerninga wide range of topics, including response to and businessconditions during and after the COVID-19 crisis, climate change
mitigation measures, and risk management initiatives.
These meetings that are held annually allow NEXI to review
the global trends of trade and investment insurance, and further
strengthen partnership with other foreign institutions.

32

Annual Report FY2022

Photo of the bilateral meeting with Austria

Annual Report FY2022

Working Toward a Sustainable Society
Guidelines on Environmental and Social Considerations
latter half of the fiscal year, performed on-site inspections
required for Category A projects for the first time after theon Environmental and Social Considerations in Trade Insurance( Environmental Guidelines ) and its complementary paper

pandemic.

of Guidelines for Information Disclosure Considerations for

has implemented procedures to accept objections, assigning an

Nuclear Sector Projects in Trade Insurance to assess whether

environmental guideline examiner who is independent from ourcompanies implementing projects covered by NEXI’s insurance

insurance underwriting department. NEXI continues to ensure

have adequately given environmental and social considerations.

appropriate assessment of each project.

To ensure compliance with the Environmental Guidelines, NEXI

NEXI Review of
Performance

To fulfill its corporate social responsibility regarding
environmental and social issues, NEXI follows the Guidelines

NEXI revised the Environmental Guidelines last year for the
first time since 2016. Based on the opinions received fromNEXI Activities

stakeholders through public consultation meetings and publiccomments, NEXI updated the content to address changes in thesocial landscape.
In FY2022, NEXI conducted screenings for 44 projects. In
the screenings, projects were classified into three categories( A, B, or C, categorized in descending order of the size ofthe environmental impact ), based on information provided inscreening forms submitted by applicants ( exporters, etc. ) .
Each project was then assessed appropriately according to its

Insurance Products

category. In FY2022, NEXI continued to carry out assessments
flexibly amid the prolonged COVID-19 pandemic, and in the
Photo of an on-site inspection

FY2022 Screenings by Category

FY2022 Screenings by Region

Category A

4％

Middle East

5％

About NEXI and
Organizational Operation

4％

AfricaCategory B

16％

Central &South
America

23％

80％

FY2022 Financial Results

Asia

Category C

Europe/NIS

61％

7％

＊Categorized as A, B, or C in descending order of thesize of the environmental impact of each project＊The Middle East includes Turkey; Central &South America includes Mexico.

33

NEXI Activities

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

1 ) One-Stop-Shop Reinsurance
For cases in which a Japanese company is partnering withforeign companies on a project in a third country, NEXI concludes
one-stop-shop reinsurance agreements with major overseas export
credit agencies ( ECAs ). The purpose of these agreements is tounderwrite risks for the portion exported from Japan. For example,
when a Japanese company forms a consortium with foreigncompanies 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 theJapanese company.

ExportJapanese
Company
Reinsurance for the
portion of export by aJapanese company

Consortium agreement
Export Contract

Foreign
ECA

Export credit
insurance for theentire export
contract

Third
Country
Buyer

ForeignCompany
ExportOne-Stop-Shop Reinsurance Agreements
Short-term Reinsurance Agreements
Cooperative Agreements

Europe＊In classifying the countries on the map, the color-code represents two types of agreements forsome countries. For countries that are partners to both one-stop-shop reinsurance agreements
and cooperative agreements, the color code for one-stop-shop reinsurance agreements isused. For countries that are partners to both short-term reinsurance agreements andcooperative agreements, the color code for short-term reinsurance agreements is used.

One-Stop-Shop Reinsurance Agreements
Italy
Netherlands
Belgium
Germany
Austria
Finland
Spain
Switzerland
FranceServizi Assicurativi del Commercio Estero ( SACE )Atradius N.V. ( ATRADIUS )2002

Credendo - Export Credit Agency
Euler Hermes Deutschland AG ( EULER-HERMES )2002

Oesterreichische Kontrollbank AG ( OeKB )Finnvera plc ( FINNVERA )

2003

2002
2003
2004

Compañía Española de Seguros de Crédito a la Exportación ( CESCE ) 2005
Swiss Export Risk Insurance ( SERV )2007
Banque Publique d’Investissement ( Bpifrance )2016

Czech Republic

Export Guarantee and Insurance Corporation ( EGAP )UK

UK Export Finance ( UKEF )2017

Denmark

Danmarks Eksport- og Investeringsfond ( EIFO )Swedish Export Credit Agency ( EKN )2019

Sweden2017

2022

Short-term Reinsurance Agreements
RussiaRussian Agency for Export Credit and Investment Insurance ( EXIAR )2016

Cooperative Agreements
FranceDirection des Relations Économiques Extérieures ( DREE )

1995
2016

UK

Banque Publique d’ Investissement ( Bpifrance )UK Export Finance ( UKEF )1996

Austria

Oesterreichische Kontrollbank AG ( OeKB )

1996

Italy
FinlandServizi Assicurativi del Commercio Estero ( SACE )Finnvera plc ( FINNVERA )1996

Netherlands

Atradius N.V. ( ATRADIUS )

1996

2011
1996

Middle East

Spain

Compañía Española de Seguros de Crédito a la Exportación ( CESCE ) 2000

Cooperative Agreements

Uzbekistan

Uzbekinvest National Export-Import Insurance Company ( UZBEKINVEST ) 2007
The State Export-Import Bank of Ukraine ( UKREXIMBANK )2009

Abu Dhabi
Iraq

UkraineRussiaState Development Corporation ( VEB.RF )2009

BelarusBelarusbank

2009

RussiaRussian Agency for Export Credit and Investment Insurance ( EXIAR )2013

Turkmenistan
Czech Republic

The State Bank for Foreign Economic Affairs of Turkmenistan ( TFEB ) 2015
Export Guarantee and Insurance Corporation ( EGAP )2015

Kazakhstan

KazakhExport

Georgia

Ministry of Economy and Sustainable Development of Georgia
2019
Joint Stock Company Siberian Coal Energy Company ( SUEK JSC ) 2019

Russia34

1995

Euler Hermes Deutschland AG ( EULER-HERMES ) /Coopers & Lybrand, Germany ( C&L )KfW IPEX-Bank ( KfW )Germany

IsraelIran
TurkeySaudi Arabia

2016
KuwaitIsrael Export Insurance Corp. Ltd. ( ASHRA )Mubadala Development Company PJSC ( MDC )2008

Ministry of Finance of Iraq

2011

Trade Bank of Iraq ( TBI )2011

Ministry of Economic Affairs and Finance of the Islamic Republic of Iran
Export Credit Bank of Turkey ( Turk Eximbank )

2016
2017

Ministry of Finance of Saudi Arabia
Public Investment Fund ( PIF )2022

Kuwait Petroleum Corporation ( KPC )2022

Belgium

Credendo - Export Credit Agency

2019

Hungary

Hungarian Export Credit Insurance Plc. ( MEHIB )2019

Azerbaijan

The Republic of Azerbaijan Ministry of Economy

2021

Cooperative Agreements

GreeceExport Credit Greece ( ECG )2023

South Africa

Annual Report FY2022

1997

2020

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

Annual Report FY2022

2 ) Short-term Reinsurance

Reinsurance
agreement4 ) Other Cooperative Relations
NEXI has built long-term relationships through cooperative
agreements with major ECAs that belong to the Berne Union andinternational organizations.

Foreign
ECA

North America

Export credit
insurance
Export, etc.

NEXI Activities

JapaneseaffiliatedCompany

NEXI provides underwriting capacity through short-term
reinsurance agreements with European and US private insurers.

NEXI Review of
Performance

NEXI has concluded reinsurance agreements with ECAs in Asiaand other regions to support exports to third countries by Japanesecompanies located in Asian and other countries. These agreements
increase the underwriting capacity of ECAs in Asia and otherregions. This makes it easier for Japanese companies to mitigate
their international trade risks by using export credit insurance offeredby local ECAs.

3 ) Reinsurance with European and US
Private-sector Insurers

One-Stop-Shop Reinsurance Agreements

Buyer

CanadaExport Development Canada ( EDC )

2018

US

Export-Import Bank of the United States ( US EXIMBANK )2019

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

Cooperative Agreements

US

The United States Department of Energy ( DOE )2009

U.S. International Development Finance Corporation ( USDFC )2017

Insurance Products

Export-Import Bank of the United States ( US EXIMBANK )Export Development Canada ( EDC )1991

CanadaUS

1997

South America
Cooperative Agreements
BrazilAsia / Oceania

2008
2008

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

Australia

Export Finance Australia ( EFA )

2005

Korea

Korea Trade Insurance Corporation ( K-SURE )Export-Import Bank of Thailand ( EXIM Thailand )

2019

2011

Short-term Reinsurance Agreements
ECICS Limited ( ECICS )2004

Malaysia

2006

Indonesia

Export-Import Bank of Malaysia Berhad ( MEXIM )PT. Asuransi Asei Indonesia ( Asuransi Asei )ThailandExport-Import Bank of Thailand ( EXIM Thailand )2009

TaiwanTaiwan’s Export-Import Bank of the Republic of China ( Taiwan EXIM ) 2010
Hong Kong Export Credit Insurance Corporation ( HKECIC )2012

Hong Kong

2009

Cooperative Agreements
Korea
Singapore

Korea Trade Insurance Corporation ( K-SURE )ECICS Limited ( ECICS )Reinsurance Agreements with European and US Private-sector Insurers
Euler Hermes Deutschland AG ( EULER-HERMES ) ( private sector )COFACE ( private sector)

2013

American International Group, Inc. ( AIG )Tokio Marine HCC ( HCC )2015

Mitsui Sumitomo Insurance Company Limited ( Europe ) / MS Amlin

2019

Credendo-Ingosstrakh Credit Insurance, LLC

2019

2014
2016

1994
1997

International Organizations

VietnamTaiwan’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
2014

Indonesia

Ministry of Finance of Vietnam
PT Pertamina ( Persero ) ( Pertamina )PT PLN ( Persero ) ( PLN )2022

Islamic Development Bank ( IsDB )African Trade Insurance Agency ( ATI )

2019

China

China Export & Credit Insurance Corporation ( SINOSURE )2018

International Finance Corporation ( IFC )

2020

India

ECGC Ltd. ( ECGC )2018

Australia

2020

2018

The Eastern and Southern African Trade & Development Bank ( TDB )2021

Thailand

Department of Foreign Affairs and Trade ( DFAT ) /Export Finance Australia ( EFA )Export-Import Bank of Thailand ( EXIM Thailand )European Bank for Reconstruction and Development ( EBRD )Multilateral Investment Guarantee Agency ( MIGA )

2020

2021

Cambodia

Ministry of Mines and Energy ( MME )2023

The Islamic Corporation for the Insurance of Investment and Export Credit ( ICIEC )African Export-Import Bank ( Afreximbank )TaiwanIndonesia

FY2022 Financial Results

Singapore

About NEXI and
Organizational Operation

One-Stop-Shop Reinsurance Agreements

ThailandCompanhia Vale do Rio Doce ( Vale )Petróleo Brasileiro S.A. ( PETROBRAS )2015

Cooperative Agreements
Export credit agencies and export financing institutions of APEC members (15 organizations in 12 countries) 1997
European Investment Bank ( EIB )
2018
2019

2020

2022

35

NEXI Activities

Supporting Japanese SMEs in their Overseas Business Development
Establishment of Overseas Business Support Package
in Collaboration with Three Agencies
On December 19, 2022, NEXI, the Japan Finance Corporation(JFC), and Organization for Small & Medium Enterprises andRegional Innovation, JAPAN (SME Support Japan) announced
the establishment of Overseas Business Support Package(the Package) aiming to reinforce support for SMEs and microbusinesses that are exploring global markets.
Under the Package, the three agencies have come together toleverage their strengths to provide seamless supports to SMEs
and micro businesses seeking to explore foreign buyers andglobal markets, by identifying their issues and needs, assisting
to find international business partners, and providing financial
support. The initiative is in line with the 10,000 New Exporters
Program announced by the Ministry of Economy, Trade andIndustry on December 16, 2022.

Based on the
Package, NEXI not
only covers transaction
risks through tradeand investment
insurance, but alsooffers assistance infinding and selecting foreign customers by providing buyer
information by country and by industry.
The Package is to be enhanced with the participation ofregional financial institutions from throughout the country.
Through collaboration with JFC and SME Support Japan,
NEXI firmly supports SMEs and micro businesses in theirendeavor for international development.

Signing of an MOU with the Okinawa Prefecture
Foreign Trade Association
On March 12, 2023, NEXI signed a Memorandum ofUnderstanding (MOU) on business cooperation with the
Okinawa Prefecture Foreign Trade Association to promote theuse of trade and investment insurance to companies in Okinawa
Prefecture. The MOU signed with the Okinawa Prefecture
Foreign Trade Association is the first among other private
trade support organizations in Japan, including local tradeassociations. Mr. Yasutoshi Nishimura, Minister of Economy,
Trade and Industry, attended the signing ceremony, which
provided a valuable opportunity for the government and NEXI to
make a strong appeal to enterprises in Okinawa Prefecture on
their collaborative efforts to facilitate exports.
Business cooperation with the Okinawa Prefecture Foreign
Trade Association is expected to incorporate promotional
activities, such as briefings on trade and investment insurance
and offering information including overseas buyer ratings andcountry risks to the member companies.

Before the signingof the MOU, a lecture
meeting was hosted
by the Okinawa
Prefecture Foreign
Trade A s s o c i a t i o n
and attended by anumber of companies, where Mr. Kuroda, Chairman and CEO
of NEXI gave a presentation on the theme of “The need for risk
hedging and trade insurance in a turbulent world” to illustrate therole of trade and investment insurance during the COVID-19
pandemic and the Ukraine crisis.
Through business cooperation with the Okinawa Prefecture
Foreign Trade Association, NEXI continues to support Okinawa
for its trade revitalization, export expansion, and economic
growth by facilitating the use of trade and investment insurance
by enterprises in Okinawa Prefecture.

Regional Activities to Raise Profile andUsage of NEXI’ Services
Initiatives in the Tsubame-Sanjo Region in Niigata
Prefecture
NEXI does not just wait to respond to inquiries fromcompanies that are considering using trade insurance. We travel
throughout Japan to visit areas where export companies gather
to offer information on and promote NEXI’s insurance andservices, as well as to collect data and to know the stance of
local companies on export and the associated risks.
In FY2022, we held multiple seminars and consultation
events, and increased the frequency of meetings with
exporting companies in the Tsubame-Sanjo region in
Niigata Prefecture, where a number of metal processing
businesses are based in. The effort was progressed with thecooperation of Japan External Trade Organization ( JETRO )Niigata Trade Information Center, Tsubamesanjo Regional
Industries Promotion Center, and Daishi Hokuetsu Bank, Ltd.

36

Annual Report FY2022

The aim is to allow
NEXI to understandthe ways the local
exporting companies
are addressing
settlement risks( prepayment or deferred payment, risk hedging measures,etc. ) on a local market level according to the companies’
sizes, types of business, and products, which were not
identified in case-by-case private consultations, and to be able
to meet their needs and demands in a more flexible manner.
NEXI will continue to take a proactive approach to the market inorder to provide various assistance corresponding to each exporter’sstage of business development, in cooperation with support
organizations and partner financial institutions that have deep ties
with and knowledge of local communities in each prefecture.

Annual Report FY2022

Supporting Expansion of Agricultural, Forestry, Fishery Products, and Food Export1 ) Relaxing requirements of Comprehensive Export
Insurance with Simplified Procedure for export of
AFF and food products

As part of its increased efforts to demonstrate risks
associated with the exporting of AFF and food products, andtheir countermeasures including the use of NEXI’s insurance
products, NEXI is collaborating with private insurance companies
that have networks with regional agricultural administration
offices and prefectural governments working to promote
exports.

3 ) Participating in trade exhibitions and other events
To promote publicity of trade and investment insurance, NEXI
showcased at and participated in trade exhibitions and otherevents related to exporting AFF and food products, such as the
6th “JAPAN’S FOOD” EXPORT FAIR and GFP Hokkaido Export
Seminar and Business Matching in Sapporo.

NEXI Activities

For exporters of AFF and food products to whom the Ministryof Agriculture, Forestry and Fisheries aims to extend support, therequirements of Comprehensive Export Insurance with Simplified
Procedure have been relaxed to allow easier access to theinsurance. With this insurance, the exporter does not need toapply for each export contract, but instead notify monthly export
results after the shipments that are covered comprehensively
during the contract period.

2 ) Enhancing public relations through collaboration
with private non-life insurance companies

NEXI Review of
Performance

NEXI launched three new initiatives in FY2022 as specificimplementation plans in line with the Action Plan for Facilitating
the Export of Agricultural, Forestry, and Fishery Products, andFood, a government strategy to achieve the target export valueof agricultural, forestry, and fishery (AFF) products and food.

Support Network for Global Operations of Japanese SMEs

Number of New Partnerships by Fiscal Year( currently 110 institutions )FYRegional Banks,etc.
20 banks
6 banks
12 banks
6 institutions
3 institutions

Shinkin Banks( Credit Unions )Total

49 institutions
22 shinkin banks
77 institutions
16 shinkin banks
105 institutions
3 shinkin banks
114 institutions
117 institutions
114 institutions
111 institutions
110 institutions
110 institutions
110 institutions( Decrease due to mergers, etc. )Black font：Regional financial institutions, etc.
Blue font：Shinkin banks
The Akita Bank
Hokuto BankThe Shonai BankThe Yamagata Bank
Daishi Hokuetsu Bank

The Hokuriku Bank
The Bank of Toyama
First Bank of Toyama
The Juroku BankThe Gifu Shinkin BankThe Tono Shinkin Bank

The Hachijuni Bank
Iida Shinkin Bank
Suwa Shinkin Bank
Nagano Shinkin Bank

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

The Hokkoku Bank

The Aomori Bank

The Bank of Iwate
The Tohoku BankThe Shiga Bank
The Bank of Kyoto
The Minato Bank
Amagasaki Shinkin Bank Kyoto Chuo Shinkin Bank
Banshu Shinkin BankThe Chugoku BankThe Tottori Bank
Tomato Bank
Tamashima Shinkin Bank

The Bank of Fukuoka The San-in Godo Bank
Chikuho Bank
The Nishi-Nippon City Bank
Kitakyushu Bank

The 77 BankThe Toho Bank

Yamaguchi Bank

The Bank of Saga
The Juhachi-Shinwa Bank
The Higo Bank
The Kumamoto BankSan ju San Bank
The Kiyo The Nanto BankThe Oita BankBankThe Senshu Ikeda Bank
The Kagoshima BankThe Tokushima Kansai Mirai BankThe Iyo Bank
Kagoshima Sougo Shinkin Bank
Taisho BankThe Osaka City Shinkin BankThe Ehime Bank
The Kita Osaka Shinkin Bank
The Miyazaki BankThe Shikoku Bank The Kagawa Bank
The Hyakujushi Bank

The Bank of Nagoya
The Okazaki Shinkin Bank
Seto Shinkin Bank
Toyohashi Shinkin Bank
The Nishio Shinkin Bank
The Hekikai Shinkin Bank

The Ashikaga BankThe Tochigi Bank
Joyo Bank
Tsukuba Bank

The Musashino Bank
Saitama Resona BankThe Saitamaken Shinkin Bank

Kiraboshi Bank
Shoko Chukin BankThe Chiba Bank
Resona Bank
The Keiyo BankThe Chiba Kogyo Bank National Mutual Insurance Federationof Agricultural Cooperatives
The Bank of Yokohama
National Mutual Insurance Federationof Fishery Cooperatives
The Yamanashi Chuo Bank
The Norinchukin Bank
The Kofu Shinkin Bank
Asahi Shinkin BankThe Johnan Shinkin BankThe Shizuoka Bank
Johoku Shinkin Bank
Enshu Shinkin BankThe Sugamo Shinkin BankThe Seishin Shinkin Bank
Seibu Shinkin Bank
Hamamatsu Iwata Shinkin BankThe Tama Shinkin Bank
Shizuoka Yaizu Shinkin BankThe Tokyo Higashi Shinkin Bank

Support Network for Global Operations of Japanese SMEs As of April 2023

37

FY2022 Financial Results

The Fukui Bank
Fukui Shinkin Bank

Bank of The Ryukyus
The Bank of Okinawa

The Hiroshima Bank
Momiji Bank
The Hiroshima Shinkin Bank

About NEXI and
Organizational Operation

FY2013
FY2014FY2015FY2016FY2017FY2018FY2019FY2020
FY2021
FY2022of 110 institutions including regional banks, shinkin banks, andorganizations in the agriculture, forestry, and fisheries ( AFF ) sector.
NEXI will continue to actively support the global developmentof SMEs and businesses in the AFF sector through further
utilization of the network as well as the Overseas BusinessSupport Package launched in FY2022. To reinforce support,
NEXI is also working to increase the presence of trade andinvestment insurance and to improve its products and services.

Insurance Products

NEXI launched Support Network for Global Operations ofJapanese SMEs in FY2011. The network expands across all
47 prefectures in Japan, and as of April 2023, it is comprised

NEXI Activities

Projects Covered by NEXI Insurance
Federal Democratic Republic of Ethiopia

Telecommunications Business Project

Sumitomo Corporation has launched a telecommunications

opportunities for Japanese companies to serve the Ethiopian

business in the Federal Democratic Republic of Ethiopia ( Ethiopia )through Global Partnership for Ethiopia BV ( GPE ), a joint venture

market with their high-quality communication services.

company established collectively with Vodafone Group Plc( Vodafone ) of UK ( United Kingdom of Great Britain and Northern

the expansion of Japanese companies into Africa, to the

Ireland ), Safaricom Plc in the Republic of Kenya and Vodacom

to the further growth of Ethiopia.

Group Ltd in the Republic of South Africa, both a telecom
operator of Vodafone Group, and British International Investment,a development finance institution of UK ( former CDC Group Plc ).

By supporting this project, NEXI aims to contribute todevelopment of the Ethiopian telecommunications market, andDate of signing the insurance contract: April 2022

In relation to Sumitomo Corporation’s investment in the project,
NEXI has provided reinsurance to the African Trade Insurance
Agency ( ATI ). This is the first project underwritten based on the
Memorandum of Understanding NEXI signed with ATI in 2019.
In Ethiopia, penetration rate of mobile phones has remained
low. However, under the leadership of Prime Minister
Abiy Ahmed, privatization of and foreign investment to thetelecommunications market have been promoted and thecountry is expected to see growth in the widespread use ofmobile phones and the expansion of mobile money business.
In the Infrastructure System Overseas Promotion Strategy 2025
announced by the Japanese government, investment in Quality
ICT Infrastructure is promoted as a specific measure in thetelecommunications field. The project is anticipated to increase

Arab Republic of Egypt

Photo provided by Sumitomo Corporation

Amunet Wind Power Project

The purpose of this project is for Amunet Wind Power
Company S.A.E. ( in which Sumitomo Corporation is an investor )power sources by 2035. This project is in line with that policy, andtherefore is highly significant for the Egyptian government.

to build, own, and operate an onshore wind power plant, andBeing an initiative to conserve the natural environment andsell power generated to the Egyptian Electricity Transmission

combat climate change, the project complies with Environment

Company for 25 years, starting when it goes into commercial& Energy, one of the pioneering elements of the LEAD Initiative

operation. The plant will have a capacity of approximately 500

that NEXI is actively supporting. As such, it is also eligible for

MW, and be located on the Gulf of Suez, in the Ras Gharib regionof the Red Sea Governorate in the Arab Republic of Egypt ( Egypt ),Loan Insurance for Green Innovation.

about 240 km southeast of the nation’s capital, Cairo.

opportunities for Japanese companies in North Africa, andOf the funding the project has raised via project financing,
NEXI has provided insurance for the following: financing( amounting to approximately USD 187 million ) extended byStandard Chartered Bank, Tokyo Branch, Sumitomo Mitsui
Banking Corporation ( SMBC ), and Sumitomo Mitsui Trust Bank,NEXI’s support for this project is expected to expand businesshelp maintain and boost Japan’s international competitiveness,
including in terms of developing renewable energy.

Date of signing the insurance contract: March 2023

Limited; and an interest rate swap agreement guaranteed by
SMBC. The Japan Bank for International Cooperation ( JBIC )and the World Bank Group’s International Finance Corporation( IFC ) have also decided to finance the project.
In 2016, the Egyptian government announced Egypt Vision
2030, a long-term development strategy for the nation. One
of its pillars in the energy sector is to make renewable energy
widespread, and to that end, the Egyptian government intends toactively pursue wind and solar power projects. It is also planning
to increase the share of renewable energy to 42% of the nation’s

38

Annual Report FY2022

Photo provided by Sumitomo Corporation

Annual Report FY2022

Republic of Singapore Support for Exports of Container Ships to Wan Hai Lines (Singapore) Pte Ltd.
of Japan, NEXI will continue to actively support exports ofJapanese companies.

Taiwan-headquartered Wan Hai Lines Ltd. ( WHL ), to financethe purchase of twelve 3,013 TEU container ships built by Japan
Marine United Corporation ( JMU ) and Nihon Shipyard Co.,

Date of signing the insurance contract: September 2022

Ltd ( NSY ). The loans are co-financed by Citibank N.A., Tokyo
Branch ( Citibank ) , Mizuho Bank, Ltd., and Japan Bank for

NEXI Review of
Performance

NEXI has provided insurance for loans to Wan Hai Lines( Singapore ) Pte Ltd. ( WHLS ), the Singaporean subsidiary of theInternational Cooperation ( JBIC ). NEXI’s insurance covers theloans provided by the commercial banks.
WHL group is a major Taiwanese shipping company withNEXI Activities

its main line of business in container transport and has a vast
service network and customer base mainly within the Asian
region, as well as shipping routes in North America, India, andthe Middle East. The company is currently reinforcing its fleet tomeet the increasing demand for container transportation seenin the recent years. NEXI has provided insurance for loans to
WHLS in March 2020, for its purchase of eight container ships
from JMU and NSY, and this is the second project for NEXI to
extend support to the company.

Insurance Products

The project is in line with the Infrastructure System Overseas
Promotion Strategy 2025, which promotes exports ofJapanese built ships. As a policy-based financial institution

Republic of Uzbekistan

Photo provided by Wan Hai Lines (Singapore) Pte Ltd.

Exporting Telecommunications Equipment, etc. to JSC “Uzbektelecom”

This is a project to provide Uzbektelecom with a fund it needs
to build a core telecommunications system by purchasing
equipment, etc. from NEC Corporation ( NEC ), Internet Initiative
Japan Inc. ( IIJ ), and NTT Communications Corporation, with

diplomatic relations in 2022, and the project is expected to help
strengthen them further.

Date of signing the insurance contract: March 2023
( Rendering image of the new facility )Toyota Tsusho Corporation acting as an intermediary. The loan
to Uzbektelecom is co-financed by MUFG Bank, Ltd. ( MUFG )About NEXI and
Organizational Operation

NEXI has provided insurance for a loan to JSC “Uzbektelecom”,
the state-run telecommunications provider in the Republic of
Uzbekistan ( Uzbekistan ).

and the Japan Bank for International Cooperation ( JBIC ), andFY2022 Financial Results

NEXI has provided insurance for MUFG’s contribution.
This is the third time NEXI has supported a project todevelop Uzbekistan’s telecommunications environment throughinsurance underwriting, having also done for one in 2015 ( related
to a nationwide digital TV broadcasting network ) and another in2019 ( related to exporting a core telecommunications system ).
The project aims to boost the speed and capacity of
Uzbekistan’s telecommunications infrastructure. As such, itwill aid the transition to a digital society that its governmentis promoting. Japan and Uzbekistan celebrated 30 years of

Photo provided by Internet Initiative Japan Inc.

39

NEXI Activities

Projects Covered by NEXI Insurance
U.S.

Supporting Exports of Boeing 787s and 777s to KLM Royal Dutch Airlines and Turkish Airlines

NEXI has provided reinsurance for export credit extended byusing export credit to support international joint projects related

the Export-Import Bank of the United States ( US EXIMBANK ),the export credit agency ( ECA ) of the United States, in relation toto the development and manufacturing of these aircraft.

two Boeing 777-300ERs and two Boeing 787-10s for KLM Royalin their international expansion by cooperating with external

Dutch Airlines, and one Boeing 787-9 for Turkish Airlines. This isinstitutions through reinsurance.

NEXI will continue to actively support Japanese companies

an aircraft reinsurance contract based on a reinsurance agreementthat NEXI entered into with US EXIMBANK in 2004, and is NEXI’s
first underwriting of reinsurance from the bank in around six years,

Date of signing the insurance contract:July 2022, October 2022, January 2023

the hiatus being due to the COVID-19 pandemic.
Airlines the world over were severely affected by the travel
restrictions and lockdowns imposed worldwide in the face of the
COVID-19 pandemic that broke out in 2020. With demand now
recovering ( particularly for domestic and short-haul flights ), thenew orders for aircraft from these airlines−which are two of theworld’s top ones−are a sign that the aviation industry is startingto put the pandemic behind it.
Japanese companies have been working as partners with the
US’s Boeing to jointly develop and manufacture the Boeing 777
and 787 airframes, and are producing around 21% and 35% of
the structure, respectively. They are also taking part in the joint
international development of the engines for Boeing 787s, and are
involved in a wide range of the manufacturing as well, including
for the structural materials ( carbon fiber composites ) and aircraft
parts ( tires, lavatories, galleys, cabin service systems, etc. ).
NEXI’s support for the exports of the Boeing 777s and 787s
in cooperation with US EXIMBANK has a significance in terms of

Republic of Turkey

Photo provided by KLM Royal Dutch Airlines, Turkish Airlines

Crane Export Project to Yapi Kredi Finansal Kiralama A.O.

NEXI has provided an insurance for a loan extended to Yapi

As a Japanese governmental financial institution, NEXI

Kredi Finansal Kiralama A.O. ( YKL ) of the Republic of Turkey( Turkey ). This project is intended to finance Yilport Holding

will continue to actively bolster the export of high-quality

A.S. ( Yilport ), a company engaged in port businesses in Turkey

and the decarbonization of industry.

infrastructure equipment manufactured by Japanese companies

and abroad, with the funds necessary to purchase a total offour port container cranes from Mitsui E&S Machinery Co.,
Ltd. ( Mitsui E&S Machinery ) through a finance lease offered byDate of signing the insurance contract: June 2022

YKL. The loan is co-financed by BNP Paribas, Tokyo Branch
and the Japan Bank for International Cooperation ( JBIC ), withNEXI providing insurance for the loan extended by BNP Paribas,
Tokyo Branch.
Yilport, the purchaser of the container cranes in the project,
is a port operator owned by a leading Turkish conglomerate,
Yildirim Holding A.S. Through underwriting of the project, NEXI
was able to offer financing assistance to Mitsui E&S Machinery
for their container crane export, and contributed to raising
the company’s competitiveness as well as to reinforcing its
partnership with Yilport. This is the second project for NEXI to
support Mitsui E&S Machinery’s export of container cranes to
Yilport, following the first project in 2014.
Photo provided by: MITSUI E&S Co., Ltd

40

Annual Report FY2022

Annual Report FY2022

SME Exports Covered by NEXI Insurance
Export of Toys

City, Aichi Prefecture for the export of toys to the Socialist
Republic of Vietnam.

Export value covered by the insurance: About JPY 2 million
Date of signing the insurance contract: July 2022

Since its establishment in 1969, Gincho Trading has beendeveloping and selling products aimed at children to “bring a

NEXI Review of
Performance

NEXI provided Export Credit Insurance for SMEs and AFF
Sector to Gincho Trading Co., Ltd. ( Gincho Trading ) in Nagoya

smile to every child through learning and playing.” Recognizingthat it deals with products that have a direct impact on children,the company is committed to handling safe products. Therefore,
in principle, its products bear the Safety Toy Mark ( ST Mark ),NEXI Activities

which certifies that they have passed the Toys Safety Standard( ST standard ) inspection set by the Japan Toy Association.
For this transaction, Gincho Trading used NEXI’s tradeinsurance as a means to reduce the risk associated withcollecting export proceeds from new buyers.
NEXI will continue to help create an environment in whichsmall and medium-sized enterprises ( SMEs ) and mid-tierenterprises can confidently conduct business overseas by
Photo provided by Gincho Trading Co., Ltd.

providing them with trade insurance.

Insurance Products

Export of Portable Ultrasound Devices
NEXI will continue to actively support the international
expansion of SMEs and mid-tier enterprises, including start-ups,

the export of portable ultrasound devices to the Democratic
Republic of the Congo ( DRC ).

through the provision of trade insurance.

SOIK is a startup that operates a digital health businessExport value covered by the insurance: About JPY 63 million

in Africa by leveraging its local subsidiary in DRC. The
company’s name, SOIK, comes from the French phrase “soinquotidien” ( daily care ). Since being established in 2019, it has

Date of signing the insurance contract: February 2023

been developing digital healthcare solutions with the goal ofcontributing to the SDGs through activities to save lives in DRC.
In 2021, it became the first Japanese company to conclude a

About NEXI and
Organizational Operation

NEXI provided Export Credit Insurance-Specific Insurance
to SOIK Corporation., Ltd. ( SOIK ) in Okinawa Prefecture forpublic-private partnership agreement with DRC’s Ministry of
FY2022 Financial Results

Public Health.
This project includes the delivery of 130 kits of SPAQ, an
integrated solution for digitizing obstetric services developed andprovided by SOIK. The kits will be distributed to small medical
facilities throughout the country, where they will be used to savethe lives of pregnant women and help reduce the high maternalmortality rate which is 100 times higher than in Japan.
This is the first order that SOIK received from the Congolese
government and also the first case associated with DRC’s
Ministry of Public Health where NEXI provided insurance. Tradeinsurance makes it possible to hedge risks due to delays inpayment of export proceeds by buyers, helping start-ups tofocus on business promotion with confidence.

Photo provided by SOIK Corporation., Ltd.

41

NEXI Activities

SME Exports Covered by NEXI Insurance
Export of Used Textile Machinery
NEXI provided Export Credit Insurance for SMEs and AFF
Sector to Tsuji Machinery Co., Ltd. ( Tsuji Machinery ) for its
export to the Republic of India.
Tsuji Machinery was established in 1967 in Fukui City, Fukui

Export value covered by the insurance: About JPY 40 million
Date of signing the insurance contract: December 2022

Prefecture, as an ironworks that mainly offered manufacturingand maintenance services. In addition, the company is currently
expanding the business of exporting used textile machinery tocountries around the globe. It has exported to many countries,
including the Republic of Korea, the Islamic Republic ofPakistan, the Kingdom of Thailand, the People’s Republic ofBangladesh, the Republic of Indonesia, the French Republic, the
Nepal, and the United Mexican States.
Tsuji Machinery uses trade insurance as a means to mitigate
the risk associated with collecting export proceeds as well as tosecure receivables for financing.
NEXI will continue to actively support SMEs and mid-tierenterprises seeking to develop in overseas markets by providingthem with trade insurance.
Photo provided by Tsuji Machinery Co., Ltd.

Export of Liquid Scanner
NEXI provided Export Credit Insurance for SMEs and AFF
Sector to Kumahira Co., Ltd. ( Kumahira ) in Hiroshima Prefecture
for the export of liquid scanner to Romania.
Kumahira was founded in 1898 for the purpose of selling

Export value covered by the insurance: About JPY 2 million
Date of signing the insurance contract: August 2022

and repairing safes. Today, the company develops andmanufactures a wide range of security products that meet theneeds of customers based on its technological capabilities andexpertise, which date back over a century.
Previously, the company conducted thorough risk
management for its export transactions and used low-risk
settlement methods. However, due to the impact of COVID-19,
some of the overseas customers had difficulty placing orders
based on conventional terms and conditions. By using NEXI’s
trade insurance, Kumahira succeeded in reducing the risk
associated with collecting export payments and was able tocontinue trading with settlement terms that satisfied customer
needs.
NEXI will continue to offer trade insurance to address thediverse needs of SMEs and mid-tier enterprises to reduce theirtransaction risks as well as to support their export expansion.
Photo provided by Kumahira Co., Ltd.

42

Annual Report FY2022

Annual Report FY2022

Export of Semiconductor Manufacturing Process Equipment

Prefecture for the export of semiconductor manufacturing
process equipment to the Republic of Singapore.

Export value covered by the insurance: About JPY 22 million
Date of signing the insurance contract: July 2022

Since its establishment in 1987, Technovision has been
engaging in development, manufacturing, and import and export

NEXI Review of
Performance

NEXI provided Export Credit Insurance for SMEs and
AFF Sector to Technovision, Inc. ( Technovision ) in Saitama

of semiconductor manufacturing equipment, with core strengths
in cleaning technology and assembly technology. The company
aims to contribute to the society through product manufacturing
based on its policies to provide technologies, products, andNEXI Activities

services that address customer needs. Introduced by The
Saitamaken Shinkin Bank, Technovision used NEXI’s tradeinsurance to hedge non-payment risks for its transactions withforeign companies.
NEXI will continue to actively support the international
development of mid-tier enterprises and SMEs nationwide,utilizing the Support Network for Global Operations of JapaneseSMEs established in collaboration with shinkin banks andregional financial institutions throughout Japan.

Insurance Products

Photo provided by Technovision, Inc.

Export of Talc Products
NEXI provided Trade Insurance for Standing Orders from

Osaka City, Osaka Prefecture.

Export value covered by the insurance: Annual total of about JPY 40 million
Date of signing the insurance contract: March 2023

Nippon Talc was founded in 1934 as a specialized manufacturerof talc products which are used as fillers for plastics and paints.
The company has been strengthening research development anddeveloping unique manufacturing technologies in accord with its
philosophy “Harmonious coexistence between humankind andnatural resources.” Also with a focus on overseas expansion,

About NEXI and
Organizational Operation

Specific Buyers for the export of talc products to the Kingdom of
Spain by Nippon Talc Co., Ltd. ( Nippon Talc ), in Naniwa Ward,

Nippon Talc processes the talc mined in Pakistan and other
FY2022 Financial Results

countries locally and ships to Europe and other regions throughintermediary trade.
This is a representative case where Nippon Talc used tradeinsurance as a means to mitigate the risks of non-payment incontinuous transactions with specific buyers.
Through its trade insurance, NEXI will continue to support
Japanese companies for their enhancement of internal credit
management and maintaining of stable transactions with theirglobal partners.

Photo provided by Nippon Talc Co., Ltd.

43

NEXI Activities

SME Exports Covered by NEXI Insurance
Export of Milled Rice
NEXI provided Export Credit Insurance for SMEs and AFF
Sector to Senda Mizuho Limited ( Senda Mizuho ) in Kanagawa
Prefecture for the export of milled rice to the People’s Republicof China.

Export value covered by the insurance: About JPY 2 million
Date of signing the insurance contract: June 2022

For more than 100 years since the company’s founding in
1919, Senda Mizuho has pursued its management philosophy
that values Japanese food culture through improving customer
satisfaction and providing reliable products at all times. The
company procures, mills, processes, and sells various kindsof rice, such as those selected with a priority in quality and notbound by brands, ecological wash-free rice that can be cookedwithout rinsing, and environmentally friendly organic rice andspecially cultivated rice.
Introduced by The Bank of Yokohama, Ltd., one of NEXI’s
partner financial institutions, Senda Mizuho decided to use tradeinsurance to reduce non-payment risks in its export to China.
NEXI will continue to promote global development ofenterprises in the AFF Sector by reinforcing cooperation withpartner institutions and promoting the use of trade insurance.
Photo provided by Senda Mizuho Limited

Export of Wagyu Beef
NEXI provided Export Credit Insurance ( Individual ) for theexport of wagyu beef to Qatar by Hokkaido Global Business
Promotion Board Co., Ltd ( Hokkaido Global ).
Hokkaido Global was established in 2016 and is engaged

Export value covered by the insurance: About JPY 6 million
Date of signing the insurance contract: November 2022

in the export and sales of beef, seafood products, processed
products, and other quality ingredients and food products of
Hokkaido. To market Hokkaido’s exquisite products globally,
the company is working to obtain approvals for import from thetarget countries and to set up local routes for import, wholesale,and resale. It is also pouring its efforts to create and foster
a comprehensive business spanning from Hokkaido to theinternational markets.
Hokkaido Global used trade insurance for its export of
Hokkaido beef to the Middle East, in order to reduce the risks
involved with the inability to collect receivables or to ship goods.
NEXI will continue to contribute to increasing exports ofagricultural, forestry, and fishery products and foods fromthroughout Japan via its trade insurance.
Photo provided by Hokkaido Global Business Promotion Board Co., Ltd

44

Annual Report FY2022

Annual Report FY2022

Export of Chemicals to India

export of chemicals to India.
Established in 1953, Dipsol has been expanding R&D,

Export value covered by the insurance: About JPY 2 million
Date of signing the insurance contract: September 2022

manufacturing, and sales of metal surface treatment chemicals
on a global scale. The company aims to create a safe and

NEXI Review of
Performance

NEXI provided Export Credit Insurance for SMEs and AFF
Sector to Dipsol Chemicals Co., Ltd. ( Dipsol ) in Tokyo for its

enriched lifestyle through its surface treatment technologies thatare essential for transportation vehicles, such as automobiles,
motorcycles, and airplanes, electrical appliances and mobile
electronic devices that are indispensable in our daily lives, andNEXI Activities

construction machinery used in heavy industry.
Dipsol used trade insurance for its export to India whichallowed the company to reduce the risks of non-payment and toproceed its first export to a new buyer with a sense of security.
NEXI will continue to support Japanese companies for theirchallenges in exploring new customers through providing its
trade insurance.

Insurance Products

Photo provided by Dipsol Chemicals Co., Ltd.

Export of Carbide-Tipped Saw Blades
NEXI provided Export Credit Insurance for SMEs and AFF

Prefecture.
Sugiyama offers a wide range of saw blades tailored forspecific materials and applications. Leveraging its experienceand unique technology, the company designs products＊ SIBA is a supporting partner institution and The Shizuoka Bank is apartnering bank of NEXI.

Export value covered by the insurance: About JPY 25 million
Date of signing the insurance contract: June 2022

according to user needs and responds flexibly to the diversifying
demands of the global market. Sugiyama participated as
an exhibitor in the Small and Medium Enterprises New

About NEXI and
Organizational Operation

Sector for the export of saw blades to Taiwan by Sugiyama
Saw Mfg. Co., Ltd. ( Sugiyama ), in Hamamatsu City, Shizuoka

reduce the risks involved with their export activities.

Manufacturing and New Services Expo in 2022, where
FY2022 Financial Results

businesses throughout the country demonstrated their new
products, services, and technologies across various fields,
which they developed utilizing the subsidy for manufacturing.
The company is delivering its technologies to promote theachievement of the SDGs and a recycle-based society.
Sugiyama was introduced to NEXI’s export credit insurance
through Shizuoka International Business Association ( SIBA ) and
The Shizuoka Bank, Ltd.,＊ and was able to mitigate the risks of
non-payment associated with its exports.
NEXI will continue to support mid-tier enterprises and SMEs
that meet the expectations of international users with their hightechnologies, by providing trade insurance which allows them to

Photo provided by Sugiyama Saw Mfg. Co., Ltd.

45

NEXI Activities

SME Exports Covered by NEXI Insurance
Export of Fishery Products
NEXI provided Export Credit Insurance for SMEs and AFF
Sector to North Coop Gyoren, K.K. ( North Coop Gyoren ) in
Hokkaido for the export of fishery products to the People’s
Republic of China.

Export value covered by the insurance: About JPY 22 million
Date of signing the insurance contract: January 2023

Established in 1989 as an affiliate of the Hokkaido Federationof Fisheries Cooperative Associations ( Gyoren Group ), whichaims to ensure a stable supply of fishery products from
Hokkaido, North Coop Gyoren imports and exports local
seafood and processed products.
The company successfully reduced the country and nonpayment risks associated with the buyer by using the insurance
through the referral of North Pacific Bank, Ltd., a partner of
NEXI in its network with regional banks to support SMEs’ global
operations.
NEXI will continue to support companies working to expand
exports of domestic agricultural, forestry and fishery products
and food products by providing trade insurance as a tool for
reducing risk in overseas transactions.

Photo provided by North Coop Gyoren, K.K.

Export of Marine Pumps
NEXI underwrote Export Trade Insurance ( individual ) for the

NEXI will continue to support and encourage exports fromexport of marine pumps to the Republic of Korea by TAIKOKIKAI INDUSTRIES CO., LTD. ( Taiko Kikai Industries ), based inJapan by proposing trade insurance that meets the needs ofindustry, company size, and risk mitigation.

Yamaguchi Prefecture.
Taiko Kikai Industries has developed technology in the field

Export value covered by the insurance: About JPY 4 millionof marine pumps since its establishment in 1956, which they
continue to apply and build upon today to provide pumps that

Date of signing the insurance contract: April 2022

meet the needs of different industrial fields on land.
It is the first time the company has used trade insurance as a
new risk hedging tool for export transactions.

Photo provided by TAIKO KIKAI INDUSTRIES CO., LTD.

46

Annual Report FY2022

Insurance Products
Trade and Investment Insurance– How It Works48

Insurance Products
to Support Your Business49

Insurance Application Process

56

TOPICS

60

47

Insurance Products

Trade and Investment Insurance – How It Works
Trade and investment insurance covers risks associated with international trade and other overseas transactions that cannot becovered by private-sector insurance.
The purpose of trade and investment insurance is to support and promote companies on overseas business development by
mitigating the risks associated with foreign trade and overseas investment.

Foreign Country
Governmentof JapanInsurance
contract

100% equity

Japanesecompany

Export, investment,
financing, etc.

Foreign company
Overseas project

Trade and investment insurance covers losses incurred by Japanese companies, banks, etc. due to the occurrence of the following risks.

Political Risk＊

Commercial Risk＊● Restriction or prohibition on foreign exchange transactions,

restriction or prohibition on imports● War, civil war, revolution● Delay in the remittance of foreign currencies attributable tothe paying country● Punitive tariffs, terrorism● Sanctions imposed by the UN or countries other thandestination countries● Expropriation● Natural disaster, or any other state of emergency whichcannot be considered attributable to the party to the contract● Non-payment by the counterparty for 3 months or more

( except for cases where the exporter is deemed liable forclaims made by the counterparty, such as damage and 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 for cases where a special clause isattached. )Event occurs

The following losses are covered:Pre-shipment Risk
Losses incurred due tofailure to ship

Post-shipment Risk

Overseas Investment Risk

Losses incurred due toLosses on investment assets
as a result of discontinuation

failure to collect receivables,
service fees, or loans

or suspension of a joint venture＊ Political 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 )48

Annual Report FY2022

Annual Report FY2022

Insurance Products to Support Your BusinessExport Credit InsuranceInsurance for export, intermediary trade, and technical cooperation
natural disasters, or ii ) inability to ship goods due to bankruptcyof the counterparty, etc., as well as losses resulting from inability

as war, revolution, terrorism, import restriction/prohibition, andthe technology has been provided.

to collect payment after the goods have been shipped or after

NEXI Review of
Performance

In cases where Japanese exporters export goods to, engage
in intermediary trade, or provide technology such as construction
work, this insurance covers losses due to i ) force majeure such

ExportNEXI Activities

Export Credit Insurance
Unable to export
Japanese
Exporter

Foreign
Importer
Unable to collect receivables

Insurance ProductsIntermediary Trade

Unable to ship

Japanese
Intermediary
Trader

FY2022 Financial Results

Unable to collectreceivables

Foreign
ImporterCountry B

About NEXI and
Organizational Operation

Foreign
Manufacturer
Country A＊ 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 shipment contracts and contracts of acompany 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, orsuch as royalties due to i ) force majeure such as war, or ii ) the
counterparty’s bankruptcy or delay in payment.

copyrights abroad are unable to collect payment of license fees

49Insurance Products

Insurance Products to Support Your Business

Trade Insurance for Standing Orders from Specific Buyers
Insurance for companies that continually conduct business with specific buyers
This insurance is suitable for continuous transactions with a

The exporter does not need to apply for an insurance for eachspecific buyer for a Japanese exporter to supply products, etc.

export contract. All insurable export contracts signed during theinsurance contract period ( 1 year ) are automatically covered if

The exporter sets a limit on insurance claims for a specific buyer
based on the estimated value of transactions for the year.
The insurance also features simplified application procedures.

( Subsidiary )Country B
Buyer ( 2 )Country B
Buyer ( 3 )Coverage may be
unavailable
depending on
country category
or buyer category.

Country A
Buyer ( 2 )Country C
Buyer( Not covered due
to buyer category )( Not covered due
to country category )Country A
Buyer ( 1 )Country B
Buyer ( 4 )Japanese
Exporter,etc.

Scope of coverage sought by exporter

Country B
Buyer ( 1 )Credit risk ofexporter’s subsidiaryis not covered.

NEXI’s coverage

Trade Insurance
for Standing Orders
from Specific Buyers

the contracts meet certain conditions.
＊ The losses covered by this insurance are the same as those covered
by Export Credit Insurance.

Comprehensive Export Insurance with Simplified Procedure
Insurance for companies that continually and repeatedly conduct business with multiple buyers
This insurance comprehensively covers all export contracts,

The exporter does not need to apply insurance for eachetc. concluded by Japanese exporters that meet certain

export contract. Changes to terms and conditions of theconditions during the insurance contract period (1 year). The

contract are also less likely to arise since the notification is madeexporter notifies NEXI of the payments owed for shipped goods

after shipment. The application procedures are therefore simpler

based on the export contract, etc. by the end of the next monthcompared to other types of insurance.

after shipping.

＊ The losses covered by this insurance are the same as those covered
by Export Credit Insurance.

Comprehensive Export
Insurance with Simplified
ProcedureCountry A
Buyer ( 1 )Country A
Buyer ( 2 )Country B
Buyer ( 3 )● Credit risk of exporter’s subsidiary is not covered.
● Coverage may be unavailable depending on country category or buyer category.

50

Annual Report FY2022

NEXI’s coverage

Japanese
Exporter,etc.

Annual Report FY2022

Export Credit Insurance for SMEs and AFF Sector
Insurance for export by Japanese SMEs and by businesses in the agriculture,

This insurance provides support for export by Japanese small

insurance claims to meet the needs of SME and AFF customers.

and medium sized enterprises ( SMEs ) and by businesses in
the agriculture, forestry, and fisheries ( AFF ) sector. The policy

Furthermore, applicants for this insurance who also receive acovers losses incurred if receivables are uncollectable, alsoa pledge on insurance claim rights.

bank loan can simultaneously complete procedures to establish

NEXI Review of
Performance

forestry, and fisheries sector

offering simple application procedures and speedy payment ofExport Credit Insurance
for SMEs and AFF Sector

Export goods
Foreign
Buyer

NEXI Activities

Japanese
SME or AFF
Businesses

Unable to collectreceivables
Loan
JapaneseBank
Create pledge

Insurance Products

Export Bill InsuranceThis insurance is mainly designed to cover the risk of
non-payment at maturity by the buyer to the bank that haspurchased a documentary bill drawn without a letter of credit.
This enables the bank to purchase the documentary bill in adocumentary bills issued to recover export costs, the insurance
covers losses if the bills are not paid due to i ) war, revolution,prohibition of foreign currency exchange, and suspension ofremittance, or ii ) bankruptcy of the foreign importer, etc.

smooth manner. In cases where a Japanese bank purchases

Foreign
Collecting
Bank
Japanese
Bank, etc.

Unable to remit

Unable topay

Present bill
Request negotiation of bill

( Bill Drawer )Export Contract

FY2022 Financial Results

Japanese
Exporter

About NEXI and
Organizational Operation

Send bill

Export Bill Insurance

Foreign
Importer( Bill Drawee )Prepayment Import InsuranceThis insurance covers losses incurred if Japanese importers
make a prepayment for goods in accordance with the contract
terms but the goods do not arrive in accordance with thecontract and the prepayment is not refunded even after

the importers make a refund request for the prepayment inaccordance with the refund terms, due to i ) war, revolution,prohibition of foreign currency exchange, and suspension ofremittance, or ii ) bankruptcy or default of the counterparty.

51

Insurance Products

Insurance Products to Support Your Business

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 institution ＊provides a loan, etc. ( including purchase of bonds andof the loans due to i ) war, revolution, prohibition of foreign
currency exchange, suspension of remittance, or ii ) bankruptcy

assumption of guarantee obligations ) to a foreign importeror default of the importer. The terms and conditions for the loanpurchasing goods from Japan, this insurance covers losses

agreements, etc., must comply with international rules.

incurred if the Japanese bank is unable to receive repayment
Loan, etc.
Foreign
Importer

Buyer’s Credit
Insurance

Exportcontract, etc.

Unable torepayJapanese
Bank, etc.
JBIC

Japanese
Exporter＊ 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 foreign
governments and companies with business funds ( which are
not tied to export from Japan ) for overseas projects, or thatfor the purpose of financing, if the loans, etc. are not redeemed
due to i ) war, revolution, prohibition of foreign currency
exchange, and suspension of remittance, or ii ) bankruptcy ordefault of the borrower or the bond issuer.

purchase bonds issued by foreign governments or companies
Foreign
Governmentor Company

Overseas Untied Loan
Insurance

Unable to repay
Purchase loan / bondJapanese
Company or
Bank

Insurance for guarantee of obligationcompanies, banks, and other institutions ＊ that guarantee

entities are forced to fulfill their obligations because the borrower
fails to repay its borrowing due to i ) war, revolution, prohibition

the borrowing, etc., of overseas subsidiaries, and foreign
governments and companies ( the borrower ), if the Japaneseof foreign currency exchange, and suspension of remittance, orii ) bankruptcy or default.

This insurance covers losses incurred by Japanese

Debt guarantee

Overseas Untied
Loan InsuranceBank

Loan, etc.
Japanese
Company or
Bank＊

Unable to repay

ForeignCompany( Overseas
Subsidiary,
Joint Venture,etc. )＊ NEXI may provide coverage to foreign companies or banks, etc. that finance projects particularly necessary for promoting the sound development of
the international trade of Japan ( e.g., projects that promote the acquisition of important resources and the competitiveness of Japanese companies ).

52

Annual Report FY2022

Annual Report FY2022

NEXI contributes to the overseas deployment of infrastructure systems and to securing a stable supply of natural resources and energyof Japan, as well as to various policies of the Japanese government, by implementing diverse initiatives and developing new products.

In December 2020, NEXI announced the LEAD Initiative

Under this initiative, we aim to underwrite insurance of total value

to respond to the business environment with and after theof JPY 1 trillion by the end of fiscal 2025, while diversifying our

Covid-19. This initiative is intended to actively promote thefunding sources not only from traditional capital providers, but

underwriting of projects, with a focus on contributing to global

also from institutional investors etc.

NEXI Review of
Performance

LEAD Initiative

carbon neutrality, solving social issues and achieving the SDGs.

This insurance covers renewable energy projects, energy

available for Japanese exporters, Japanese companies thatconservation projects, and projects utilizing new technologies

undertake the projects, or Japanese financial institutions thatthat contribute to global environmental conservation, with an

finance them, if they proactively disclose information on theirincreased commercial risk coverage rate up to 97.5% comparedmeasures aimed at environmental conservation and climate

with our usual loan insurances such as Buyer’s Credit Insurancechange mitigation.

NEXI Activities

Loan Insurance for Green Innovation

or Overseas Untied Loan Insurance. This loan insurance is

Insurance Products

Investment and Loan Insurance for Natural Resources and Energyof resources from overseas, Investment and Loan Insurance forcompanies, banks, and other institutions that provide foreign
governments or companies with business funds ( which are

Natural Resources and Energy takes into account the distinctive

not tied to export from Japan ) for projects that contribute torisk profile of natural resources and energy projects. It features a

resource development, if the Japanese entities are unable tocollect the loan due to i ) force majeure such as war, revolution,

To fundamentally reinforce efforts to secure a stable supply

much lower premium rate and wider range of risk coverage thanregular Overseas Untied Loan Insurance, and is available as a
special clause to Overseas Untied Loan Insurance.

Japan
Offtaker,etc.

of the borrower.
Japan

Overseas Resource Project Company, etc.

Offtake, etc.

Energy Resources
Mineral Resources

Production Facility,
Mining Concession

Loan

Subordinated Loan

Senior loan special clause

Shareholder’s Equity

Overseas
Untied Loan
Insurance

Escrow account at a bankin developed countries

Japanese
Bank, etc.

FY2022 Financial Results

Proceeds fromresource sales, etc.

Borrowing

About NEXI and
Organizational Operation

This insurance covers losses incurred by Japaneseprohibition of foreign currency exchange, suspension ofremittance, and natural disasters, or ii ) bankruptcy and default

Repayment◦ This insurance is eligible for senior loans offered by Japanese banks or financial institutions for projects involving Japanesecompanies in the offtake of energy and mineral resources, acquisition of interests, or development of relevant infrastructure＊.
＊ In addition to offtake projects in which Japan is the final demand location, it is applied to projects in which developed energy resources, etc. is highly likely to
be transferred to Japan following a request from Japan.

◦ A lower premium rate compared to regular Overseas Untied Loan Insurance is applicable only when an escrow accountis opened with a bank in a developed country. When no escrow account is opened, the premium rate of regular Overseas
Untied Loan Insurance will be applied, but a higher percentage of commercial risk coverage ( 97.5% ) will be granted.

53

Insurance Products

Insurance Products to Support Your Business

Overseas Investment InsuranceInsurance for investment ( equity investment, etc. )This insurance covers losses incurred by Japanese companies

the subsidiary is located or in third countries, respectively,

with a subsidiary or a joint venture in a foreign country, if thethis insurance covers losses if any of the sub-subsidiaries are

subsidiary or joint venture is forced to discontinue business due

forced to discontinue business due to force majeure such as

to force majeure such as war, terrorism, and natural disasters.

war, terrorism, and natural disasters, even if the other sub-In addition, when a subsidiary of a Japanese company conducts

subsidiaries are able to continue business.

business by establishing sub-subsidiaries in a country where

Overseas Investment Insurance
Investment

ForeignCompany

Japanese
Company( Overseas
Subsidiary,
Joint Venture,etc. )

Unable to remit

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

The insurance also covers losses incurred if dividends are

suspension of remittance.
This insurance can cover a broader range of risks with various

unable to be remitted to Japan or overseas subsidiaries,
etc. due to the prohibition of foreign currency exchange or

special clauses.

Country Y

Country A
Investment

SubsubsidiaryA
activities
×Business
discontinued, etc.

Overseas Investment
Insurance
Subsidiary

Country B
Investment
Japanese
Company

54

Annual Report FY2022

Investment

SubsubsidiaryBAnnual Report FY2022

Business Base Special Clauseto discontinue business due to force majeure such as war,bases in a country where the subsidiary is located, thisterrorism, or natural disasters, even if the other business bases

insurance covers losses if any of the business bases are forced

are able to continue business.

Overseas Investment
Insurance

Country Y
Factory
A×Business
activities

discontinued,
etc.

Investment
Japanese
Company

NEXI Review of
Performance

When a subsidiary of a Japanese company has businessSubsidiary

NEXI Activities

Factory
B

System Revisions to Overseas Investment Insurance ( April 2022 )To meet the needs of our customers, we simplified and increased flexibility concerning the procedures ofOverseas Investment Insurance.
Insurance Products

1. Advance payment of insurance claims ( on the basis of deemed financial statements, etc. ) to SMEs.
2. Revision on conversion rates to be used when calculating loss amount in Japanese yen.
3. Simplification of documents required to be submitted when applying for insurance.
4. Flexibility in consolidating insurance policies, etc.

Frontingthe payment is delayed.

has an export contract with a domestic or overseas buyer for

We call it fronting as NEXI provides the coverage throughcontinued sale of products, etc., the maximum liability is set forreinsurance with local Japanese casualty insurance companies

the annual trade amount. This primarily covers losses resultingthat distribute our insurance products.

Singapore, Hong Kong, Thailand, UK, Vietnam, Dubai

Investment

Overseas
Subsidiary

Sales contract

Buyer

Insurance
contract
Reinsurance
contract

FY2022 Financial Results

Japanese
Company

About NEXI and
Organizational Operationfrom inability to collect receivables if the buyer goes bankrupt or

For cases such as where a Japanese subsidiary in Singapore,
Hong Kong, Thailand, the UK, Vietnam, and the UAE ( Dubai )Country B

JapaneseCasualty
Insurance
Company

Buyer
Export contract /Intermediary trade55

Insurance Products

Insurance Application Process
Applying for Insurance
The chart below describes the summary of insurance application procedures for Export Credit Insurance.
＊ Some aspects may vary depending on the type of insurance.

Re-registration is not re q u i re d f o r
those already registered.

Export contract date

Registration is required for a
first-time user of insurance toobtain an insurance user code
( shipper code ).

Consideration on terms and conditions

Insurance user ( shipper )registration

Calculation of premiums

Annual Report FY2022

Buyer credit review /credit rating registration

56

RegisteredAlso, note that our screening
procedures for loan agreements
and overseas investments witha maturity of two years ormore require a certain periodof time, and we recommendthat you consult with us at an
early stage of your projects.

Unregistered

Please allow yourself enoughtime to complete your application
process.

Confirm buyer registration status

Insurance user ( shipper ) registration

Prior consultation

Prior consultation

Buyer registration
Prior to the application for our
insurance, we will check whether
your transaction counterparty( counterparty to export contract
or payer including an L/Cissuing bank ) is registered ornot. If they are not, registration
will be required.

Annual Report FY2022

NEXI Review of
Performance

Policy period
Coveragefor pre-shipment risks

NEXI Activities
Insurance Products
About NEXI and
Organizational Operation
FY2022 Financial Results

You need to apply for insurance
after the export contract datewithin five business days from theshipping date.
Insurance policy will become
effective after the application.

Postshipment
periodPayment due date /Policy expiration date

Application period

Preshipment
periodShipping date

( 5 days )Policy effective dateInsurance application date /Insurance contract date

Elimination
periodCoveragefor non-payment risks

57

Insurance Products

Insurance Application Process

Insurance Claim Payment
The chart below describes the summary of claims payment procedures for Export Credit Insurance.
＊ Some aspects may vary depending on the type of insurance.

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

Loss prevention andmitigation obligations
Deadline for insurance claim

Delegation of authority to NEXI

Insurance claim

Deadline for notificationof occurrence of loss

Payment due dateOccurrence of eventthat may lead to loss

Insurance contract date

Claimspayment

Insurance claim must be
made within 9 months fromthe payment due date.

Notification of eventthat may lead to loss

Notification of
occurrence of loss

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 aware thatyou have suffered a loss, you must
notify NEXI of the occurrence ofthe loss, in principle, within 45
days from the date on which you
become aware of the occurrenceof the loss ( payment due date ).

In principle, claims
payment will be 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 countries. Since its inception in 1956 as an informal group with no legally 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 for which debt
payment has become difficult. Through such debt relief and rescheduling, creditor countries are able to ensure debt
recovery from debtor countries that do not have sufficient foreign currency. While the repayment schedule may be
prolonged, the process enables fairness to be maintained between creditor countries.

58

Annual Report FY2022

Annual Report FY2022

NEXI Review of
Performance

Maximize
NEXI Activities

Expedite
Enhance efficiency
Recovery phase

Ensuring recovery
through various measures

Distributionof recoveries

Completionof recovery activity
Insurance Products
About NEXI and
Organizational Operation

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

FY2022 Financial Results

Parties conducting recovery● NEXI’s partner collection agencies● Insured ( NEXI’s customers )● NEXI and the Government of Japan ( through negotiations with debtor countries at

the Paris Club, etc. )Obligation to cooperate in recovery efforts● When instructed by NEXI to take necessary measures for recovery, the insured has

an obligation to comply 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.

59

TOPICS
Revision of the Trade and Investment Insurance Act
Following the revision of the Trade and Investment Insurance Act for the first time in seven years andits enforcement in July 2022, NEXI implemented a number of system reforms that lead to improved
customer usability and stable development of international business.

System reforms associated with the revision of the Trade and Investment
Insurance Act ( July 2022 )The following was implemented: 1. Expanding the scope of losses covered by Insurance for Additional
Costs; 2. Expanding the scope of covered events under Special Clause for Additional Costs for Plants,
etc.; 3. Expanding the scope of covered events associated with the failure to ship goods; and 4. Expanding
the scope of borrowers to be covered by Buyer’s Credit Insurance and Overseas Untied Loan Insurance.

System reforms of Overseas Investment Insurance ( March 2023 )1. Direct coverage of risks related to shares of the reinvested party in the reinvestment scheme.
Previously, scope of coverage was limited to losses incurred by direct investees, but was enhanced to cover losses
incurred by Japanese companies arising from losses suffered by indirect investees including those parties to which
the Japanese companies reinvested in.

2. Enhancing the scope of coverage for risks related to inability to remit dividends.
Scope of eligible shares, etc., to be covered associated with the inability to remit dividends was enhanced to include
those of the reinvested parties. Also previously, coverage for inability to remit was limited to those remittances destined
to Japan, but coverage is now available for destinations other than Japan when remittance is not possible.

3. Addition to “events equivalent to the decision to commence bankruptcy proceedings.”
In addition to the “decision to commence bankruptcy proceedings” of the counterparty, which had been specified ascommercial risk events to be covered, “other equivalent events” were added to the scope of coverage. Specifically, anassumed case is the decision to commence corporate reorganization proceedings.

4. Relaxing the requirement of “business interruption, etc.”
NEXI has widened the definition of “business suspension of one month or more” in its policy conditions. For
example, this allows to deem an occurrence of business interruption in a situation where the core business issuspended causing serious obstruction to the entire business, while a part of the business has to be maintained due to“cases where relevant activity is forced to be continued by the foreign government, etc.”

Application of Overseas Untied Loan Insurance ( Domestic Loans )to the JOLCO Scheme for Ships ( January 2023 )In order to support exports of ships by Japanese companies, Overseas Untied Loan Insurance has been madeavailable to cover loans to domestic SPCs for their purchase of ships built in Japan, under the JOLCO ＊ Scheme for
Ships. The improvement is in line with the revision of the Enforcement Regulations of the Trade and Investment
Insurance Act.
NEXI’s insurance will make it easier for banks to provide loans to the leasing companies. The aim is to allow thosefinanced companies to capture global demands for shipbuilding that are expected to continue growing, and tostrengthen the competitiveness of Japanese shipbuilders.
＊JOLCO: The abbreviation for Japanese Operating Lease with Call Option. The depreciation expense of ships owned by the domestic SPCs isrecorded as costs also for those investors who have a stake in the SPCs. Thus, there is a benefit of deferred tax for the investors.

60

Annual Report FY2022

About NEXI and
Organizational Operation
Profile of NEXI

62

Business Plan

64

Business Operation andManagement System

66

Organization Chart

70

Offices

71

TOPICS

72

61

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 byordinary insurance

Competent Minister

The Minister of Economy, Trade and Industry

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

Chairman and CEO

Atsuo Kuroda

President

Kazuhiko Nishino

Managing Executive Officer, Member of Board

Kazuhiro Ishikawa

Managing Executive Officer, Member of Board

Kazuki Hondo

Member of Board

Hideo Teramoto

Audit & Supervisory Board Member ( Full-Time )Mari Oi

Audit & Supervisory Board Member

Tomoyo Matsui

Audit & Supervisory Board Member

Youichi Takei

Number of Employees

243 ( as of April 1, 2023 )Scope of Business

1 ) To conduct trade and investment insurance business operations complying with the provisionof 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 or foreigncompanies who underwrite insurance ( including reinsurance ) which indemnifies losses similar
to the losses covered by the trade and investment insurance, for the liability incurred by suchinsurers.
4 ) To underwrite reinsurance for Japanese insurance companies who underwrite insurance( excluding ordinary insurance ) other than the trade and investment insurance deemednecessary to carry out the purpose of sound development of foreign transactions as prescribedby Cabinet Order, for the liability incurred by such 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 foreign companies who underwrite
insurance ( including reinsurance ) which covers the risks similar to those covered by the tradeand 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 export trade and investment insurance was handled by the Ministry of Economy, Tradeand Industry, the former Ministry of International Trade and Industry )Offices( Domestic ) Tokyo Head Office, Osaka Branch( Overseas ) Singapore Branch, Paris Representative office, New York Representative office62

Annual Report FY2022

Annual Report FY2022

Executive Officers
NEXI Review of
Performance
NEXI Activities
Insurance Products

Back row: Kazuhiro Ishikawa ( Managing Executive Officer, Member of Board ), Hideo Teramoto ( Member of Board )Front row: Kazuhiko Nishino ( President ), Atsuo Kuroda ( Chairman and CEO ), Kazuki Hondo ( Managing Executive Officer,
Member of Board )About NEXI and
Organizational Operation
FY2022 Financial Results

Tomoyo Matsui( Audit & Supervisory Board Member )Mari Oi( Full Time Audit & Supervisory Board Member )Youichi Takei( Audit & Supervisory Board Member )63About NEXI and Organizational Operation

Business Plan
Medium-term Business Plan ( FY2022 - FY2024 )
In pursuit of the actualization of our corporate philosophies, the medium-term business plan ( FY2022 - FY2024 ) has been formulated
based on the following four pillars of action. The plan has been partially revised in April 2023.

Ⅰ Provide extensive support for the global business activities of Japanese companies.
Four pillarsof action

Ⅱ Contribute to solving social issues.
Ⅲ Increase the quality and efficiency of operations.
Ⅳ Continue to change and grow as the company and on an employee basis.

Medium-term Business Plan ( FY2022 - FY2024 ) ( excerpt )Ⅰ.	Provide extensive support for the global
business activities of Japanese companies.
1.	Support more corporate activities with more
underwriting of trade insurance.
( 1 ) Enhance the underwriting of trade insurance.
< Basic policies >● Strengthen our efforts to increase the use of insurance

through introduction of insurance products and services
according to customer needs, based on our continuous
analysis of the export credit market.

● Expand the implementer of projects supported by loan

insurance to start-ups, SMEs, and companies aimed
at the industrialization and commercialization of newtechnology seeds, such as decarbonization. Additionally,
contribute to the development of these businesses bymeeting their financial needs.
● Strengthen our efforts in individual projects by promoting

collaboration with international organizations. Moreover,invest in the African Trade Insurance Agency, utilizing thefunction of investing in foreign corporations engaged in
the trade insurance business, which was added by therevised Trade and Investment Insurance Act.

● Encourage existing export insurance customers to use

other types of insurance by strengthening the promotion of
investment insurance and overseas fronting products, etc.
● As for loan insurance, develop a framework to support

certain fields where new projects can be expected
and build a track record of insurance underwriting inthese sectors. Some examples are sovereign, quasisovereign, and corporate projects which utilize measures
such as the Lead Initiative designed to contributeto solving social issues, planting the seeds of futurebusiness for Japanese companies, and strengthening
cooperation with important overseas partners, etc.; andenergy transition projects which contribute to a smooth
decarbonization of society.

( 2 ) Support more corporate activities with trade insurance.
< Basic policies >● Provide security to more customers through tradeinsurance services by raising awareness among SMEs, etc.,
specifically through the efforts to effectively increase sales
channels by working closely with private financial institutions
and the Japanese government and government-relatedorganizations, as well as leveraging IT technologies.

( 3 ) Take more and diverse risks.
< Basic policies >Review the underwriting assessment methods so that we
can take a wider range of risks, even in cases where risk
assessment and underwriting have been difficult in the past.

2.	Provide trade insurance products and services
that meet customer needs.
( 1 ) Improve trade insurance products for ease ofunderstanding and use.
< Basic policies >● Prioritize the improvement of our system to address

customer needs to reduce administrative burden, such as
easy-to-understand policies and simplified procedures.
● Continue

to improve our products, services, andoperations in cooperation with the Government toaddress the needs of companies faced with majorchanges in business forms in the midst of a drasticchange in the business environment.

● Expand the funders of projects supported by loan

insurance to a wider range of investors, in order toensure a stable funding source and contribute to thediversification of fund management for investors.

( 2 ) Provide added value beyond loss compensation.
< Basic policies >Play a distinctive role as an official export credit agency
by providing customers with high value-added services
based on NEXI’s expertise.

64

Annual Report FY2022

Annual Report FY2022

Ⅱ. Contribute to solving social issues.
1. Initiatives to contribute to resolving social issues.

< Basic policies >Support national measures aimed at solving social
issues by underwriting trade insurance through the LEAD
program, etc., and continue to actively cooperate with theGovernment.

( 2 ) Solve social issues in other ways than insurance
underwriting.

< Basic policies >● Extend the period of job rotation wherever possible, andstrive to share and utilize knowledge and know-how
throughout NEXI. Additionally, ensure operational quality
above a certain level and improve productivity across theorganization through the knowledge sharing.
● In order to promote the sharing and effective utilizationof knowledge and know-how, strongly promote thedevelopment of internal IT infrastructure through theintroduction of IT solutions.

NEXI Review of
Performance( 1 ) Solve issues through the underwriting of tradeinsurance in coordination with national policies.

( 2 ) Share knowledge across the organization.

NEXI Activities

3.	Increase expertise of the organization as a wholeand individual employees.

< Basic policies >● Address various social issues related to NEXI’s daily

operations.
● Manage funds from the perspective of contribution tosolving social issues, such as purchasing green bonds.
● Procure IT equipment, etc., taking environmental impact

into consideration.

( 3 ) Create and disseminate rules and frameworks forsolving social issues.

● Work with the Government to solve issues, such as

decarbonization and human rights protection, throughactive participation in various international organizations
and conferences, including the OECD and BU, andinformation gathering.
● Study an appropriate way to meet the standards of the

TCFD recommendations on climate-related financial
disclosures, which NEXI endorsed in 2019.

Provide training so that each of employees can proactively
acquire knowledge and skills and increase expertise inaccordance with the Action Guideline.
Work on developing human resources suitable for aworld-class export credit agency by improving IT literacy
and gaining specialized knowledge.

Ⅳ.	Continue to change and grow as the company
and on an employee basis.

Insurance Products< Basic policies >< Basic policies >( 1 ) Invest in human resources.
< Basic policies >Place the right people in the right positions tos im u lt a n e o u s ly c o n t r ib u t e t o t h e a c h ie v e m ent o forganizational goals and the growth of employees.

( 2 ) Invest in systems.

1.	Strengthen governance and risk management
system.
< Basic policies >● Formulate a medium- to long-term system strategy

including the optimal system designed to address
customer feedback obtained from questionnaires, etc.
and challenges on management and operations.
● Encourage participation in the system development

process from across departments and promote
development of structure and training for cooperation
between departments in a planned manner.
● Develop and expand a disaster-resilient system and takenecessary measures to deal with the ever-increasing riskof cyberattacks.

( 3 ) Plant seeds for future business.

2. Optimize and streamline operations.

< Basic policies >( 1 ) Optimize and streamline operational processes.

It is necessary to respond to changes in the businessenvironment swiftly and steadily and to actively plant seeds
leading to the development of new business in the future.
To this end, we create the Digital Transformation (DX)Group, which promotes the introduction of the latest IT
technologies, in the IT Management Department in April
2022. Additionally, the DX Committee is to be establishedto deal with DX in trade transactions across departments.

< Basic policies >Under the direction of Business Operation Management
Department, establish an effective system to prevent
operational errors without particular burden through acomprehensive inspection of the management system, suchas reviewing the flow of existing operations on a companywide basis; building optimal and efficient operational
processes, including a large delegation of decision-making
authority; and standardizing operation manuals.

FY2022 Financial Results

Further strengthen internal control through measures,such as the establishment of the Business Operation
Management Department in April 2022, which oversees the
optimization of operational process, and the development
and expansion of the risk management system in line with
the Enterprise Risk Management Basic Principles introducedin full in FY2021, as well as guidelines for supervision
released by the Ministry of Economy, Trade and Industry.

< Basic policies >About NEXI and
Organizational Operation

Ⅲ. Increase the quality and efficiency of operations.

65

About NEXI and Organizational Operation

Business Operation and Management System
Corporate Governance
Supervision, Evaluation, and Business Execution
NEXI is committed to strengthening the supervision and evaluation of its Board of Directors and other bodies while enhancing
business execution agility through the establishment of the Board of Directors and the Audit & Supervisory Board that are stipulated in
the Companies Act, and the Evaluation Committee, the Corporate Governance Committee, the Corporate Management Committee,
and the Advisory Group.
General Meeting of
Shareholders
Independent
Accounting Auditor

Audit & Supervisory
Board
Board ofDirectors
Evaluation
Committee

Risk Management
Advisory Group
Corporate GovernanceCommittee

Chairman & CEO

Internal Audit
Group

Monitoring
Committee

Corporate Management
Committee

Board of Directors

Corporate Governance Committee

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 execution of NEXI’s business from an outside perspective.

The Corporate Governance Committee is an advisory bodyto the Board of Directors that is mainly comprised of outside
members. Its purpose is to deliberate on important mattersconcerning compliance and to verify the company’s internal
control system.

Audit & Supervisory Board
The Audit & Supervisory Board supervises the decisionmaking process of the directors and execution of their duties
based on various laws and regulations, such as the Companies
Act and the Articles of Incorporation. The Audit & Supervisory
Board consists of three corporate auditors, two of whom areoutside 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, NEXI organizes the Audit
Secretariat to assist corporate auditors with their duties.

Evaluation Committee
The Evaluation Committee consists of outside experts andthe outside director. This committee evaluates and advises
on NEXI’s operational and administrative status as well as on
management issues on which the Board of Directors consultswith the committee.

66

Cash Management
Advisory Group

Annual Report FY2022

Corporate Management Committee
The Corporate Management Committee is a body mainlycomprised of executive officers and deliberates on importantmatters concerning management.

Advisory Group ( Risk / Cash Management )The Risk Management Advisory Group serves as an advisory
body to the Board of Directors on risk management. The CashManagement Advisory Group serves as a consultative body to
the Chairman and CEO on cash management. Both of thesegroups provide advice based on the specialized knowledge ofoutside experts.

Monitoring Committee
The Monitoring Committee deliberates on matters, such asimportant issues that occurs in the execution of the company’sbusiness and proposals for the improvement of the issues.

Annual Report FY2022

Government Involvement

Internal Control Principles

NEXI Review of
Performance

NEXI is a 100% state-owned company that operates trade and investment insurance business under the control and supervision by
the competent minister, administration and inspection by the Board of Audit of Japan and the competent ministry.

In accordance with the Companies Act, NEXI’s Board of Directors establish Internal Control Principles to ensure proper operation of
the company. Internal rules and related systems are created in line with those principles.

NEXI Activities

Compliance Promotion
NEXI is aware of its public mission and social responsibility as the policy-based financial institution engaging in the trade andinvestment insurance system, and regards compliance to be one of its most important management issues in order to consistently
comply with laws and regulations and to operate business in a fair and just manner. The following are related efforts:

NEXI establishes basic compliance policies to ensure that all executive officers and staff members ( including dispatchedworkers; Collectively, “the Staff Members” ) conduct their tasks in compliance with the applicable laws and regulations
and the Articles of Incorporation in a sound and appropriate manner.

●

NEXI stipulates internal rules concerning confidential information management, information security policies, and otherinformation management issues, and creates a framework to appropriately store and manage confidential informationand information assets.

●

NEXI compiles a compliance manual that outlines basic matters concerning compliance that should be known by
the Staff Members, as well as important laws and regulations that must be observed. The manual also provides acomprehensive explanation on internal rules to help promote a better understanding of compliance issues. NEXI
formulates an annual compliance promotion program ( compliance program ) each year, and strives to promoteawareness and to ensure the implementation of compliance rules through education and training activities related tocompliance.

System for Implementing and Promoting Compliance
NEXI establishes the Corporate Governance Committee as a meeting committee structure with the purpose ofdeliberating on important compliance issues and monitoring the state of compliance.

●

NEXI appoints a compliance officer at each department and branch ( head of department and branch ) to improve thecompliance system and promote department and branch-level initiatives.

●

NEXI establishes the Legal and Compliance Group in charge of managing legal compliance and compliance-related
initiatives to ensure compliance with laws, ordinances, and regulations and to promote compliance.

●

NEXI stipulates a reporting route to detect important issues concerning compliance at an early stage and implement
necessary corrective measures. NEXI also organizes an effective internal reporting system and operates it appropriately.

FY2022 Financial Results●

About NEXI and
Organizational Operation●

Insurance Products

Awareness and Thorough Implementation of Compliance Rules

Policy Related to Antisocial Forces, etc.
●

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

67About NEXI and Organizational Operation

Business Operation and Management System

Risk ManagementAs the sole specialized institution responsible for the trade and investment insurance business in Japan, NEXI aims to contribute to thesound development of international business by providing security to even more customers engaging in global trade, promoting efforts toimplement Japan’s growth strategy, and actively meeting the diverse needs of customers. In order to fulfill its social roles, NEXI establishes
the following framework to appropriately conduct enterprise risk management with the advice of the Risk Management Advisory Group.

Enterprise Risk Management
NEXI establishes the enterprise risk management basic
principles with the aim to ensure a long-term financial soundness
and attain the purpose of the trade and investment insurance
system. NEXI defines the enterprise risk management as properly
managing various risks facing NEXI by category, managing
all identified risks on an enterprise basis, and controlling themacross all lines of its business. In line with the basic policies,
NEXI creates a framework to manage risks in an appropriate
and integrated manner. The Risk Management Group of the
Corporate Governance Department supervises the enterpriserisk management under specific management methods andthe monitoring and instructions of the Board of Directors. NEXI
conducts risk identification and assessment, implements stresstests, manages assets and liabilities, categorizes all risks to
be managed into “insurance underwriting risk,” “investment
and liquidity risk,” and “operational risk,” and designates thedepartments that are responsible for the management andsupervision of and are in charge of each risk.

arising from the worsening of cash flow mainly due to outflow of
more cash than anticipated because of the occurrence of a hugedisaster, etc., which results in it becoming more difficult to securenecessary funds or being forced to enter into transactions undermaterially less favorable conditions than usual; and ( iv ) market
liquidity risk: risk of losses arising as a result of being unable to sell
assets due to a lack of market depth or being forced to sell themat a remarkably low price. Under these definitions, NEXI monitorsand controls each risk based on the comprehensive asset
liability management approaches. More specifically, given thecharacteristics of liabilities in the trade and investment insurance,such as temporary concentration of substantial amount of claims
paid, NEXI gives importance to securing the safety and liquidity
and establishes the cash management policy to restrict potential
investees to deposits and highly safe bonds, including Japanese
government bonds, local government bonds, government agency
bonds, and the U.S. government bonds and other internationalorganization bonds. NEXI also conducts quantitative managementof foreign exchange and interest risks entailed in the asset
portfolio using VaR for proper risk management.

Insurance Underwriting Risk Management

Operational Risk Management

NEXI defines the insurance underwriting risk as the riskof liquidity and capital substantially damaged by insurance
claim payment beyond the range that is normally anticipated.
In underwriting insurance, NEXI assesses risks, including
country risks, based on various data gathered by the Credit
Department, overseas offices, and specialized investigation
agencies, in addition to information from customers through thesales departments. NEXI also monitors the status of the debtor
countries, companies, and projects to which credit is extended
in order to reflect any changes in their credit conditions in its
underwriting policies.
Additionally, NEXI conducts quantitative management using
the risk amount ( VaR＊) and centralized risk management, suchas measuring concentration risk and other analysis for the entire
portfolios underwritten, in addition to risk assessment and credit
management by individual project, as well as strives to properly
manage accumulation risks through outward reinsurance or othermeans.

As the risks included in the operational risk, NEXI defines:( i ) clerical risk: the risk of business interruptions or losses
arising from failure to properly perform clerical work due to an
operational incident, fraud or other mistake of the Staff Members
and contractors of NEXI; ( ii ) system risk: the risk of businessinterruptions or losses, or leakage of information of NEXI and
its customers arising in relation to development, maintenance,
operation, and usage of IT systems; ( iii ) information leakage risk:
the risk of business interruptions or losses arising from failure by
those including the Staff Members and contractors of NEXI toproperly handle confidential information and other sensitive data;( iv ) institutional and legal risk: the risk of losses including arisingfrom being imposed a penalty on the grounds of a violation ofinternational agreements, domestic or foreign laws or contracts,
etc., or the risk of business interruptions or losses mainly arisingfrom the occurrence of a legal dispute or changes in the tradeand investment insurance system and the related agreements;( v ) human risk: the risk of business interruptions or losses arisingfrom a shortage of the required human resources, harassment, or
improper personnel/labor management, etc.; ( vi ) reputation risk:
the risk of business interruptions or losses arising from damage
to social credibility due to defamation against NEXI, spreading ofrumor, etc.; and ( vii ) accident and disaster risk: the risk of businessinterruptions or losses, or damage or danger to assets of NEXI andlives and bodies of the Staff Members due to an incident, accident,
or other disaster. Under these definitions, NEXI designates thedepartments that are responsible for the management andsupervision of and are in charge of each risk, and establishes the
management policy by risk for proper management.

Enterprise Risk Management Basic Principles＊ Value at Risk: The maximum amount expected to be lost at a certain
probability.

Investment and Liquidity Risk Management
As the risks included in the investment and liquidity risk, NEXI
defines: ( i ) market risk: the risk of losses arising from fluctuationsin the value of assets and liabilities due to changes in interests,
foreign exchange rates, etc.; ( ii ) credit risk: the risk of losses
arising from factors such as the worsening of financial conditionsof companies to which credit is provided and of reinsuring
companies; ( iii ) liquidity risk ( cash flow risk ): the risk of losses

68

Annual Report FY2022

Annual Report FY2022

Clerical Risk Management

NEXI Review of
Performance

promptly according to its severity level, and necessary actions
must be taken in accordance with their instructions. The
Monitoring Committee, which consists of the Chairman & CEO
and other members of the management team, analyses anddiscusses the causes for any operational mistake that occurs
and measures to prevent the recurrence, and diffuses the resultsof such discussion across the company as necessary, thereby
enhancing the effectiveness of the company-wide clerical risk
management.

Under the clerical risk management regulations, NEXI appoints
the head of each department and branch as the person
responsible for clerical risk management, and is developing therelated rules and operations manuals and creating a multilayered
check system for efficient and accurate execution of operations.
Additionally, NEXI establishes the procedures in which any
operational mistake or other error, when it occurs, must be
informed to the Chairman & CEO and the related departments

Risk Management and Compliance System

Evaluation
Committee

Audit &
Supervisory Board

Risk Management
Advisory Group

Consultation /adviceBoard of Directors

NEXI Activities

Consultation /evaluation

Corporate GovernanceCommittee
Advice /approval of plan

Cash Management
Advisory Group

Reporting / instructions

Chairman & CEO / Corporate
Management Committee

Coordination

Monitoring
Committee

Instructions

Insurance Products

ReportingAnalysis and review ofoperational
errors, etc.

Enterprise Risk Management

Compliance / Compliancewith Laws andRegulations

Insurance
Underwriting Risk

Investment andLiquidity Risk Management

Risk Management Group,
Corporate Governance
Department
Credit Department

Risk Management Group,
Corporate Governance
Department

IT Management
Department

Risk Management Group,
Corporate Governance
Department

System Risk

Clerical Risk

General Management andPublic Relations Group,
General Management
and Administration

Personnel Group,
Personnel and Human
Resources Department

Market Risk

Country/Credit Risk
( Country Risk )Credit Risk
Concentration Risk

Operational Risk

Legal andCompliance Group,
Corporate Governance
Department

Internal Audit

Risk Management Group, Corporate Governance Department

Liquidity Risk

( Cash Flow Risk )Reputation Risk
Accident /Disaster Risk

Human Risk
Legal and Compliance Group,
Corporate Governance
Department, and others
Institutional /Legal Risk

FY2022 Financial Results

Market Liquidity Risk

Information
Leakage Risk

Compliance /Compliance withLaws and
Regulations

About NEXI and
Organizational Operation

Audit by Audit & Supervisory Board Members

Internal Audit
Group

Business Continuity
Responses to Large-scale DisasterWith the recognition that large-scale disasters can pose a serious risk to the business, NEXI formulates the business continuity plan
to avoid the impact of large-scale disasters on its business as much as possible and to quickly restore business when such disasters do
occur.

69

About NEXI and Organizational Operation

Organization Chart（ as of April, 2023 ）GeneralManagement andAdministration
Department

General Management
and Public Relations Group

Procurement and Administration GroupAccounting Group
Financial Management
and Reinsurance Group

Personnel and
Human Resources
Department

Personnel Group
Human Resource Development
and Recruitment Group

Corporate Planning Group
Planning andPolicy Department

International Relations Group
Corporate Policy
and Data Management Group

Insurance System Management Group

Advisory Groupfor FundManagement

Audit & Supervisory Board Members
Audit & Supervisory Board
Audit Secretariat

Independent
Accounting
AuditorEnvironmental
Guidelines
Examiner
Environmental
Guidelines
Examiner
Secretariat

GeneralMeeting of
Shareholders

Board ofDirectors

Corporate
GovernanceCommittee

Advisory Groupfor RiskManagement

Business Process Management Group
Insurance Policy Contract Group
Treasury Group

Corporate
Governance
Department

Risk Management Group
Legal and Compliance Group
Information System Management GroupIT Management
Department

Project Management GroupIT Development Group
Digital Transformation ( DX ) Group

Business Development Group

Chairmanand CEO
Corporate
Management
Committee

Evaluation
Committee

Business
Operation
Management
Department

Personnel
Committee

Underwriting
Department

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

Management Group
Structured andTrade FinanceInsurance
Department

Solution Service GroupPower Group
Natural Resources Group
Infrastructure Group

Monitoring
Committee
AssetManagement
Department
Internal Audit
Group

Claims Service Group
Recovery Group
Credit Analysis Group

Credit Department

Environment GroupCountry Risk Analysis Group
Credit Administration Group

Osaka Branch

Underwriting Group

Singapore
BranchOverseas Office70

Annual Report FY2022

Paris Representative Office
New York Representative OfficeAnnual Report FY2022

Offices
Singapore Branch

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

16 Raffles Quay#38-06, Hong Leong Bldg.,
Singapore 048581

Phone: +81( 0 ) 3-3512-7650
Fax: +81( 0 ) 3-3512-7660＊NEXI Singapore is not a licensed insurer nor insuranceintermediary under the Singapore Insurance Act.

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

NEXI Review of
Performance

Head Office

JR Suidobashi Sta.

NEXI Activities

NEXI

NEXI Singapore

Chiyoda First Bldg.
EAST Wing

y

e.
Av

sswa

jiro
Me

Expre

.
t Ave
i Wes

ve.
san A
Haku

East
Exit

West
Exit

h
obas
Suid

olitanop
Metr

JR Chuo Line

Sunlight Bldg.

A2
Exit

Kitanomaru Square

Toei Subway
Shinjuku LineSendaimae
Crossing

YasukunTokyo Metro
Hanzomon Line

Paris Representative Officec/o JETRO 27, rue de Berri, 75008 Paris France

Insurance Products

Subway Jinbocho Sta.

ita Sta.
Johnan Shinkin Bank

Kudanshi Ave.

A4
Exit

ine

No.5
Exit

ita L

No.7 Exit

Villa Fontaine
Kudanshita

ay M

ne

i Li

Senshu Univ.

ubw

oza
oT

etr

M
yo

Tok

S
Toei

Ohara
Bookkeeping
SchoolPhone: +33-( 0 ) 1-4261-5879
Fax: +33-( 0 ) 1-4261-5049

Osaka Branch

NEXI Paris

Phone: +81( 0 ) 6-6233-4019
Fax: +81( 0 ) 6-6233-4001

New York Representative Office

About NEXI and
Organizational Operation

Aioi Nissay Dowa Insurance
Yodoyabashi Bldg., 8th Floor,
3-1-22 Kitahama, Chuo-ku,
Osaka City, Osaka 541-0041
Japan

Bank of Japan

Yodoyabashi Sta.

Mizuno46th Street

Osaka City Office45th Street

NEXI, Osaka

Aioi Nissay Dowa Insurance
Yodoyabashi Building

Yodoyabashi Sta.
Mizuho Bank

Keihan Line

44th Street
Penn Station
Port Authority

43th Street
42th Street

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

NEXI NY

Park Avenue

47th Street

Vanderbilt Avenue

Hanshin Expressway Loop Line

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

Oye Bridge
Midosuji St.

Higobashi Sta.

Tosabori Ave,

Osaka Metro
Midosuji Line

Yodoya Bridge

Tosabori River

Route 1
Osaka Metro Tanimachi Line

Madison Avenue

Dojima River

Kita-Shinchi Sta.

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

Fifth Avenue

JR Tozai Line

Osaka Metro
Nishi Umeda Sta. Yotsubashi
Line

JR

.

Sta

hiHigaesda Sta.
Um ta.
aS
Umed

ka

a
Os

FY2022 Financial Results

c/o JETRO 565 Fifth Avenue, 4th Floor, New York,
N.Y. 10017 U.S.A.

Grand
CentralTerminal

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

71

TOPICS

Publicity Activities for Trade and Investment Insurance
NEXI actively engages in public relations to increase the presence and to promote the use of trade andinvestment insurance system. In FY2022, we held three press conferences by the Chairman and CEO andresumed participation in events as a supporting institution as in-person exhibitions and seminars reopened acrossthe country.

Participating in Exhibitions and Events
NEXI is actively taking part in trade fairs and exhibitions forexport business held nationwide to promote the use of tradeand investment insurance. In FY2022, NEXI participated inlarge exhibitions in Tokyo, Osaka, Okinawa, and Hokkaido,
such as the Overseas Business Expo 2022 Osaka and the“JAPAN’S FOOD” EXPORT FAIR held at Tokyo Big Sight. As asupporting institution, NEXI set up consultation booths,
distributing information materials and offering detailed
explanations to the attendees of the events.
NEXI also collaborated on seminars hosted throughout
Japan by the government and regional support organizations,providing descriptions to potential users on how to use tradeand investment insurance effectively by raising specificexamples.

NEXI’s booth at the 6th “JAPAN’S FOOD” EXPORT FAIRJETRO’s Trade Business Seminars
In the Trade Business Seminar 2022 held by the JapaneseExternal Trade Organization (JETRO), NEXI gave a lecture,
titled “Emerging Global Risks and Trade and Investment
Insurance,” illustrating the role of trade and investment
insurance in export activities. This was the first time for NEXI tooffer a lecture in the seminar, which was streamed online from
October 18, 2022, to February 28, 2023, and viewed by about
1,500 of JETRO’s paying members.

NEXI facilitates the use of trade and investment insurance through various media addressing different customer
needs, including easy-to-understand brochures＊1 with illustrated stories, YouTube videos＊2 visually demonstrating
how to use trade and investment insurance, and flyers＊3 describing Export Credit Insurance for SMEs and AFF
Sector targeting exporters of agricultural, forestry, and fishery products and foods.
＊1 Product Information Brochure with illustrated stories ( https://www.nexi.go.jp/product/booklet/pdf/pr_gaiyou_03.pdf )＊2 Official YouTube Video ( https://www.nexi.go.jp/movie/ )＊3 Leaflet for SMEs ( https://www.nexi.go.jp/product/booklet/pdf/pr17_01.pdf )Leaflet for AFF Sector ( https://www.nexi.go.jp/product/booklet/pdf/pr18_01.pdf )72

Annual Report FY2022

FY2022 Financial Results
FY2022 Financial Review

74

Financial Statements etc.

75

73

FY2022 Financial Results

FY2022 Financial Review
Overview of Financial Statements
( Millions of Yen )6th Fiscal Year ( FY2022 )
116,632

Ordinary income

30,201

Underwriting income( Net premiums written )29,942

Subrogation income

47,817

Investment income

38,353
261

Other ordinary income

117,632

Ordinary expenses
Underwriting expenses

109,883( Net claims paid )24,075( Commissions )(173)( Provision for outstanding claims reserves )1,929( Provision for unearned premiums )(9,629)( Provision for contingency reserves )93,68289

Subrogation expenses

7,660

Operating and administrative expenses

0

Other ordinary expenses(1,000)Ordinary loss

1,000

Extraordinary income
Income before income taxes－

Total income taxes

19
(19)

Net loss
Total assets

1,855,099

Net assets

794,854

Profit and Losses
NEXI’s underwritten amount in FY2022 ( the total amount of

Net premiums written decreased by 1.6% year on year toinsurance contracts underwritten during the fiscal year; the same
applies below) rose 10% year on year to JPY 7.7 trillion. As

JPY 29.94 billion from JPY 30.44 billion. Subrogation income,foreign transactions of Japan have been shifting from exports toyear to JPY 47.82 billion from JPY 9.41 billion, and investment

investments, the underwritten amount of Overseas Investment

income rose 15.7% year on year to JPY 38.35 billion from JPY

Insurance for the fiscal year grew significantly by 50% year on

33.14 billion reflecting the positive impact of interest rate rise

year, recording the largest underwritten amount since NEXI’sand exchange rates. Meanwhile, due to a significant drop inestablishment in April 2001. Export insurance, which accounts

insurance claim payment for country risk events, net claims paid

for about 80% of the overall underwriting, increased by 7% year

decreased by 59.5% year on year to JPY 24.08 billion from JPY

on year, showing a steady growth. By contrast, loan insurance

59.38 billion. Operating and administrative expenses increased

dropped by 16% year on year, as a result of a decline in projectby 6.3% year on year to JPY 7.66 billion from JPY 7.2 billion. As

finance, which was a continued trend from the previous year.

a result, a provision for contingency reserves of JPY 93.68 billion

primarily consisting of recoveries, grew by 407.9% year on

was recorded.

74

Annual Report FY2022

Annual Report FY2022

Financial Statements etc.
Balance Sheet for FY2022 ( As of March 31, 2023 )
( Millions of Yen )Amount( Assets )Account Title

Amount( Liabilities )Cash and bank deposits

859,091

Bank deposits

859,091

Outstanding claims reserves

953,059

Underwriting reserves

1,016,297

Government bonds

331,157

Unearned premiums

122,031

Municipal bonds

143,500

Contingency reserves

894,265

Corporate bonds

435,900

Foreign securities

42,501

Foreign reinsurance accounts payable3

20,469

Income taxes payable

3

Securities

Other liabilities

1,018,203
1,906

41,271885

Deposits received

29,293

Buildings

271

Unearned income

8,807

Equipment and fixtures

586

Accrued amount payable

2,529

Other tangible fixed assets

28

Other liabilities

Tangible fixed assets

637

Provision for employees’ bonuses

140

Software2,920

Provision for directors’ bonuses

10

Software in progress

1,008

Provision for employees’ retirement benefits

601

17,510

Provision for directors’ retirement benefits

21

4,926

Total liabilities

Reinsurance accounts receivable

19( Net assets )Foreign reinsurance accounts receivable272

Capital169,352

Capital surplus

625,553

Other assets
Accrued premiums

3,251

Accrued income

5,268

Deposits

2,174

Other assets

1,600

Deferred tax assets

158

1,855,099

Retained earnings
Other retained earnings
Retained earnings brought forward

625,553
(52)
(52)
(52)

Total shareholders’ equity

794,854

Total net assets

794,854

Total liabilities and net assets

1,855,099

FY2022 Financial Results

Total assets

Legal capital surplus

1,060,245

About NEXI and
Organizational Operation

Accounts receivable

Insurance Products

3,928

Intangible fixed assets

NEXI Activities

Receivables subrogated by paying claims

Insurance liabilities

NEXI Review of
Performance

Account Title( Millions of Yen )75

FY2022 Financial Results

Financial Statements etc.
Notes:
1

Significant accounting policies are as follows.

( 1 ) Standards and methods for valuation of securities are as
follows. Bonds held to maturity are valuated using theamortized cost method (straight-line method).
( 2 ) Depreciation of tangible fixed assets is calculated using thestraight-line method.
( 3 ) Amortization of intangible fixed assets is calculated using thestraight-line method. Software for internal use is amortizedbased on the straight-line method over the period of internaluse (five years).
( 4 ) Foreign-currency receivables and payables are converted
into Japanese yen at fiscal year-end exchange rates, andtranslation adjustments are recorded as profit or loss.
( 5 ) Provision for employees’ bonuses is recognized for thepayment of employees’ bonuses, based on the expectedamount to be paid at the end of the year.
( 6 ) Provision for directors’ bonuses is recognized for the 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 recognizedin preparation for the payment of employees’ retirement
allowance, based on the projected retirement benefit
obligation at the end of the year. Retirement benefit obligation
and retirement benefit expense are calculated based on thesimplified method whereby the requested amount to be paid
at the end of the year for voluntary retirement of all employees
is regarded as the company’s retirement benefit obligation.
( 8 ) Provision for directors’ retirement benefits is recognized in
preparation for the payment of directors’ retirement allowanceas 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 thepayment of large insurance claims due to political risks orother reasons, in accordance with Article 22 of the Trade andInvestment Insurance Act.

b. Financial instruments and risk
Securities are exposed to the fluctuation risks of interest
rates and of market prices.
c. Risk management for financial instruments
Market risk management
Regarding the fluctuation risks of interest rates, prices,and exchange rates associated with investments insecurities and time deposits, NEXI manages those risks
based on the fund management plans discussed by the
Board of Directors. The current state of managing theserisks is ascertained and controlled at the Risk Management
Group, Corporate Governance Department.
d.	S upplementary information on fair value of financial
instruments
The fair value of financial instruments is based on theirquoted market prices.
( 2 ) Fair value of financial instruments
The table below outlines carrying amounts shown on
the balance sheet, fair value, and differences of financial
instruments as of the end of the year. Notes to deposits areomitted because they are settled within a short term and thefair value approximates the book value.
( Millions of Yen )3

Bonds held to maturity
Assets

76

The status of financial instruments and fair value offinancial instruments are as follows.

Those withfair value notexceedingthe carrying
amountAnnual Report FY2022

953,059

967,312

14,254

953,059

967,312

14,254( Millions of Yen )Those withfair value
exceedingthe carrying
amounta. Policy on financial instruments
NEXI is engaged in the trade and investment insurance
business. Some of its surplus is invested in securities tostrengthen NEXI’s financial base. In addition, the surplus
from the trade and investment insurance business isinvested in securities, deposits, and other financial
instruments to the extent stipulated in Article 29 of theTrade and Investment Insurance Act.

Difference

Note 1. R egarding the bonds held to maturity, the table below
outlines carrying amount shown on the balance sheet, fairvalue and differences by type.

Significant components of deferred tax assets include
the disallowance of provision for employees’ bonuses,
provision for employees’ retirement benefits, and of
unpaid business taxes and business office taxes,
while the main component of deferred tax liabilities isretirement benefits liabilities translation adjustments.

( 1 ) Status of financial instruments

Fair value

Securities(10) Consumption tax and local consumption tax are accounted forusing the tax-excluded method.

2

Carrying amountshown onbalance sheet

Type

Carrying amountshown onbalance sheet

Fair value

Difference

Government bonds

285,967

310,907

24,940

Municipal bonds

11,60011,6044Corporate bonds

7,500

7,608

108

Foreign securities

5,116

5,184

67

Subtotal

310,183

335,302

25,119Government bonds

45,19043,464(1,727 )Municipal bonds

131,900

130,571(1,329 )Corporate bonds

428,400

422,883( 5,517 )Foreign securities

37,38535,093( 2,292 )Subtotal

642,875

632,010(10,865 )953,059

967,312

14,254Total

Annual Report FY2022

Note 2. Maturity analysis of financial assets( Millions of Yen )8

Securities( Millions of Yen )Bonds held tomaturity

61,385 150,367 164,197 469,700 102,500－

Receivables subrogated by paying claims ( political risk )Total

61,385 150,367 164,197 469,700 102,500－

Expected receivables subrogated by paying claims( political risk )－Transferred claims－

Accumulated depreciation of tangible fixed assets is
JPY 551 million.

5

The breakdown of outstanding claims reserves at theend of the year is as follows.

Pursuant to Article 7 of the Ministerial Ordinance Pertaining to the
Accounting of Nippon Export and Investment Insurance, the amount
expected to be recovered by exercising the right to reimbursement(excluding those for which there is no judicial decision or agreement
between the parties concerned) is deducted from the outstanding
claims reserves.
( Outstanding claims reserves )

( Millions of Yen )Amount expected to be recovered ( deducted )51( Net )

6

1,957

1,906

The breakdown of underwriting reserves at the endof the year is as follows.
( Millions of Yen )( Underwriting reserves )

133,170

Underwriting reserves for outward reinsurance related tothe above

11,139Net ( a )122,031

Underwriting reserves for other items ( b )Total ( a + b )7894,265
1,016,297

Net assets per share is JPY 52,990.27.

Cash and bank deposits, and deposits received
include the following amounts, respectively.
( Millions of Yen )Carrying amount shown on balance sheet
Cash and bank deposits

26,807

Deposits received

26,807

Cash and bank deposits shown above 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 “theFund” ), in accordance with the debt relief agreement between thegovernments of Japan and Cuba.
Deposits received represent the amount equivalent to the Fund.
This is because the use of withdrawals from the Fund is restricted
to activities including Cuban-peso denominated projects related
to the development of Cuba approved by the governments of thetwo countries, which means repayments made by the Fund’s users
to NEXI in Japanese yen is deemed as a partial recovery of thereceivables subrogated by paying claims ( political risk ).

10 Amounts are rounded off to the nearest unit.

About NEXI and
Organizational Operation

Unearned premiums ( before the deduction of underwriting
reserves for outward reinsurance )920,469Insurance Products

Outstanding claims reserves ( before the deduction of theamount expected to be recovered )Total

NEXI Activities

4

20,469NEXI Review of
Performance

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

Receivables subrogated by paying claims ( politicalrisk ), expected receivables subrogated by paying
claims ( political risk ) and transferred claims, and their
total are as follows.

FY2022 Financial Results

Total net assets, the basis for calculating net assets per share,
is JPY 794,854 million, and the full amount is related to commonshares. The number of common shares at the end of the year is 15
million.

77

FY2022 Financial Results

Financial Statements etc.

Statement of Income ( April 1, 2022 - March 31, 2023 )
( Millions of Yen )Account Title
Ordinary income
Underwriting income

116,632
30,201

Net premiums written

29,942Foreign exchange gains

259

Subrogation income

47,817

Investment income

38,353

Interest and dividends income

12,191

Foreign exchange gains

26,162Other ordinary income
Ordinary expenses

261
117,632

Underwriting expenses

109,883

Net claims paid

24,075

Commissions(173)

Provision for outstanding claims reserves

1,929

Provision for underwriting reserves

84,053

Provision for unearned premiums(9,629)Provision for contingency reserves

93,682

Subrogation expenses
Operating and administrative expenses
Other ordinary expenses
Other ordinary expenses

89
7,660
0
0

Ordinary loss

(1,000)Extraordinary income

1,000

Gain on government grants

78

Amount1,000

Income before income taxes－

Income taxes-current

30

Income taxes-deferred(11)

Total income taxes

19

Net loss(19)

Annual Report FY2022

Annual Report FY2022

Notes:
1( 1 ) The breakdown of net premiums written is as follows.
( Millions of Yen )Premiums written

31,516

Reinsurance premiums paid

(1,574)

Total

29,942( 2 ) The breakdown of net claims paid is as follows.
( Millions of Yen )Insurance claims paid

24,075－

Total

24,075Note 1. Insurance claims paid is calculated by deducting the amountrecovered of JPY 8,185 million from the amount paid of JPY
32,260 million.

( Millions of Yen )Recovery of receivables subrogated by paying
claims ( political risk )7,185Interest from receivables subrogated by paying
claims ( political risk )4,179

Recovery of receivables subrogated by paying
claims ( commercial risk )25

Interest from receivables subrogated by paying
claims ( commercial risk )268

Recovery of transferred claims

79

Recovery received

27,730Recovery received of overseas inward reinsurance

7,254

Other income from receivables subrogated by paying
claims－Foreign exchange gains ( subrogation income )

1,096

Total

( 3 ) The breakdown of commissions is as follows.

NEXI Activities

Reinsurance claims recovered( Subrogation income )

NEXI Review of
Performance( 6 ) T he breakdown of subrogation income and subrogation
expenses is as follows.

47,817( Millions of Yen )Commissions for agencies and others
Commissions for outward reinsurance

(176)

12

(173)

Debt recovery expenses ( underwritten )64

Recovery expenses ( inward reinsurance )13( Millions of Yen )Provision for unearned premiums ( before thededuction of underwriting reserves for outward
reinsurance )(9,144)

Provision for underwriting reserves for outward
reinsurance related to the above

485

Total ( a + b )(9,629)93,682
84,053( 5 ) T he breakdown of interest and dividends income is asfollows.
( Millions of Yen )Interest from bank deposits

5,704Interest and dividends from securities

6,487
－

Total

12,191

－

Total

89

2

Business with related parties is as follows.
( Millions of Yen )Type

EntityRatio ofAmount of Account atBalancevoting rights, RelationshipTransaction transactions
end of
2
with
party
title
etc.
year

Major
shareholder

MinistryofFinance

Directly
held 100%

Trade andGain oninvestment government
insurance
1administration grants

1,000

－

－

Transaction terms and decision policies of transaction terms, etc.
Note 1. The grants are provided to partially compensate for the impactthat debt deduction for heavily indebted poor countries ( HIPCs ),etc. has on the trade and investment insurance business.
Note 2. The amount of transactions does not include consumption tax,etc.

3 	Gain 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.

FY2022 Financial Results

Other interest and dividends

Loss on uncollected interest

About NEXI and
Organizational Operation

Provision for other underwriting reserves ( b )( Millions of Yen )Loss on bad debts ( commercial risk)( 4 ) The breakdown of provision for underwriting reserves ( figuresin parentheses are reversal of provision ) is as follows.

Net ( a )( Subrogation expenses )

Insurance Products

Total

3

4 	Net loss per share is JPY 1.28.
Net loss for the fiscal year, the basis for calculating net income
or loss per share, is JPY 19 million, with the full amount of theincome 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.

5 	Amounts are rounded off to the nearest unit.
79

FY2022 Financial Results

Financial Statements etc.

Statement of Changes in Shareholders’ Equity ( April 1, 2022 - March 31, 2023 )( Millions of Yen )Shareholders’ Equity
Capital surplus

Beginning balance

CapitalLegal capitalsurplus169,352

625,553

Retained earnings

Other retained
Total
earnings
shareholders’
Total retained
Total capital
equityearnings
surplusRetained earnings
brought forward

Total net
assets625,553

(32)

(32)

794,873794,873

－

(19)

(19)

(19)

(19)

Changes during the year
Net loss
－

－

－

(19)

(19)

(19)

(19)

169,352

625,553625,553

(52)

(52)

794,854794,854

Total change during the year
Ending balance

Notes:
1

Type and total number of issued shares, and type and number of treasury shares( Thousands of Shares )Number of shares asof April 1, 2022

Increase during the
fiscal year 2022

Decrease during the Number of shares as of
fiscal year 2022
March 31, 2023

Common shares

15,000－－15,000Total

15,000－－15,000Issued shares

Note: NEXI holds no treasury shares.

2

Share acquisition rights and treasury share acquisition rights
There are no applicable matters.

3

Dividends
There are no applicable matters.

80

Annual Report FY2022

Annual Report FY2022

Statement of Cash Flows ( April 1, 2022 - March 31, 2023 )
( Millions of Yen )AmountNEXI Review of
Performance

Account Title
Cash flows from operating activities
Premiums received

31,231

Insurance claims paid

(32,254)(3)

Commissions
Proceeds from collection of receivables subrogated by paying claims

60,517

Payment for allocation of collection from receivables subrogated by paying claims(4,067)

Payment for operating and administrative expenses(6,269)267

Subtotal

49,422

Interest and dividend income received

11,312NEXI Activities

Others(61)

Income taxes refund ( paid )Net cash provided by ( used in ) operating activities

60,673

Cash flows from investing activities(266,936)

Payments into time deposits
Proceeds from repayment of time deposits

241,171

Purchase of securities(106,359)
19,812

Total from asset management activities(112,312)( Total from operating and asset management activities )(51,639)

Purchase of tangible fixed assets(73)

Purchase of intangible fixed assets(998)

Insurance Products

Proceeds from sales and redemption of securities(1)

Others(113,384)

Net cash provided by ( used in ) investing activities
Cash flows from financing activities

1,000

Net cash provided by ( used in ) financing activities

1,000

Effect of exchange rate changes on cash and cash equivalents

About NEXI and
Organizational Operation

Proceeds from government grants received

4,972

Net increase ( decrease ) in cash and cash equivalents(46,739)

Cash and cash equivalents at the beginning of the year

642,094

Cash and cash equivalents at the end of the year

595,356

Notes:
1 The statement of cash flows to be submitted to the2 Cash and cash equivalents in the statement of cash

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

3 The reconciliation of the balance of cash and cash

equivalents at the end of the year and the amounts ofitems presented in the balance sheet is as follows.

As of March 31, 2023

FY2022 Financial Results

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

( Millions of Yen )Cash and bank deposits

859,091

Time deposit(236,928)

Other bank deposits＊(26,807)

Cash and cash equivalents at the end of the year

595,356＊ O ther bank deposits are not included in the scope of cash and cash
equivalents due to the following reason. In accordance with the debt relief
agreement between the governments of Japan and Cuba, the Cuban
government opened an account at Banco Nacional de Cuba under thename of “NEXI.” The use of withdrawals from the account is restricted
to activities including Cuban-peso denominated projects related to thedevelopment of Cuba approved by both governments, with the Fund’susers making a repayment of the equivalent amount in Japanese yen.

4 Amounts are rounded off to the nearest unit.

81

FY2022 Financial Results

Financial Statements etc.

Details of account items
1. Balance Sheet
Account item

Details

Receivable
subrogated bypaying claims

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

Accrued premiums

Accrued premiums associated with insurance application.

Reinsurance
accounts receivable

The accrued portion associated with inward reinsurance transactions with Japanese insurancecompanies.

Foreign reinsurance
accounts receivable

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

Accrued income

Total amount of accrued interests from securities and receivables subrogated by paying claims ( politicalrisk ) 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 thatare not yet made but the occurrence of events is already notified ( excluding notification of the delayin the performance of obligations ).

Unearned premiums

Of premiums written, the amount equivalent to liabilities to cover the remaining period of coverage atthe 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 basedon insurance contracts and others.

2. Statement of Income

82

Account item

Details

Net premiums written

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

Subrogation income( expenses )The item includes profit from recovery of receivables subrogated by paying claims, interest income, foreignexchange 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 recovered.

Commissions

The item includes commissions for outward reinsurance, agencies, and other sources.

Gain on government
grantsGrants received, related to matters including the exempted or waived claims, etc. deemed necessary to
fulfill international obligations under Article 36 of the Trade and Investment Insurance Act.

Annual Report FY2022

Issued: July 2023

Nippon Export and Investment Insurance

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
Email : info@nexi.go.jp

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