REARDON risks coverage provides protection against losses arising from a government’s breach or repudiation of a contract with an investor through nationalization and confiscation. This guarantee provides cover against potential political exposure risks, leading to defaults in credit guarantees or trade finance guarantees, a concession or a power purchase agreement. This guarantees against expropriation, protection against losses arising from certain government actions that may reduce or eliminate ownership of, control over, or rights to the insured investment. Coverage is available on a limited basis for partial expropriation (e.g., confiscation of funds or tangible assets).

In the case of total expropriation of equity investments, compensation to the insured party is based on the net book value of the insured investment. For expropriation of funds, READON ensures the payment of the insured portion of the blocked funds. For loans and loan guarantees, REARDON can insure the outstanding principal and any accrued and unpaid interest. Compensation is paid upon assignment of the investor’s interest in the expropriated investment (e.g., equity shares or interest in a loan agreement) to REARDON.