Denmark’s export credit agency (ECA) EKF has appointed Marsh as its facultative reinsurance broker for its medium and long-term commercial and political risks with private and public debtors.

Speaking to GTR, EKF’s deputy CEO Lars Caspersen says the new framework agreement forms part of the ECA’s wider strategy to provide the necessary capacity for its Danish exporter clients, whose demand for EKF guarantees is growing.

Marsh will take over the role as EKF’s facultative insurance broker from JLT Risk Solutions, who EKF had been working with since 2009. The change of broker comes as a result of a tender process, Caspersen says.

“We had a good and satisfactory co-operation with our former broker JLT. Going into a tender process we made the most relevant criteria for evaluating the brokers. We received very competitive and professional tenders and a fair and square process showed that Marsh was the best qualified. The criteria were a combination of qualifications, experience and also price.”

He says the main objectives of its facultative reinsurance broker remain the same, expect for one new task that Marsh will be helping to facilitate.

“Marsh’s important new task would be helping us run a tender process for every single transaction we ask for cover for in the private market, in order to secure compliance with the Danish requirements based on the EU legislation about buying financial services in the private market. Since we are a public institution, we have to comply to these rules.”

Guarantees for offshore wind projects account for a significant part of EKF’s total exposure, and are usually the main candidates for reinsurance.

In January earlier this year, EKF announced it had signed an agreement with 10 reinsurers, in which it sold off risk on more than 20 per cent of its total guarantee exposure of DKK67bn (€9bn). This will improve EKF’s capital ratio and allow it to release an estimated DKK2bn (€300mn) annually.