Klapton launches a new surety product: Maritime Residual Value Guarantee

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Klapton Insurance Company Ltd (“Klapton”) launched its newest surety product, aimed to give marine vessel owners (and/or financiers) the ability to manage future asset value risk.

Klapton firmly believes, given the current economic environment and scarcity of traditional bank financing, that this product will remove one of the greatest risks to investors and financiers and hence enhance financing structures and provide more certainty to investment return calculations.

RVG products have been commonplace in the aviation industry for decades and, given the change in the marine sector’s financing dynamics, RVG arrangements are finding a niche in the shipping industry. The RVG product will predominantly be made available against ocean going vessels operating in the dry bulk and tanker sectors, but other vessels will be considered on their own merits.

Klapton is committed to this specialist market, demonstrated by its formation of their Maritime Committee earlier in 2019, and is confident that their niche and flexible surety product offering will provide much needed credit enhancement and protection which is lacking in the current maritime market place.

Initially, we will major in Residual Value Insurance and Charter Hire Guarantees and will develop the product offering, as the business evolves, in order to provide bespoke solutions to our clients.

For more details on this product offering please click on the button below.

For further enquiries please contact Russell Parker ( russell.parker@klapton.com ) and Douglas Newton ( douglas.newton@klapton.com )