Table 1: ECGD Exposure by Main Area of Risk
Financial Year
Total
Parallel
Business Cover
% of Total
(largely
Business
Cash Business (Excluding
% of Total
Other
Local
Business Cost
% of Total Business
Local
Extended
Costs Risk
Risk
Endorsement*)
£m
£m
£m
£m
1986/87 2,537 1987/88 1,647
30.3
1.19%
43.8
1.72% 37.8
1.49%
0.862
0.05%
92.9
5.6%
4.24
0.25%
1988/89 2,053
16.7
0.81%
7.5
0.36%
1.99
0.10%
1989/90 1,890
10.86
0.57%
42
2.2%
2.41
0.13%
1990/91 2,254
3.15
0.13%
0.60
0.02%
4.61
0.20%
*Extended Risk
endorsement business (which totalled £168m in the 1990/91 Financial Year its only full year of operation) has been excluded from this table in view of its future inclusion in amounts 'set aside' for 'Door 4' business. However, it is worth noting that during the 1990/91 financial year such business amounted to £168m or 7.45% of total business.
Comparison
8
The best way, perhaps, to assess the impact of the proposed... weighting system is to look how the outturn against the 1991/92: budget would have been affected by the new proposals. The position on medium term is not affected, and so we have omitted the figures from the comparison below. But we have added in (for the comparison) some business by way of Door 4 in order also to give a feel for how next year's budget might be affected by such business Table 2 below sets out the comparative figures.
Table 2 Comparative Budget Position Under Current and Proposed
Arrangements
CURRENT ARRANGEMENTS
Global
Current
Budget
Commitments
£m
£m
1,700
1.486
Balance Available
under GBB
£m
213
NEW APPROACH
Type of Risk
Amount £m
Weighting %
Weighted Amount
£m
*'Cash' Business
50
25%
12.5
200.5
(Parallel and
Cash)
'Door 4' Business 900
25%
225
(24.5)
Bond Risk
198
5%
9.9
(34.4)
*Annual average over the last five years.
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