Surety Bonds and Guarantees

How Chubb can improve a company’s financial flexibility.

What does Chubb offer? Surety Guarantees/Bonds can replace or be used in lieu of: Chubb has long provided conventional surety bonds in the construction • Letters of Credit in favour of fronting and engineering sectors, permitting insurance carriers of compulsory companies to comply with their insurance programmes contractual obligation to provide third (e.g. Public Liability/Motor) party assurance that a contract will be • Bank Guarantees supporting completed satisfactorily. pension deficits and other pension related obligations Increasingly Chubb are providing bespoke • Letters of Credit / Bank Guarantees solutions for clients in virtually any sector supporting Decommissioning, and in a variety of scenarios where often a Restoration, or Closure and company would previously have arranged Abandonment obligations a bank guarantee or letter of credit. Surety • Bank guarantees provided to HMRC Bonds are often interchangeable with (Duty Deferment, Comprehensive bank guarantees and letters of credit, so Custom Guarantees, Tax Appeal), or wherever there is a bank guarantee in other government agencies such as EA place, we are likely to be able to replace and EPA. this with a surety bond. Example/Product The primary advantage of using Chubb is that bank lines are kept free for funding Pension Bond purposes, improving a company’s • Provides an alternative source financial flexibility. of security, reducing the level of contributions • Strengthens the employer covenant to support a recovery plan or revised investment strategy (retain cash to invest in the business with the peace of mind of a highly rated guarantor supporting the scheme) • Can potentially contribute to a lower PPF levy

UK4105-JD 01/19 What is a surety bond or guarantee? Why choose Chubb? Contact us

A surety bond (accessory to the contract) Technical expertise and experience Mike Berry or guarantee (autonomous) with the flexibility to structure T +44 (0)20 7173 7949 is a written obligation taken by a unique solutions. [email protected] guarantor (a bank or insurer) covering the beneficiary against the default of the AA rated by S&P – Exceptional financial Jamal Griffith bonded or guaranteed company. strength, managing risk conservatively T +44 (0)20 7173 7614 It secures the fulfilment of contractual, in both underwriting and investing. [email protected] commercial or legal obligations. A surety bond or guarantee is distinctive Substantial capacity provided of up to Nadia Havard from a traditional insurance contract hundreds of millions of pounds. T +44 (0)20 7173 7647 in that the guarantor holds recourse [email protected] rights against the bonded or guaranteed Reduce risk concentration of company and can recover the disbursed acceptable guarantee/credit providers David Garrahan funds under the instrument from the by diversifying range of providers T +44 (0)20 7173 7303 bonded or guaranteed company. (banks to insurers). [email protected]

How can I obtain a surety bond Worldwide capability to arrange the or guarantee? provision of bonds.

In order to get surety bonds or Extensive background in successfully guarantees from Chubb, a credit analysis placing bonds for large corporates. of the bonded or guaranteed company is made based on information such as the Competitive rates combined with latest consolidated financial reports; superior service. business plan and forecasts; terms and conditions of the credit lines in place.

All content in this material is for general information purposes only. It does not constitute personal advice or a recommendation to any individual or business of any product or service. Please refer to the policy documentation issued for full terms and conditions of coverage. Chubb European Group SE (CEG) is an undertaking governed by the provisions of the French insurance code with registration number 450 327 374 RCS Nanterre. Registered office: La Tour Carpe Diem, 31 Place des Corolles, Esplanade Nord, 92400 Courbevoie, France. CEG has fully paid share capital of €896,176,662. UK business address: 100 Leadenhall Street, London EC3A 3BP. Supervised by the French Prudential Supervision and Resolution Authority (4, Place de Budapest, CS 92459, 75436 PARIS CEDEX 09) and authorised and subject to limited regulation by the Financial Conduct Authority. Details about the extent of our regulation by the Financial Conduct Authority are available from us on request. You can find details about the firm by searching ‘Chubb European Group SE’ online at https://register.fca.org.uk/ UK4105-JD 01/19