Hundreds of millions of pounds are exposed to the recent debt default in Mozambique, a development that could leave credit insurers vulnerable. The two largest lines are XL Catlin and Liberty Mutual Insurance Europe who have a reported $350mn-$400mn of Mozambique government-guaranteed credit insurance policies purchased by Credit Suisse and VTB in 2013 and 2014. Loans sold by Credit Suisse and VTB represent a number of Mozambique risks insured in the non-trade contract frustration market. It is thought that 10 syndicates are exposed to these loans on the Lloyd’s market slip. The loans are classified as debt belonging to the Mozambique government which is why a number of Lloyd’s syndicates are exposed. The Mozambique government failed to pay a $119mn instalment on one of these loans on 22 March.