A desired increase in Australian market share is at the root of an agreement between insurance underwriting agency Dexta Corporation and Coface to transfer Dexta’s trade credit business.

Under the new arrangement, a new Coface subsidiary, Coface Services (Australia) Pty Ltd, will acquire and operate the trade credit business as an authorised representative of Dexta, operating from Dexta’s Sydney offices. Staff currently working within the trade credit function will remain as part of the new entity, with current unit manager James Melrose continuing in his role.

Dexta CEO Bob Lee says the transfer is part of a strategy to expand the business and develop its market presence. “This is a strategic move by Dexta and Coface to enable them to better service their Australian customers, using the global capabilities and expertise of the Coface group and the local infrastructure and market knowledge of Dexta,” he said.

Coface, reportedly the world’s largest export credit insurer, is a subsidiary of Natexis Banques Populaires and Groupe Banque Populaire, which has a total regulatory capital of 12.2 billion euros. Coface has been Dexta’s partner in Australian trade credit insurance since 2000.