CGU and niche commercial insurer Assetinsure have launched a new vehicle to sell financial risk cover.

The joint venture company, Assetinsure Financial Products, will target the banking and finance sectors with a range of insurance products to help global companies secure finance - an increasingly difficult proposition in the post-subprime credit market.

Assetinsure, which is half-owned by investment company Babcock & Brown, will run the joint venture. It's expected the venture will benefit from CGU's AA credit rating.

Assetinsure CEO Peter Wedgwood says the company - to be run by two directors from CGU and two from Assetinsure - will focus on residual value insurance and credit enhancement cover.

Residual value insurance protects lessors against fluctuations in the market value of leased equipment such as aircraft, rolling stock and motor vehicle fleets. Credit enhancement is directed at securitisation and corporate credit risks.

Mr Wedgwood says both products reduce the level of risk when securing finance.

"With markets in the grip of a global credit squeeze, lenders are increasingly focused on the quality of their borrowers," he said. "Our products will help make it easier for companies to secure finance at more affordable rates."