MIGA, KUKE forge re/insurance collaboration to bolster Ukrainian trade & investment
The Multilateral Investment Guarantee Agency (MIGA) of the World Bank Group has signed a memorandum of understanding with KUKE, aimed at promoting trade and foreign investments by Polish companies in Ukraine and other countries.
Signed at the Ukraine Recovery Conference 2024, the agreement establishes a framework for joint projects, including insurance, parallel insurance, and reinsurance arrangements.
This move underscores Poland’s commitment to Ukraine’s reconstruction and aligns with MIGA’s strategy of partnering with public sector insurers due to the lack of private market insurance for war risks.
This cooperation builds on the 2023 Ukraine Recovery Conference in London, where the U.S. International Development Finance Corporation (DFC) and MIGA agreed to collaborate on insuring projects in Ukraine. Since then, DFC and MIGA have co-insured a manufacturing project in Ukraine, each covering approximately $25 million against political risks, including war risks, for a period of 15 years.
Hiroshi Matano, Executive Vice President at MIGA, stated, “During this time of immense difficulty caused by Russia’s invasion of Ukraine, we remain committed to expanding our support to the Ukrainian government and the private sector.”
Matano added, “Our insurance and reinsurance products have played a vital role in sustaining the Ukrainian economy’s resilience during the ongoing war and supporting much needed foreign investment.”
Katarzyna Kowalska, Vice President and CRO at KUKE, remarked, “The combination of our capabilities will strengthen the shield against political and war risk available to not only Polish companies but also entities using Poland as a hub for establishing or expanding their business in Ukraine.”
MIGA is also exploring reinsurance support for Ukrainian projects with other European export credit agencies. The Agency is collaborating with the Ukrainian government, development partners, and the international investment community to offer risk mitigation and market insights.
Simultaneously, Aon has recently partnered with the US DFC on a new $350 million insurance program designed to accelerate new capital investments and economic recovery in Ukraine.
