Lloyd’s CEO, John Neal, said, “Collaboration is the hallmark of the Lloyd’s market, and through our ongoing partnership with MIGA, the (re)insurance industry has facilitated projects around the world which are having a tangible impact on the local and national communities that need it most. By providing financial security for these loans, we can help to ensure that this work can continue for decades to come.”
New York: Lloyd’s, the world’s leading marketplace for insurance and reinsurance, has today announced a formal partnership with the World Bank Group’s Multilateral Investment Guarantee Agency (MIGA), which builds on over 25 years of collaboration between the two parties and emphasises a commitment to drive sustainable development outcomes through World Bank Group guarantees.
At a flagship event in Manhattan today as part of a programme of New York Climate Week activity, it was also announced that Banco do Brasil S.A. is to receive a $1.2 billion MIGA guarantee for a loan to support local lending operations for micro, small, and medium farmers engaged in no-till agriculture and other climate-smart agricultural practices offering carbon sequestration and climate resilience benefits.
The private capital mobilisation is supported by 15 reinsurance partners.
The reinsurance provided by the Lloyd’s market allows MIGA to leverage its investment guarantee capacity, enabling investors to secure larger levels of coverage for projects in developing countries, benefitting host countries as productive foreign investment grows.
MIGA is now housing the World Bank Group Guarantee Platform, aiming to boost annual guarantee issuance to $20 billion by 2030. Collaboration with reinsurance partners will be critical to the success of this initiative.
Lloyd’s CEO, John Neal, said, “Collaboration is the hallmark of the Lloyd’s market, and through our ongoing partnership with MIGA, the (re)insurance industry has facilitated projects around the world which are having a tangible impact on the local and national communities that need it most. By providing financial security for these loans, we can help to ensure that this work can continue for decades to come.”
Hiroshi Matano, MIGA Executive Vice President, said,“MIGA’s long-running collaboration with the Lloyd’s marketplace has brought significant benefits to both investors and host countries. Investors have gained access to larger levels of coverage for projects in developing countries, and host countries have benefited from higher levels of productive foreign investment. We look forward to many more years of partnership.”
Lloyd’s continued work with MIGA has facilitated the provision of guarantees to global projects that support economic growth, reduce poverty, and improve quality of life. Many of these projects have also advanced climate change mitigation and adaptation efforts in developing countries.
Over the last year alone (FY24), MIGA issued guarantees supporting climate change mitigation or adaptation in 30 projects and across 22 countries.
Formalising the longstanding partnership between Lloyd’s and MIGA emphasises the power of cross-sector collaboration in driving sustainable development outcomes, with strategic alliances such as this crucial to addressing global issues and future challenges in development finance and risk mitigation.