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World Bank Group Guarantees

Lloyd’s partnership with World Bank Group Guarantees

At New York Climate Week 2024, Lloyd’s announced a 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.

John Neal, Lloyd's CEO and Hiroshi Matano, MIGA Executive Vice President

The Multilateral Investment Guarantee Agency (MIGA)

MIGA’s primary mission is to promote Foreign Direct Investment (FDI) in developing countries through the provision of political risk insurance and credit enhancement to investors and lenders. By mitigating investment risks in developing countries, these guarantees play a central role in supporting economic growth.

The Lloyd’s market has been collaborating with MIGA for over 25 years, providing reinsurance for these guarantees. This reinsurance 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 FDI increases.

Lloyd’s continued collaboration with MIGA has facilitated the provision of guarantees to global projects that support economic growth, reduce poverty and improve quality of life. These guarantees have the power to unlock private capital for projects in developing countries tackling the toughest development challenges faced by these communities. Several of these projects also advance climate change mitigation and adaptation efforts in developing countries.

Case study: Banco do Brasil Sustainable Agriculture Financing

Banco do Brasil secured a US$1.2 billion MIGA guarantee for a loan to enhance the local lending operations for micro, small, and medium farmers engaged in no-till agriculture in Brazil. This is a sustainable agricultural practice, offering significant environmental benefits such as carbon sequestration and resilience against climate change.

With approximately 15 reinsurance partners involved, this initiative demonstrates how the reinsurance industry can mobilise private capital to empower local farmers and tackle pressing environmental and social challenges in Brazil's agricultural landscape, but also across the globe.