MS Amlin binds Ukraine reinsurance facility developed with Aon & EBRD

Lloyd’s global insurer and reinsurer MS Amlin has committed up to €110 million in reinsurance capacity over five years to support war risk policies underwritten by three Ukrainian carriers, via a scheme developed in partnership with global broking group Aon and the European Bank for Reconstruction and Development (EBRD).

This €110 million Ukraine Recovery and Reconstruction Guarantee Facility was announced late last year, and MS Amlin has now bound the innovative reinsurance scheme that could provide Ukrainian SMEs with up to €1 billion in cover annually.

The re/insurer has committed €80 million in reinsurance capacity under the scheme, increasing to €110 million over five years to support war risk policies underwritten by INGO, Colonnade, and UNIQA, three Ukrainian insurers.

The EBRD has backed the scheme, which enables MS Amlin to transfer the exposure off its balance sheet.

The aim of the scheme is to revitalise the country’s war risk insurance market amid Russia’s ongoing invasion. It’s hoped the landmark reinsurance scheme will enable local carriers to start offering inland cargo and transport cover for SMEs.

Typically, these war risk policies are short-term, so the facility is able to recycle capital, potentially extending the coverage for multiples of the guarantee amount.

According to the EBRD, the facility could provide cover for up to €1 billion worth of goods and vehicles annually, equal to €5 billion over the five-year period.

It was reported previously that the scheme will initially cover inland cargo, motor vehicle damage, and railway rolling stock, with the flexibility to expand to a broader range of assets based on evolving demand.

The UK, France, Norway, and the Taiwan Business-EBRD Technical Cooperation Fund have all initially supported the scheme, while the European Union and Switzerland have also pledged contributions, with further donor support expected to expand the EBRD guarantee in the future.

As the conflict in Ukraine continues, this new facility aims to improve access to insurance and ultimately stimulate business activity and economic growth.

“Expanding access to insurance is critical for supporting Ukraine’s SMEs and overall economy. By addressing a gap in reinsurance, this scheme will help boost business confidence, protect supply chains, and drive economic growth. The facility highlights how specialist insurers can unlock investment in high-risk regions and demonstrates the key role of public-private partnerships in rebuilding Ukraine. By leading the way on this facility, we aim to attract additional market capacity, vital for Ukraine’s long-term reconstruction and recovery,” said Martin Burke, MS Amlin’s Chief Underwriting Officer.

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