IFC Mobilizes $3 Billion from Leading Global Insurers to Boost Real Sector Investments in Emerging Markets 

Washington D.C., December 18, 2024— IFC signed a $3 billion credit insurance policy with 14 global insurance companies under its Managed Co-Lending Portfolio Program (MCPP) to support investments in real sector projects, create jobs and drive sustainable economic growth in emerging markets.   

The program, MCPP Real Sector, leverages the risk-bearing capacity of leading insurers to enhance IFC’s ability to invest globally in real sectors such as energy, transport, telecoms, media and technology, metals and mining, water and waste management, manufacturing, agribusiness & forestry, health, education, life sciences, tourism, retail, construction and real estate. 

MCPP Real Sector is IFC’s first credit insurance facility targeting the real sectors of the economy. It offers insurers an opportunity to expand their coverage to transactions across various sectors and clients, delivering significant social, economic, and environmental benefits in the markets that IFC invests in.   

“This credit insurance policy reflects the strong collaboration between IFC and global insurers to address pressing development challenges,” said John Gandolfo, IFC Vice President and Treasurer, Treasury & Mobilization. “With their support, we can unlock additional investments for real sector projects that directly benefit communities, create jobs, and contribute to sustainable growth.” 

With this new program, the total capacity raised under all IFC MCPP platforms, the organization’s portfolio syndications platform for institutional investors and insurers, will exceed $19 billion.  

A consortium of prominent global insurers has joined MCPP Real Sector. They are Swiss Re, the Tokio Marine Group, AXIS Capital, AXA XL, SCOR, Munich RE, Everest, The Hartford, HDI Global, Liberty Specialty Markets, Aspen, Allianz Trade, Chubb and Sompo.  The program also demonstrates the growing role that private insurers can play to help mobilize financing to improve livelihoods and achieve long-term economic development. 

MCPP Real Sector builds on the success of previous iterations of the MCPP platform which were designed to support additional IFC lending to financial institutions. This new facility connects insurers to IFC’s diverse, high-quality pool of real economy investments in emerging markets.  

To date, MCPP has supported more than 329 IFC clients across 68 countries, demonstrating its impact on advancing sustainable and inclusive development.  

Quotes from Insurers

“We are proud to support the new MCPP facility promoting sustainable growth in emerging markets and to partner once again with IFC on private capital mobilization for maximum impact," said Veronica Scotti, Chairperson of Swiss Re Public Sector Solutions.

“HDI has worked closely with the IFC for many years, and we are proud to play a pivotal role in helping mobilize finance that supports emerging economies and local business growth,” said Stephanie Ogden, Chief Executive Officer, HDI Global UK and Ireland. “As a global partner in transformation, HDI helps clients to navigate a changing risk landscape. MCPP is a powerful example of this and demonstrates how the insurance industry can help address our most urgent global challenges.”  

“The MCPP is a proven, innovative, and highly efficient mechanism for channeling private sector insurance capacity and investment to development finance,” said Jeff Abramson, Underwriting Manager, Americas, AXA XL Political Risk and Credit. “Applying this capacity directly to projects and participants in the “real sectors” of emerging economies is a natural evolution of this approach and provides sound business opportunities for AXA XL while amplifying the positive impact that IFC financing has on people’s lives.”

“The MCPP is an innovative program designed to mobilize private capital to create a greater social impact while enabling private insurers to leverage IFC's expertise in loan origination and credit risk management,”  said Eiichi Hosojima, Senior Managing Executive Officer of Tokio Marine & Nichido Fire. “Tokio Marine Group recognizes the growing importance of supporting sustainable development in emerging markets, and this program aligns with our own purpose and values. We are pleased to support this new initiative.”

“Sompo is delighted to be expanding its partnership with IFC and assisting in its mission to support and empower corporate borrowers in developing nations. This collaboration supports IFC’s extensive and well-established expertise in this sector and we are pleased to be part of this endeavour,” said Matthew Woollam, Executive Vice President, Sompo.

“Global credit insurers like AXIS have a significant role to play in facilitating sustainable economic growth in emerging markets,” said Michael Silas, Head of Global Credit for AXIS Re. “Our industry’s partnership with international financial institutions, like the IFC, is longstanding, sustainable, increasing in scale and brings additional private sector capital to emerging markets.”