Munich Re and the International Finance Corporation (IFC), a member of the World Bank Group, have concluded an agreement on an innovative risk-sharing facility. IFC will provide Munich Re with up to US$ 100m in capacity with the aim of fostering infrastructure development in Latin America.
For the next five years, the agreement will cover part of Munich Re’s reinsurance portfolio of surety bond exposures from selected construction, engineering and procurement contractors. Initially, it will focus on Brazil. By providing peak exposure relief at the reinsurance level, the facility will increase Munich Re’s capacity to provide reinsurance for surety bond exposures and thus support the further development of infrastructure in Brazil and other countries of Latin America.
Rashad Kaldany, IFC’s Vice President and Chief Operating Officer said: “Infrastructure is central to economic growth and improved living standards, particularly in Brazil. By providing this coverage, this facility will help companies overcome bottlenecks and allow for more efficient infrastructure development.”