Supporting Member Country ECAs: ICIEC endorse supportive reinsurance treaty with JLGC

Supporting Member Country ECAs: ICIEC endorse supportive reinsurance treaty with JLGC

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and the Arab Investment & Export Credit Guarantee Corporation (DHAMAN) have jointly signed a Quota Share Reinsurance Agreement with the Jordan Loan Guarantee Corporation (JLGC).

The agreement serves to solidify the deep and historical relationship the three entities have fostered over recent years – both at the transaction level and more strategically as members of the AMAN UNION. JLGC is the national Export Credit Agency (ECA) of Jordan, a member country served by both ICIEC and DHAMAN. Reinsurance is one of the main risk and capital management tools available to ECAs, allowing them to share risks amongst other insurance providers to scale up their capacity.

The objective of the tripartite agreement is to increase the transfer of risk capacity and technical expertise from ICIEC and DHAMAN to JLGC. As the national ECA, the treaty serves to benefit JLGC by supporting risk sharing between the three institutions, assisting JLGC in increasing its capacity, thus bolstering its developmental impact and strengthening the Jordanian economy. JLGC will also benefit from the transfer of knowledge and expertise from the two multilateral partners.

For ICIEC, the treaty is one of the many formalized partnerships that have further strengthened in the context of the Corporation’s COVID-19 response efforts. ICIEC CEO, Mr. Oussama Kaissi, claims, “ICIEC has an important level of cooperation with Jordanian partners, especially in the pharmaceutical and financial services sector, which are now ever more important. This agreement will help JLGC increase capacity in these areas, enhancing their capacity to support COVID-19 recovery. Reinsurance is one way that the Corporation is supporting national ECAs through the pandemic and its recovery period. Reinsurance treaties, such as this one, can be replicated to other interested national ECAs from ICIEC and DHAMAN member countries to help scale their capacity.”