Lloyd's has a great relationship with the World Bank Group

Lloyd's has partnered with the World Bank Group's Multilateral Investment Guarantee Agency (MIGA), re-accrediting the agency to increase its investment guarantee capacity.

This formal meeting reflects a renewed commitment to improving sustainable development outcomes by expanding the World Bank Group's commitments, building on a partnership that has spanned more than two and a half years.

Accordingly, Banco do Brasil SA will receive a $1.2 billion guarantee from MIGA. This guarantee will repay loans aimed at supporting small, medium and small farmers engaged in no-till farming and other climate-smart farming methods, which contribute to carbon sequestration and strengthen climate resilience. The program is supported by private funds raised from 15 insurance partners.

An important part of MIGA's plans is its management of the World Bank Group Guarantee Platform, with the aim of scaling annual guarantee issuance to $20 billion by 2030. The participation of insurance partners, such as those in the Lloyd's market, will be essential in achieving this objective.

Over the years, the collaboration between Lloyd's and MIGA has supported global projects designed to stimulate economic development, eradicate poverty, and improve living standards. It is noteworthy that many efforts have also contributed to climate change mitigation and adaptation efforts in developing countries.

In fiscal year 2024 alone, MIGA has supported 30 projects in 22 countries, each addressing climate mitigation or adaptation.

Commenting on the formality of the Lloyd's-MIGA partnership, Lloyd's chief executive John Neal (pictured) said: “Partnership is a hallmark of Lloyd's market, and through our ongoing partnership with MIGA, the insurance industry has (re)helped projects around the world that have a real impact to local and national communities that need it most.

“By providing financial security through these loans, we can help ensure that this project can continue for decades to come.”

Echoing Neal's sentiments, MIGA senior vice president Hiroshi Matano commented: “MIGA's long-term partnership with the Lloyd's marketplace has brought significant benefits to investors and participating countries.

“Investors have been able to access large levels of financing for projects in developing countries, and participating countries have benefited from high levels of foreign investment. We look forward to many more years of cooperation.”

What do you think about this story? Share your thoughts in the comments below.