Business Overview & Financial Data FY22

Business and Operational Review
Reinsurance
MIGA Financial Highlights
Business and Operational Review
Both the lingering effects of the COVID-19 pandemic and the war in Ukraine are reducing FDI into EMDEs. Despite some pickup in FDI in 2021 versus 2020, the recovery seems unlikely to last given the prevailing multiple global crises.
During FY22, the Agency directed its efforts toward helping clients address the severe and growing impacts of these crises and issued $4.9 billion in new guarantees in support of 54 projects. Although MIGA remained committed to the COVID-19 response during FY22, it also started redirecting its efforts toward facilitating FDI into developing countries and was able to support several highly impactful projects in its core strategic priority areas. Additionally, taking into account the war in Ukraine, inflation, and rising interest rates, in response to market demand, MIGA shifted its focus during the last quarter of FY22 toward assisting the financial sector. 
Both the lingering effects of the COVID-19 pandemic and the war in Ukraine are reducing FDI into EMDEs. Despite some pickup in FDI in 2021 versus 2020, the recovery seems unlikely to last given the prevailing multiple global crises.
During FY22, the Agency directed its efforts toward helping clients address the severe and growing impacts of these crises and issued $4.9 billion in new guarantees in support of 54 projects. Although MIGA remained committed to the COVID-19 response during FY22, it also started redirecting its efforts toward facilitating FDI into developing countries and was able to support several highly impactful projects in its core strategic priority areas. Additionally, taking into account the war in Ukraine, inflation, and rising interest rates, in response to market demand, MIGA shifted its focus during the last quarter of FY22 toward assisting the financial sector.
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Guarantee Portfolio Exposure
 
  Gross Guarantee Portfolio Exposure ($B) Net Guarantee Portfolio Exposure ($B)
FY18 21.2 7.9
FY19 23.3 8.3
FY20 22.6 9.2
FY21 23.0 9.1
FY22 24.4 8.9
PortfolioExposure
Reinsurance
Reinsurance
Since 1997, MIGA has successfully leveraged reinsurance as a tool to use its capital efficiently and manage the risk profile of its portfolio. The primary benefits of reinsurance accrue to MIGA’s clients-first, to the investors, who gain access to increased capacity to insure eligible projects in developing countries; and second, to client countries that benefit from higher FDI.
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The Agency continued to use reinsurance capacity, ceding $3.4 billion of new business to the reinsurance market during FY22 in line with the strategy of preserving capital to support growth. As of June 30, 2022, 62 percent of the outstanding gross portfolio was reinsured, up from 59 percent as of end FY21. Over the past five years, MIGA has increased the use of reinsurance in its guarantee portfolio, allowing the Agency to support its growth trajectory through increased guarantee capacity without the need for additional capital from its shareholders.
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Portfolio Reinsurance ($B) and Rate (%)
Portfolio Reinsurance Portfolio Reinsurance
 Outstanding Reinsurance
 Portfolio Reinsurance Rate
 
MIGA Financial Highlights
 
MIGA Financial Highlights
By fiscal year ($, millions) 2022 2021 2020 2019 2018
Gross premium income 229.4 239.3 232.3 237.9 210.1
Net premium incomea 116.3 121.3 117.1 115.1 104.1
Administrative expensesb 65.0 58.7 61.1 57.8 51.6
Operating incomec 51.2 62.6 56.0 57.3 52.5
Net income 27.6 81.5 57.2 82.4 40.9
Administrative expenses to net premium income ratio 56% 48% 52% 50% 50%
  1. Net premium income equals gross premium income and ceding commissions less premium ceded to reinsurers and brokerage costs
  2. Administrative expenses include expenses from pension and other post-retirement benefit plans.
  3. Operating income equals net premium income minus administrative expenses, including pension costs.
MIGA Financial Highlights
2022
2021
2020
2019
2018
Gross premium income 229.4
Net premium incomea 116.3
Administrative expensesb 65.0
Operating incomec 51.2
Net income 27.6
Administrative expenses to net premium income ratio 56%
Gross premium income 239.3
Net premium incomea 121.3
Administrative expensesb 58.7
Operating incomec 62.6
Net income 81.5
Administrative expenses to net premium income ratio 48%
Gross premium income 232.3
Net premium incomea 117.1
Administrative expensesb 61.1
Operating incomec 56.0
Net income 57.2
Administrative expenses to net premium income ratio 52%
Gross premium income 237.9
Net premium incomea 115.1
Administrative expensesb 57.8
Operating incomec 57.3
Net income 82.4
Administrative expenses to net premium income ratio 50%
Gross premium income 210.1
Net premium incomea 104.1
Administrative expensesb 51.6
Operating incomec 52.5
Net income 40.9
Administrative expenses to net premium income ratio 50%
Footnotes
  1. Net premium income equals gross premium income and ceding commissions less premium ceded to reinsurers and brokerage costs
  2. Administrative expenses include expenses from pension and other post-retirement benefit plans
  3. Operating income equals net premium income minus administrative expenses, including pension costs.
 
Capital Measures
By fiscal year ($, millions) 2022 2021 2020 2019 2018
Total economic capitala 759 768 756 717 685
Shareholders' equity 1,539 1,474 1,335 1,320 1,261
Operating capitalb 1,777 1,724 1,591 1,542 1,471
Total economic capital to operating capital ratio 43% 45% 48% 47% 47%
  1. Amount of capital used in support of the guarantee portfolio as well as the investment portfolio and operational risk. 
  2. Comprising paid-in capital, retained earnings/accumulated other comprehensive loss and insurance portfolio reserve, net. 
Capital Measures
2022
2021
2020
2019
2018
Total economic capitala 759
Shareholders’ equity 1,539
Operating capitalb 1,777
Total economic capital to operating capital ratio 43%
Total economic capitala 768
Shareholders’ equity 1,474
Operating capitalb 1,724
Total economic capital to operating capital ratio 45%
Total economic capitala 756
Shareholders’ equity 1,335
Operating capitalb 1,591
Total economic capital to operating capital ratio 48%
Total economic capitala 717
Shareholders’ equity 1,320
Operating capitalb 1,542
Total economic capital to operating capital ratio 47%
Total economic capitala 685
Shareholders’ equity 1,261
Operating capitalb 1,471
Total economic capital to operating capital ratio 47%
Footnotes
  1. Amount of capital used in support of the guarantee portfolio as well as the investment portfolio and operational risk. 
  2. Comprising paid-in capital, retained earnings/accumulated other comprehensive loss and insurance portfolio reserve, net. 
Leadership Messages
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Leadership Messages
MIGA FY22 Highlights
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MIGA FY22 Highlights
WBG Fiscal Year Data
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WBG Fiscal Year Data
Development Impact in FY22
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Development Impact
Priority Areas
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Priority Areas
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