Business Overview & Financial Data FY23

Guarantee Portfolio Exposure
In FY23, as multiple global crises continued to threaten economic development, MIGA delivered a program of $6.4 billion in new guarantees, the most in a year since the Agency was founded. This year, almost all of MIGA’s projects supported at least one of its three priority areas: 27 percent of gross issuances went to IDA-eligible countries, 19 percent went to fragile and conflict-affected countries, and 28 percent of the total guaranteed investment of the projects contributed to climate finance. MIGA’s gross outstanding exposure stands at almost $28 billion and net exposure at $9.5 billion.
 
  Gross Guarantee Portfolio Exposure ($B) Net Guarantee Portfolio Exposure ($B)
FY19 23.3 8.3
FY20 22.6 9.2
FY21 23.0 9.1
FY22 24.4 9.0
FY23 27.9 9.5
 
ReinsuranceReinsurance
Reinsurance

Since 1997, MIGA has successfully used 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, which benefit from larger amounts of foreign direct investment (FDI).

The Agency continues to make use of the reinsurance market, ceding $5 billion of new business to its reinsurance partners during FY23 in line with the strategy of preserving capital to support growth. As of June 30, 2023, 64.6 percent of the outstanding gross portfolio was reinsured, up from 61.9 percent in FY22.

Portfolio Reinsurance ($B) and Rate (%)
Portfolio Reinsurance
 Outstanding Reinsurance
 Portfolio Reinsurance Rate
MIGA Financial Highlights
Financial Results
By fiscal year (US$, millions) 2023 2022 2021 2020 2019
Gross premium income 245.0 229.4 239.3 232.3 237.9
Net premium incomea 123.9 116.3 121.1 117.1 115.1
Administrative expensesb 69.6 65.0 58.7 61.1 57.8
Operating incomec 54.3 51.2 62.6 56.0 57.3
Net income 139.5 27.6 81.5 57.2 82.4
Administrative expenses
to net premium income ratio		 56% 56% 48% 52% 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
2023
2022
2021
2020
2019
Gross premium income 245.0
Net premium incomea 123.9
Administrative expensesb 69.6
Operating incomec 54.3
Net income 139.5
Administrative expenses to net premium income ratio 56%
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%
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 (US$, millions) 2023 2022 2021 2020 2019
Total economic capitala 773 759 768 756 717
Shareholders' equity 1,706 1,539 1,474 1,335 1,320
Operating capitalb 1,923 1,777 1,724 1,591 1,542
Total economic capital 40% 43% 45% 48% 47%
Risk capitalc 1,092 1,083 1,054 1,001 -
Risk capital/operating capital 56.8% 61.01% 61.1% 62.9% -
  • a. Amount of capital used in support of the guarantee portfolio as well as the investment portfolio and operational risk. 
  • b. Comprising paid-in capital, retained earnings/accumulated other comprehensive loss and insurance portfolio reserve, net. 
  • c. Risk metric introduced in FY20 and defined as the sum of total EC and buffer capital, with the latter computed using a stress testing tool developed around multiple macroeconomic and country-specific scenarios. 
  • — = not available
Capital Measures
2023
2022
2021
2020
2019
Total economic capitala 773
Shareholders’ equity 1,706
Operating capitalb 1,923
Total economic capital/operating capital (%) 40%
Risk capitalc 1,092
Risk capital/operating capital 56.8%
Total economic capitala 759
Shareholders’ equity 1,539
Operating capitalb 1,777
Total economic capital/operating capital (%) 43%
Risk capitalc 1,083
Risk capital/operating capital 61.0%
Total economic capitala 768
Shareholders’ equity 1,474
Operating capitalb 1,724
Total economic capital/operating capital (%) 45%
Risk capitalc 1,054
Risk capital/operating capital 61.1%
Total economic capitala 756
Shareholders’ equity 1,335
Operating capitalb 1,591
Total economic capital/operating capital (%) 48%
Risk capitalc 1,001
Risk capital/operating capital 62.9%
Total economic capitala 717
Shareholders’ equity 1,320
Operating capitalb 1,542
Total economic capital/operating capital (%) 47%
Risk capitalc -
Risk capital/operating capital -
Footnotes
  • a. Amount of capital used in support of the guarantee portfolio as well as the investment portfolio and operational risk. 
  • b. Comprising paid-in capital, retained earnings/accumulated other comprehensive loss and insurance portfolio reserve, net. 
  • c. Risk metric introduced in FY20 and defined as the sum of total EC and buffer capital, with the latter computed using a stress testing tool developed around multiple macroeconomic and country-specific scenarios. 
  • — = not available
Leadership Messages
Leadership Messages
Leadership Messages