Financial Highlights

Financial Highlights
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Business and Operational Review
Guarantee Portfolio Exposure
As global growth stabilized at a rate insufficient for progress on key development goals, threatening economic development, MIGA delivered a program of $8.2 billion in new guarantees in FY24. This year, of the 40 projects supported by the institution, 95 percent addressed at least one of the strategic priority areas, namely, IDA-eligible and FCS countries and climate finance. As of June 30, 2024, MIGA’s gross guarantee exposure stood at $31.5 billion and net guarantee exposure at $10.3 billion.
 
Reinsurance
Since 1997, MIGA has employed 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 countries that benefit from larger amounts of foreign direct investment (FDI).
MIGA continues to make use of the reinsurance market, ceding $5.5 billion of new business to its reinsurance partners during FY24 in line with the strategy of preserving capital to support growth. As of June 30, 2024, $20.7 billion, or 66 percent, of the outstanding gross portfolio was reinsured, up from 65 percent as end of FY23.
Portfolio Reinsurance ($B) and Rate (%)

Board-Approved Limit (70%)

Graph
Financial Results
By fiscal year (US$, millions)20202021202220232024
Gross premium income232.3239.3229.4245.0272.3
Net premium income*117.1121.3116.3123.9130.5
Administrative expenses**61.158.765.069.673.7
Operating income***56.062.651.254.356.9
Net income57.281.527.7139.4179.5
Administrative expenses
to net premium income ratio		52%48%56%56%57%
  • Net premium income equals gross premium income and ceding commissions less premium ceded to reinsurers and brokerage costs.
  • Administrative expenses include expenses from pension and other post-retirement benefit plans.
  • Operating income equals net premium income minus administrative expenses, including pension costs.
MIGA Financial Highlights
2024
2023
2022
2021
2020
Gross premium income272.3
Net premium income*130.5
Administrative expenses**73.7
Operating income***56.9
Net income179.5
Administrative expenses to net premium income ratio57%
Gross premium income245.0
Net premium incomea123.9
Administrative expensesb69.6
Operating incomec54.3
Net income139.4
Administrative expenses to net premium income ratio56%
Gross premium income229.4
Net premium income*116.3
Administrative expenses**65.0
Operating income***51.2
Net income27.7
Administrative expenses to net premium income ratio56%
Gross premium income239.3
Net premium income*121.3
Administrative expenses**58.7
Operating income***62.6
Net income81.5
Administrative expenses to net premium income ratio48%
Gross premium income232.3
Net premium income*117.1
Administrative expenses**61.1
Operating income***56.0
Net income57.2
Administrative expenses to net premium income ratio52%
  • *Net premium income equals gross premium income and ceding commissions less premium ceded to reinsurers and brokerage costs.
  • **Administrative expenses include expenses from pension and other post-retirement benefit plans.
  • ***Operating income equals net premium income minus administrative expenses, including pension costs.
Capital Measures
By fiscal year (US$, millions)20202021202220232024
Total economic capital*756768759773811
Shareholders' equity1,3351,4741,5391,7061,892
Operating capital**1,5911,7241,7771,9232,103
Administrative expenses 
to net premium income ratio		47.5%44.5%42.7%40.2%38.6%
Risk capital***1,0011,0541,0831,0921,140
Risk capital/operating capital62.9%61.1%61.0%56.8%54.2%
  • Amount of capital used in support of the guarantee portfolio as well as the investment portfolio and operational risk.
  • Comprising paid-in capital, retained earnings / accumulated other comprehensive income / (loss) and insurance portfolio reserve, net.
  • Risk metric and defined as the sum of total economic capital and buffer capital, with the latter computed using a stress testing tool developed around multiple macroeconomic and country-specific scenarios.
Capital Measures
2024
2023
2022
2021
2020
Total economic capital*811
Shareholders’ equity1,892
Operating capital**2,103
Administrative expenses to net premium income ratio38.6%
Risk capital***1,140
Risk capital/operating capital54.2%
Total economic capital*773
Shareholders’ equity1,706
Operating capital**1,923
Total economic capital/operating capital (%)40.2%
Risk capital**1,092
Risk capital/operating capital56.8%
Total economic capital*759
Shareholders’ equity1,539
Operating capital**1,777
Administrative expenses to net premium income ratio42.7%
Risk capital***1,083
Risk capital/operating capital61.0%
Total economic capital*768
Shareholders’ equity1,474
Operating capital**1,724
Administrative expenses to net premium income ratio44.5%
Risk capital***1,054
Risk capital/operating capital61.1%
Total economic capital*756
Shareholders’ equity1,335
Operating capital**1,591
Administrative expenses to net premium income ratio47.5%
Risk capital***1,001
Risk capital/operating capital62.9%
  • * Amount of capital used in support of the guarantee portfolio as well as the investment portfolio and operational risk.
  • ** Comprising paid-in capital, retained earnings / accumulated other comprehensive income / (loss) and insurance portfolio reserve, net.
  • ***Risk metric and defined as the sum of total economic capital and buffer capital, with the latter computed using a stress testing tool developed around multiple macroeconomic and country-specific scenarios.
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