MIGA-Lloyd's Syndicate Sign Agreement: Cooperative Underwriting Program
Washington, D.C., February 25, 1998 — The Multilateral Investment Guarantee Agency is pleased to announce that it signed an agreement with Brockbank Syndicate Management Ltd. of Lloyd's of London, under MIGA's Cooperative Underwriting Program (CUP). As part of the agreement, Brockbank will provide up to US$100 million in coinsurance per MIGA-insured transaction, on an ad hoc basis.
Mr. Roger Pruneau, MIGA's Vice President of Guarantees, stated that "the agreement with Brockbank is a significant landmark in MIGA's efforts to broaden its relations with its private sector insurance colleagues. It will enhance the effectiveness of the CUP as an instrument to provide political risk guarantees for investments in developing countries." The Brockbank agreement is part of MIGA's continuing initiative to foster closer relations with private insurers, through coinsurance and reinsurance arrangements. It will also help MIGA to better serve the needs of investors and facilitate additional investment in its developing member countries.
"Brockbank is very excited with the prospect of working with MIGA in meeting the growing demands of investors worldwide," commented Mr. Martin Reith, Brockbank's Director of Underwriting. Brockbank Syndicate Management Ltd. is one of the largest Managing Agencies at Lloyd's.
MIGA created the CUP two years ago as a form of coinsurance to encourage private insurers to enter markets where they may not have insured investments against political risks without the involvement of a multilateral institution. Under the program, MIGA acts as insurer-of-record for the entire amount at risk.
MIGA also works closely with other major private underwriters, including other Lloyds syndicates, the American International Group, Sovereign Risk, UNISTRAT, and Zurich American Political Risk. As part of these efforts MIGA is organizing a seminar for insurance brokers, entitled "MIGA in the Changing Investment Marketplace", on March 12, at the Lloyd's headquarters in London. Mr. Akira Iida, MIGA's Executive Vice President, Mr. Roger Pruneau, Vice President for Guarantees, and key speakers from the private insurance field will address the seminar. The seminar forms part of a three-week program starting March 9 in London, during which MIGA staff will be available to meet with prospective investors, insurance brokers and public and private insurers, to discuss its political risk program.