ICIEC reports its landmark year for Islamic insurance in 2022
2022 was a banner year for the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), the insurance arm of the Islamic Development Bank (IsDB) Group, as it was a year of “fostering growth and regeneration amid the new global paradigm.” That new paradigm provided headwinds from various factors, including the ongoing war in Ukraine and the continued impact of the COVID-19 pandemic. Even so, ICIEC was able to up its support of trade and to increase direct investment in its Member States. In the meantime, the Corporation also maintained its focus on achieving sustainable development in the longer term.
This was done through supporting projects that contribute to achieving the UN's Sustainable Development Goals (SDGs) and implementing ESG-related transactions. In addition, ICIEC maintained its role as a key, trusted partner for international exporters, financial institutions, and investors.
You are invited to watch this video to see how ICIEC supported significant business volumes globally, with climate finance and supporting food security. It also shows how ICIEC covered transactions in a wide range of sectors such as infrastructure finance, healthcare, and imports of essential products along with large infrastructure projects (both in traditional and renewable energy) and transport.
ICIEC 2022 highlights include:
- Despite the challenging economic backdrop, ICIEC boosted its support to as many as 37 of its Member States
- Upping business insured by 19% over the year to cover US$11.64 billion
- Of that amount, US$9.6 billion supported trade, and US$2.02 billion supported foreign direct investment
- New insurance commitments went up nearly one-third during the year to US$4.0 billion, the largest share (60%) of which was short-term commitments.
- ICIEC retained its strong credit rating for the 15th year running and welcomed a new member, the Maldives, as its 48th Member State.
Some of ICIEC’s most impactful deals in 2022 included backing ESG-related infrastructure projects in Uganda (underpinning development across water, electrification, education, agriculture, and healthcare sectors).
ICIEC supported Egypt’s energy imports during the pandemic, highlighting the critical role of Islamic finance in realizing the energy transition and prioritizing natural gas as a transitional fuel in the wake of the pandemic and war in Ukraine.
ICIEC also boosted Agri commodity trade across the Member States (in particular, insuring FIM Bank, Malta, Incomlend Singapore, and Bank of Africa UK for their US$95 million facilities to support trade transactions in various countries). The Bank Master Policy insurance offered to non-member state banks is expected to increase strategic exports/imports from/into Member States for fertilizers, petrochemicals, steel, and Agri commodities.
ICIEC was instrumental in supporting Turkmenistan’s transport infrastructure projects, Uzbekistan's hydro-energy power sector, and Indonesia’s critical minerals sector.
Contributing to SDGs at the core of activities
The Corporate Net Results for 2022 amounted to a surplus of $11 million, representing a 19% improvement year-on-year. Gross Written Premiums witnessed a 39% increase, and investment income improved by 49% in 2021). ICIEC demonstrated strong performance against all Key Performance Indicators and continued pursuing UN Sustainable Development Goals (SDGs). ICIEC pledged significant volumes to IsDB Group’s Food Security Response Program (FSRP), pledging US$500 million in insurance capacity over three and a half years (July 2022 to end 2025).
ICIEC also continued to cement productive partnerships over the year, including collaboration agreements with institutions including NEXI, Saudi EXIM, Elsewedy Electric, Africa Finance Corporation, InsuResilience, Afreximbank, AlRajhi International for Investment, NEPAD, Guarantco, among others.
“As a trusted partner of international exporters, financial institutions, and investors, ICIEC facilitates business opportunities for its stakeholders, covering transactions in various sectors like infrastructure, healthcare, and food security,” says CEO Oussama Abdul Rahman KAISSI in the Annual Report. "The Corporation's success is attributed to its team of professionals, the IsDB Group entities, and the businesses in its Member States that continue to push for impactful collaborations."
To read more about the highlights of ICIEC’s achievements last year, the annual report is available at Annual Report Single 2022 - ICIEC - The Islamic Corporation for the Insurance of Investment and Export Credit (isdb.org)
