DFC Commits $50 Million in New Political Risk Insurance to Expand War Insurance for Businesses in Ukraine

WARSAW, Poland - The U.S. International Development Finance Corporation Head of Investments Agnes Dasewicz today announced DFC will provide $50 million in political risk insurance (PRI) for a new reinsurance facility to ARX, a Ukrainian subsidiary of Fairfax Financial Holdings Limited, to support companies in Ukraine. The transaction was brokered by American insurer Aon.

The facility will create a portfolio of war risk insurance policies for companies operating in Ukraine, support ARX in expanding its war risk insurance offering in Ukraine, and unlock more than $200 million in new coverage for static assets in Ukraine.

With the support of DFC's PRI, the reinsurance will allow ARX to provide more comprehensive coverage to businesses operating in Ukraine and help build investor confidence while reducing investment risk in Ukraine during the ongoing conflict.

"In collaboration with the private sector, DFC is building investor confidence where it's needed most and mobilizing the capital required to strengthen Ukraine's economy today and into the future. DFC's political risk insurance is providing vital support to the Ukrainian people and their economy as we work towards a brighter and more prosperous future for the country," said DFC Head of Investments Dasewicz.

First Deputy Chairman of the Board of ARX Maksym Mezhebytskyie, said, "We are also confident that the historic decision of DFC will be a signal for the international reinsurance market and will lead to the involvement of international commercial reinsurers in reinsurance of war risks from Ukraine."

"Aon's work with the U.S. International Development Finance Corporation is unlocking and accelerating investment in Ukraine at a time when the need is most acute," said Aon CEO Greg Case. "This groundbreaking facility will enable the local insurance industry to appropriately price risk and draw much needed new capital into Ukraine, while creating capacity and capability in the country to support reconstruction."

DFC recognizes that the private sector is critical to Ukraine's recovery and that Russia's invasion has created uncertainty in the country's investment environment. DFC has taken steps to help drive capital to the private sector in Ukraine, leveraging the agency's unique tools to build investor confidence in the country.

DFC's PRI is one of several financial tools that the agency is employing in Ukraine, where its total portfolio of $1.7 billion will help sustain Ukraine's economic recovery and position the country for reconstruction.

This announcement builds on DFC's portfolio of investments in Ukraine, including a $250 million loan to strengthen food security, $25 million in PRI to help those injured in the conflict, and more than $200 million to support expanded financing for Ukrainian small businesses.

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The U.S. International Development Finance Corporation (DFC) partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest across sectors including energy, healthcare, infrastructure, agriculture, and small business and financial services. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.