Aon and EBRD expand Ukraine war risk facility to €150m as MS Amlin raises its share

Aon and the EBRD said on 13 October that the Ukraine Recovery and Reconstruction Guarantee Facility (URGF), which Aon manages, will grow from €110m to €150m. Under the structure, the EBRD gives reinsurer MS Amlin a guarantee against losses on war-related risks written by participating Ukrainian insurers. Aon said the facility has so far provided more than €500m of reinsurance cover for goods and vehicles under nearly 10,000 policies.

Two insurers join the scheme: UNIVERSALNA, part of Canada's Fairfax Financial Group, and USG, part of Vienna Insurance Group. They sit alongside INGO, Colonnade and UNIQA. Cover already included inland cargo, motor vehicle damage and railway rolling stock. It now extends to the transport and storage of gas-related assets, and a new line covers inventory held in temporary warehouse storage.

Global Reinsurance reported that MS Amlin is renewing its existing €80m participation and adding capacity, which takes its total support for the facility to €130m. Aon said premiums have so far exceeded reported claims and that MS Amlin has not called on the EBRD guarantee.

France, the United Kingdom, Norway, Switzerland and the Taiwan Business–EBRD Technical Cooperation Fund back the facility. The added capacity has donor cover from the European Union under its Ukraine Investment Framework. Aon linked the expansion to intensifying Russian attacks on energy, transport and logistics infrastructure and a renewed blockade of Black Sea ports. Aon chief executive Greg Case said war risk insurance is "central to sustaining investment" in Ukraine.