MSIG and IFC Ink Landmark $6B Deal to Fuel Emerging Market Growth

TOKYO and NEW YORK – February 24, 2026 – In a landmark move to channel private capital toward global development, insurance giants MSIG USA and Mitsui Sumitomo Insurance Company, Limited (MSI Japan) have partnered with the International Finance Corporation (IFC) to establish a new $6 billion credit insurance facility. The initiative is designed to unlock up to $10 billion in new lending for small and medium-sized enterprises (SMEs) and other vital sectors in emerging economies.

This major partnership, announced today, leverages MSIG's formidable financial strength to de-risk a substantial portfolio of IFC loans. By transferring a portion of the credit risk, the IFC, a member of the World Bank Group, can significantly enhance its capital efficiency and expand its lending capacity in markets where access to long-term financing remains a critical barrier to growth. The collaboration marks MSIG's first participation in an IFC credit insurance facility of this nature, signaling a strategic deepening of its commitment to sustainable global development.

De-Risking Development: A New Blueprint for Finance

The foundation of this partnership is the IFC’s innovative Managed Co-Lending Portfolio Program (MCPP), a platform created in 2013 to mobilize private-sector capital for development finance. The MCPP has proven to be a powerful tool, attracting over $19 billion in total capacity from institutional investors and global insurers to co-lend alongside the IFC in a diversified portfolio of emerging market projects.

The mechanism is both elegant and effective. Instead of providing direct funding, MSIG is underwriting a $6 billion credit insurance policy. This policy acts as a guarantee, covering potential losses on a portfolio of IFC loans to financial institutions. By shifting this risk to the private insurance market, the IFC can free up its own capital, allowing it to recycle funds into new lending commitments. This structure acts as a powerful multiplier, turning the insurance capacity into a much larger pool of available credit for developing nations.

This model addresses a core challenge in development finance: the perception of high risk in emerging markets, which often deters private investors. By partnering with the IFC, which has deep expertise in project appraisal and risk management in these regions, insurers like MSIG can confidently underwrite exposures they might otherwise avoid. It creates a symbiotic relationship where the IFC's development mission is amplified by the private sector's risk-bearing capacity.

A Lifeline for the Engines of Local Economies

The ultimate beneficiaries of this complex financial arrangement are the small and medium-sized enterprises that form the backbone of emerging economies. These businesses are crucial drivers of job creation, innovation, and economic resilience, yet they consistently face the most significant hurdles in securing the financing needed to grow and thrive.

The estimated annual investment gap to achieve the UN's Sustainable Development Goals stands at a staggering $4 trillion. A significant portion of this shortfall is the lack of access to credit for SMEs. The $10 billion in potential new lending facilitated by the MSIG-IFC partnership will flow through local commercial banks and financial institutions, directly targeting this gap. By strengthening these local lenders, the program ensures that capital reaches the businesses that need it most, fostering a more inclusive and robust private sector.

“This credit insurance facility shows how private insurers can unlock larger investments and enable more lending to small and medium-sized businesses in emerging markets,” said Kevin Njiraini, Director of Syndicated Loans and Mobilization at IFC. “We thank MSIG for their partnership in delivering this facility, which mobilizes insurers' underwriting capacity to drive growth and create jobs.”

A Partnership Forged from Financial Strength and Global Mission

MSIG’s ability to underwrite a policy of this magnitude is rooted in the immense financial strength of its parent company, MS&AD Insurance Group Holdings, Inc., one of the world's top property and casualty carriers. With a heritage spanning over 350 years and A+ financial strength ratings, the group possesses a policyholders' surplus exceeding $2 billion (Class XV), signifying a superior capacity to meet its financial obligations.

This financial muscle is complemented by deep technical expertise. The collaboration is led by MSIG USA’s Political Risk and Trade Credit team, a division specializing in navigating the complex risks associated with cross-border investment and trade.

“At MSIG USA, our Political Risk and Trade Credit expertise is grounded in MS&AD's broader mission to contribute to a more vibrant society,” stated Daniel Riordan, Head of Political Risk and Trade Credit at MSIG USA. “With A+ Class XV financial strength and experience working seamlessly across regions, we are proud to enable financial resilience and economic development in emerging markets with partners like IFC.”

The partnership also reflects a unified global strategy within the MS&AD group. Junichiro Mizukami, Managing Executive Officer at MSI Japan, echoed the sentiment, stating, “We are honored to participate in this program through a collaboration with MSIG USA and excited to contribute to the sustainable development of the global environment and society.”

This venture, while MSIG's first in the MCPP framework, is a logical extension of its long-standing engagement in structured risk transfer solutions and its corporate commitment to Environmental, Social, and Governance (ESG) principles. It positions the insurer not just as a financial backstop, but as an active enabler of sustainable economic progress.

The collaboration between a leading private insurer and a premier development institution represents a powerful and scalable strategy to channel private sector capacity toward creating jobs and building lasting economic resilience in the world's most dynamic, yet underserved, markets.