The Board of Governors of the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) approved ID 600 million (about USD 805 million) increase in capital for the foremost Shariah-compliant multilateral insurer during its 29th Annual Meeting held in Sharm El Sheikh, Egypt on 4th June 2022.
The Governors approved a 150 percent increase in the authorized capital of ICIEC to make it ID 1 billion (about USD 1.35 billion), the largest in its history. Based on the approval, the subscribed capital is targeted to be increased by 168% from ID 297 million (about USD 398 million) to ID 797 million (about USD 1.08 billion). In addition, a special share class comprising ID 100 million (about USD 135 million) of the increased capital has been allocated for subscription by financial institutions owned by the member states of ICIEC.
The ICIEC Board of Governors Meeting was held during the 47th Annual Meetings of the IsDB Group between 1-4 June 2022 in Sharm El Sheikh, Egypt, during which the Board also approved the Corporation’s 2021 Annual Report and audited Financial Statements.
The capital increase approval underscores the strong support enjoyed by ICIEC from its member states and an endorsement of its strategic growth plans in delivering the objectives of sustainable development to its member states. Moreover, the approval highlights the diversification of capital resources, with the inclusion of financial institutions, while prioritizing its mandate to member states.
According to ICIEC CEO, Mr. Oussama Kaissi, “Capital is important for a multilateral insurer because it determines our ability to underwrite more business and boost reinsurance capacity to support our member states. The Chairman of the ICIEC Board of Directors, Dr. Muhammad Al Jasser, and the entire Board have been tremendously supportive of ICIEC management. The Board recognized the need to increase the capital of ICIEC in order to continue to carry out its developmental mandate effectively. Furthermore, this capital increase will scale up ICIEC’s financial strength, enhance its loss-bearing equity resources, improve competitive position in the market and internal capital generation capacity-thus strengthening its credit fundamentals.”
Despite a challenging year worsened by the global economic impact of the COVID-19 pandemic, ICIEC reported business insured totaling US$9.8 billion in 2021. ICIEC’s 2021 business environment was marked by unprecedented risks, shifting priorities, and the COVID-19 response initiatives of the IsDB Group.
Despite the impact of the pandemic on insurance operations and the steep decline in market rates of treasury investment, Corporate Net-Results for 2021 stood strong at a US$ 9.3 million surplus equivalent to 182 percent achievement of the Business Plan target for the year.
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