2022 Business Insured (USD)
11.6
billion
billion
ICIEC 2022 ANNUAL REPORT
GROWTH AND REGENRATION IN THE NEW PARADIGM
Global Economic Outlook
The ongoing war in Ukraine and global monetary tightening are the main
factors
hindering growth globally. The analysis predicts a global GDP growth of 2.9% in 2023, with the Chinese
government's shift away from its zero-covid policy providing support in the second half of the year.
Elevated oil prices are expected to persist due to the war, while global inflation is projected to
subside gradually. Trade is anticipated to slow down as household spending and business investments are
affected by inflation and geopolitical strains. Growth in Emerging Markets and Developing Economies
(EMDEs) is expected to be lower due to rising global interest rates and the channeling of resources away
from EMDEs.
Supply chain disruptions are also a cause for concern, and other risks to the global economic outlook
include the possibility of higher inflation and geopolitical fragmentation. ICIEC operating countries
are discussed in terms of their economic growth, with Sub-Saharan Africa, the Middle East, Central Asia,
and other emerging markets analyzed. Finally, the top risks in ICIEC's operating environment are
summarized into five key megatrends: COVID-19's impact on trade, climate change ramifications, widening
inequality, global geopolitical tensions, and the significant role of technology in trade.
$
2022 Key Results
2022 Credit Rating
Aa3
For the
15th
consecutive year
Best Multilateral Insurance Corporation Brand for Global Brand Awards 2022
2022 Business
Insured by Sector
USD 51 million
Agriculture
USD 6,638 million
Energy
USD 427 million
Infrastructure
USD 2,473 million
Manufacturing
USD 95 million
Mining and Quarrying
USD 264 million
Health
USD 361 million
Retail and Distribution
USD 1,334 million
Other
2022 Business Insured Breakdowns
Total Business Insured
USD 11.6 billion
19% YOY Change
New Insurance Commitments
USD 4.0 billion
27% YOY Change
Total Exposure
USD 4.6 billion
8% YOY Change
Message From CEO
“ICIEC continued to thrive in 2022. We delivered outstanding results for our
clients, partners
and shareholders with energy transition and resilience high on the corporate agenda. In this
Annual Report of ICIEC, we highlight the Corporation’s key achievements, provide information on
our financial performance, introduce some team members contributing to delivering our mandates
to our stakeholders, and spotlight ICIEC’s most fruitful partnerships and impactful projects for
the year.
Despite the challenges posed by a range of factors from the ongoing war in Ukraine to the
ongoing effects of the COVID-19 pandemic, ICIEC has continued to support trade and investment in
its Member States while also focusing on long-term sustainable development by catalyzing
ESG-related transactions and projects that contribute to the UN's Sustainable Development Goals
(SDGs). 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.
The organization's success is attributed to its team of professionals, the IsDB Group network, and the businesses in its MSs
that continue to push for impactful collaborations. “
Oussama Abdul Rahman Kaissi
Chief Executive Officer
ICIEC COVID-19 Response
ICIEC contributed to the implementation of the Strategic Preparedness and Response Program (SPRP), in cooperation with the IsDB Group, providing cover amounting to USD 1.4 billion to support efforts of MSs in the COVID-19 pandemic. Including USD 528 million for the Healthcare sector, USD 824 million towards Supporting imports of essential commodities, and USD 62 million to Support recovery of Small and Medium-Sized Enterprises (SMEs) from the economic impacts of the pandemic.
Major Project
Impact
ICIEC supports transactions ranging from covering investments in large infrastructure projects (in traditional energy or renewable energy, transport, and healthcare industries), imports of essential products, pharmaceutical supplies, and enhancing food security of its MSs.
ICIEC Backs ESG-Related Ugandan Infrastructure Projects
ICIEC supported essential ESG-related Ugandan infrastructure projects across Water, Electrification, Education, Agriculture, and Healthcare sectors. Uganda’s Ministry of Finance tapped a 10-year EUR196 million (USD 155 million) ECA-backed loan from Standard Chartered Bank with 95% cover from ICIEC’s Non-Honouring Sovereign Financial Obligation (NHSFO) guarantee to finance those schemes. The facility will also bridge a shortfall in project funding the Ugandan government is facing following COVID-19. All selected projects are ESG-related with significant developmental impact in Uganda and will, after completion, immediately improve the lives of millions of people. The backed financing will support agriculture, solar energy, a fundamental source of power generation to mitigate climate change, water infrastructure and healthcare. Other key impacts of the projects comprise: improved living conditions, increased access to safe drinking water to 95%, increased life expectancy and health-adjusted life expectancy, improved food security conditions, increased agriculture productivity, and the promotion of the green economy.
ICIEC Boosts Agri Commodities Trade in Member States
ICIEC insured FIM Bank, Malta, Incomlend Singapore and Bank of Africa UK for
their facilities totalling USD 95 million to support trade transactions in various MSs. The
BMP-C being offered to non-MS banks is expected to increase strategic exports/imports from MSs
for fertilizer, petrochemicals, steel and Agri commodities.
Promoting MSs exports and bilateral trade amongst all MSs is key to realizing the race to net
zero. Strategic goods will positively impact the green industrial revolution and will be a boon
for large-scale projects and trade across MSs. This project realizes SDG 2, 8 and 13. The
support of the steel trade will promote key ESG-related infrastructure projects and the delivery
of fertilizers will be crucial to promoting agri-business across MSs. The project shall also
improve the food self-sufficiency of the country while also helping to improve the efficiency of
the agriculture sector by using the latest technology in irrigation equipment. The financing
will help upgrade and improve efficiency for petrochemical projects across MSs.
ICIEC Supports Egypt's Energy Needs During the COVID-19 Pandemic
ICIEC supported essential ESG-related Ugandan infrastructure projects across Water, Electrification, Education, Agriculture, and Healthcare sectors. Uganda’s Ministry of Finance tapped a 10-year EUR196 million (USD 155 million) ECA-backed loan from Standard Chartered Bank with 95% cover from ICIEC’s Non-Honouring Sovereign Financial Obligation (NHSFO) guarantee to finance those schemes. The facility will also bridge a shortfall in project funding the Ugandan government is facing following COVID-19. All selected projects are ESG-related with significant developmental impact in Uganda and will, after completion, immediately improve the lives of millions of people. The backed financing will support agriculture, solar energy, a fundamental source of power generation to mitigate climate change, water infrastructure and healthcare. Other key impacts of the projects comprise: improved living conditions, increased access to safe drinking water to 95%, increased life expectancy and health-adjusted life expectancy, improved food security conditions, increased agriculture productivity, and the promotion of the green economy.
Financial Performance
Corporate Net Results
| (USD’000) | 2022 Actual |
2022 plan |
% Achieved |
2021 Actual |
% Growth |
|---|---|---|---|---|---|
| Policyholder's Fund Result | 3,439 | 2,023 | 170% | 3,834 | -10% |
| Shareholder's Fund Result | 7,540 | 4,810 | 157% | 5,419 | 39% |
| Corporate Net Result | 10,979 | 6,833 | 161% | 9,253 | 19% |
Investment Returns
| Gross Income | 2022 USD'000 |
% | 2022 USD'000 |
% |
|---|---|---|---|---|
| Equity and Funds | 748 | 9% | 495 | 9% |
| Money market placements | 1,749 | 21% | 286 | 5% |
| Sukuk | 5,483 | 65% | 4,510 | 79% |
| Syndications | 484 | 6% | 406 | 7% |
| Total Investment Income | 8,464 | 100% | 5,698 | 100% |
Investment Portfolio
| (USD’million) | 2022 | 2021 | % Change |
|---|---|---|---|
| Invested Funds* | 292 | 276 | 6.0% |
| Total AUM* | 351 | 331 | 6.0% |
| Investment Income | 8.5 | 5.7 | 48.6% |
| Return on Invested Funds(%) | 2.89% | 2.07% | 40.1% |
| Return of total AUM(%) | 2.41% | 1.72% | 40.1% |
Gross written premium (gwp) increased in 2022
Total claims and expenses Increased in 2022
Shareholders' Fund (SHF) Increased in 2022
ICIEC Impact
SDG Impact
ICIEC ensures that its commitment to reaching the SDGs is thoroughly embedded in everything it does, both internally and externally.
Zero Hunger
Committed to achieving food security in its Member States through strategic partnerships and supporting the imports of essential agricultural commodities, imports of modern agricultural machinery, and access to financial services.
In 2022, ICIEC supported over
USD 51 million
in trade and investment in the agricultural sector.
Good Health
and Well-being
Responding to urgent healthcare needs exacerbated by the global pandemic through ensuring foreign investments in health infrastructure and providing cover for the import of strategic health commodities, otherwise deemed too risky.
In 2022, ICIEC insured upwards of
USD 264 million
in trade and investment in the health sector.
Affordable and
Clean Energy
Expanding insurance support for developing modern and sustainable energy services through mitigating political and commercial risks associated with required infrastructure investments and exports.
In 2022, ICIEC supported
USD 379 million
in trade and investment related to the clean energy sector.
Decent Work and
Economic Growth
Advancing economic growth, increased economic productivity and employment creation by facilitating strategic investments in the LDMSs and promoting export businesses to grow internationally.
In 2022, ICIEC insured over
USD 2,079 million
for imports, exports outward and inward investment in least- development Member States and.
USD 73 million
in labour-intensive industries.
Industry, Innovation,
and Infrastructure
Mobilizing funds for large capital-intensive infrastructure projects in the Member States such as building bridges, airports, and state-of-the-art medical facilities. Improving access to finance for SMEs and encouraging infrastructure investments through risk mitigation instruments for banks and medium/long-term financing.
In 2022, ICIEC supported
USD 427 million
in trade and investment related to infrastructure sector.
Partnerships for
the Goal
Collaborating with Member States, banks, investors, corporates, national ECAs, and other development finance institutions. Transactions that would otherwise be deemed too risky are realized through ICIEC's strong network of partners.
In 2022, ICIEC established more than
164 partnerships
with national ECAs, reinsurers, banks and other multilateral institutions.
Enhancing Impact
-
- ICIEC signed an agreement with "Aware for Projects", a landmark online climate-risk screening tool to help the Corporation identify potential climate change risks and develop a consistent approach to assessing them.
- Within the IsDB Group Regional Hub, ICIEC opened a new regional office in Cairo, Egypt in 2022. This is an important milestone as it will expand ICIEC's reach and better serve the needs of clients in this region.
Enhancing Efficiency
- The Corporation is committed to providing a best-in-class client experience through
various initiatives, including:
- Comprehensive update of the Operations Manual.
- Automating and streamlining the end-to-end business solution. This is expected to Go-live in Q2-2023.
- The Corporation’s goal is to provide clients with an efficient, optimized system that will enable them to maximize productivity while minimizing time spent on manual processes.
Enhancing Resilience
-
ICIEC undertook a technical study of its capital requirements and secured a capital increase, which has succeeded in enhancing capacity and its credit rating.
Partnering for Islamic Finance Impact
As the only Shariah-Compliant multilateral credit and investment insurer in the world and a member of the IsDB Group, ICIEC plays a crucial role in Islamic Impact Finance. For instance, Green Finance and Green Bonds/Sukuk are vital. ICIEC’s Green Sukuk Insurance Policy (GSIP) allows issuers to attract capital for ‘green’ projects better. The GSIP is valuable for issuers in low-income and developing Member States, which are below investment grade rated and, consequently, attract less private capital for climate action. In short, Islamic finance will be paramount to promoting and realizing the SDGs across MSs, as Shariah-Complaint facilities become key tools in corporate exporters’ and importers’ financial toolkits.
Propelling
Partnerships
One of ICIEC's core strengths is in its partnerships with various organizations, both within and outside the IsDB Group. These partnerships focus on diverse sectors and regions, extending the Corporation's reach and impact. Some notable partnerships and agreements include:
- ICIEC Signs a Memorandum of Understanding (MoU) with Nippon Export and Investment Insurance (NEXI) to combat the climate crisis
- Saudi EXIM Bank and ICIEC Seal Reinsurance Agreement to Help Facilitate the Flow of Trade Finance into and out of the Kingdom of Saudi Arabia
- ICIEC and Al-Rajhi International Investment Company Inked a Memorandum of Understanding for Agri-Food Security to Member State
- Memorandum of Understanding Signed with Islamic Chamber of Commerce, Industry and Agriculture (ICCIA) to Support Trade and Green Finance in Member States Leveraging ICIEC De-Risking Solutions
- ICIEC joined the InsuResilience Global Partnership (IGP) for Climate Disaster Risk Finance and Disaster Solutions, Positioning Itself at the Forefront of the Climate Action Needs of its Member States
- ICIEC and Elsewedy Electric Partner to Accelerate Climate Action in Member State
- ICIEC Signed a Landmark Cooperation Memorandum of Understanding with Africa Finance Corporation (AFC) to Promote the Origination, Financing and Execution of Climate Action Projects in African Member States
- ICIEC, African Development Bank (AfDB), African Trade Insurance Agency (ATI), African Union Development Agency (AUDA-NEPAD), GuarantCo, and Afreximbank Partnered to Boost Trade
These partnerships reflect ICIEC's collaborations in various regions, such as Asia, Europe, and Africa, as well as its commitment to climate action, green finance, infrastructure development, and support for SMEs. ICIEC's will continue to pursue dynamic partnerships and their role in enhancing the organization's impact across diverse industries and regions.
ICIEC Mid-Term 10 Year
Strategic Priorities
The Annual Report reviews the progress of ICIEC's 10-Year Strategic
Framework
(2015-2025) and its mid-term strategic priorities (2021-2025). The strategic framework's
objectives
are to create short- and long-term development impacts in the Member States and maintain
financial
sustainability. To achieve these objectives, ICIEC established three strategic pillars: Market
Impact, Capital Optimization, and Organizational Strength.
The mid-term strategy review resulted in redefining the strategic pillars as (1) Enhancing
Impact,
(2) Enhancing Efficiency, (3) Enhancing Resilience, and (4) Enhancing IsDB Group Synergy. These
pillars align with the IsDB Strategic Realignment 2023-2025, focusing on boosting recovery,
tackling
poverty and building resilience, and driving green economic growth.
Key achievements under the Enhancing Impact pillar include facilitating intra-OIC trade and
investment, contributing to IsDB Group's Strategic Preparedness and Response Program (SPRP), and
promoting green economic growth. Under Enhancing Resilience, ICIEC achieved a financial
turnaround
from consistent deficits to positive technical results. Enhancing Efficiency saw progress in
business process optimization, organizational structure improvement, and leadership development.
Enhancing IsDB Group Synergy involved active contributions to group-wide initiatives and
programs.
Lastly, Enhancing Partnerships and Innovation involved establishing impactful partnerships with
Export Credit Agencies (ECAs) and exploring innovative solutions such as the "Arab Africa
Guarantee
Fund."
ICIEC's 2023-2025 Realigned Strategic Framework
VISION
To be recognized as the preferred enabler of trade and investment for sustainable economic development in member states.
MISSION
To facilitate trade and investment between member states and the work through shariah-compliant risk mitigation tools.
10-Year Strategic Objectives
To achieve short- and long-term development impacts in Member States that can be clearly seen and tangibly felt by those they benefit
To maintain financial sustainability to ensure long-term support and investment for Member State citizens, businesses, and institutions
2023-2025 Strategic Objectives
Boosting Recovery
Building Resilience & Tackling Poverty
Member States-focus Pillar
Enhancing Impact
Institutional Pillars
Enhancing Efficiency
Enhancing Resilience
Cross-cutting Pillar
Enhancing IsDB Group Synergy
Key Enablers
Enhancing Partnership
Enhancing Innovation
10-Year Strategic Objectives
- To achieve short- and long-term development impacts in Member States that can be clearly seen and tangibly felt by those they benefit
- To maintain financial sustainability to ensure long-term support and investment for Member State citizens, businesses, and institutions
2023-2025 Strategic Objectives
- Boosting Recovery
- Building Resilience & Tackling Poverty
- Driving Green Economic Growth
Member States-focus Pillar
- Enhancing Impact
Institutional Pillars
- Enhancing Efficiency
- Enhancing Resilience
Cross-cutting Pillar
- Enhancing IsDB Group Synergy
Key Enablers
- Enhancing Partnership
- Enhancing Innovation
Risk Management
Following the downturns shocks in the world economy emanated by the
COVID-19
pandemic, the war in
Ukraine has added high uncertainties about the global outlook, which negatively impacted on
insurance operations across the world. Despite the dampened conditions, however, ICIEC continues
to tackle the economic consequences of the war and the lingering impact of the pandemic as the
Corporation’s business model has proven robust across different economic cycles. Undoubtedly,
the pivotal role of Risk Management is one of the most important factors that enabled the
Corporation to navigate successfully through the crisis period while upholding its strong credit
profile. ICIEC aims to consolidate the achievements made so far by strengthening the risk
management practices and architecture to support the achievement of the 10-year strategy. The
Risk Management paradigm is akin to safeguarding business continuity, achieving sustainability,
optimizing capital allocation and utilization with a forward-looking risk-based capital planning
while enhancing the overall performance of the Corporation through a tailored Enterprise Risk
Management (ERM) architecture.
ICIEC’s core risk stems from (i) underwriting of trade credit and political risks through the
PHF: (ii) investment operations of its SHF: (iii) counterparty risks arising from outward
reinsurance of its insurance exposure. Other risks arise from its overall activities in diverse
and complex forms, being a specialized multilateral insurer (SMI).
In recent years, ICIEC has made significant progress in strengthening its risk management
paradigm and achieved appreciable milestones. The Corporation developed and implemented a Risk
Appetite Statement (RAS) which has been approved by the BOD. The RAS articulates in written form
the aggregate level and types of risk that the Corporation is willing to accept, or to avoid, to
achieve its business objectives.
ICIEC has adopted a balanced approach to support MSs’ developmental needs amid crises whilst
maintaining a sound portfolio with robust risk management, prudent underwriting, and loss
minimization efforts. This has been further enhanced by the strong follow-up and prudent
monitoring using effective risk management capabilities and management’s timely intervention in
strategic key points supported by IsDB Group synergy.
Member States Utilization of ICIEC Services (Since Inception)
Inception to 2022 (USD billions) |
Imports | Exports | Outward Investment | Inward Investment |
|---|---|---|---|---|
| South east asia | 10.369 | 1.704 | 0.441 | 1.994 |
| Arab Asian Countries | 17.978 | 40.429 | 2.646 | 1.533 |
| Central Asia And Europe | 5.773 | 13.749 | 3.466 | 3.861 |
| East and Central Africa | 0.791 | 0.212 | -- | 1.751 |
| North Africa | 10.497 | 5.996 | 0.695 | 4.210 |
| West Africa | 4.219 | 0.142 | -- | 5.853 |
| Grand Total | 49.627 | 62.232 | 7.248 | 19.202 |
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