Islamic Corporation For The Insurance Of Investment And Export Credit

This report does not constitute a rating action. Overview Enterprise risk profile Financial risk profile The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) has a mandate to foster trade and investment insurance in Islamic member states to promote their economic development. ICIEC?s robust levels of capital adequacy and exceptional liquidity remain key credit strengths. --A member of the Islamic Development Bank (ISDB) (AAA/Stable/A-1+) Group, ICIEC maintains a unique position as a Sharia-compliant multilateral insurer. --We expect the corporation?s risk-based capital adequacy to remain redundant at the 99.99% confidence level with a material buffer over the next two years. --ICIEC benefits from very strong preferred creditor treatment (PCT), recording zero claims against any of its sovereign exposures

...While small on a global basis, ICIEC's gross written premium (GWP) has grown by about 16% year-on-year on average over 2015-2024. In 2024, GWP reached $143 million (2023: $98 million), of which over half comprised foreign investment insurance. This is line with the corporation's strategy to boost its share of sovereign- and state-owned-entity-related exposures benefiting from PCT, currently accounting for about 75% of total gross exposure. We expect ICIEC will continue benefitting from PCT from its government borrowers. ICIEC's capital subscription plan has been extended for the third time, until June 30, 2025. In June 2022, ICIEC's board approved the corporation's third general capital increase (GCI) to a targeted Islamic Dinar (ID) 1 billion ($1.35 billion) from ID400 million ($520 million). Payment by seven member states, including the largest shareholder Saudi Arabia, commenced in January 2025 and will continue through 2029. In our view, higher equity capital will permit ICIEC to continue...

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