ICIEC’s support for investment and export insurance in member countries stood at USD 1500 million during the first half of 2012

The 68th ICIEC’s Board of Directors Meeting

ICIEC’s support for investment and export insurance in member countries stood at USD 1500 million during the first half of 2012

17 July 2012, Under the Chairmanship of Dr. Ahmed Muhammad Ali, the President of Islamic Development Bank (IDB) Group, the Board of Directors (BOD) of the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), held its 68th Meeting on 16th July 2012 at the IDB Headquarters in Jeddah. The BOD members took note of the business results of first half of 1433H (December 2011-May 2012) presented by Dr. Abdel Rahman El-Tayeb Taha, the CEO of the Corporation.

The report showed that new insurance commitments reached USD 1.1 billion compared to USD 1.7 billion registering a decrease of 36% from the comparable period of 1432H (2011. However, the business insured (total utilization of the commitments) during the first half of 1433H reached USD 1.5 billion, keeping the same level as last year. The report also showed that the Corporation paid a claim amounting to USD 1.3 million as a result of a Syrian company default on payment to an international financial institution.

Commenting on these results, the CEO of ICIEC, Dr. Abdel-Rahman El-Tayeb Taha said, “The decrease of the new insurance commitments is due to the prevailing economic crisis in the Euro-Zone, and the continuing political instability in some member countries which constrained the ability of the Corporation to provide credit and political risk insurance cover it in a number of traditional markets in Europe and in member countries. Thus, despite the large increase in demand for credit and political insurance by member countries, the Corporation was compelled to reduce its insurance commitments. Dr. Taha warns, “If the economic crisis in Euro-zone and the region turmoil continue, we may expect to receive more claims during the second half of the year”.

During the meeting, the BOD also considered the application of the Republic of Iraq to join ICIEC’s membership and recommended to the Board of Governors to approve the admission of Iraq as a member. Dr. Taha said, “The membership in ICIEC opens the door for both their private and public sectors in that country to benefit from services offered by ICIEC. Similarly, it allows exporters, banks and investors from other member countries, to cover risks related to their operations in Iraq”

The CEO of the Corporation took the opportunity to inform the members of the BOD that Moody’s investors Service, one of the leading rating agencies in the world, has re-confirmed for the fifth consecutive year the Aa3 rating insurance financial strength rating (IFSR) which was assigned to ICIEC for the first time in April 2008.