Lloyds global specialist reinsurer MS Amlin has announced that it will join the Natural Disasters Fund (NDF) as a commercial capacity partner.
The NDF is managed by Global Parametrics, a subsidiary of the CelestePro Group, and funded by commitments from the UK Government’s Foreign, Commonwealth and Development Office (FCDO) and KfW (KfW) on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).
The NDF is a hybrid risk transfer instrument designed to help low- and middle-income countries mitigate climate-related challenges and build resilience. It currently has a venture capital portfolio of over $100 million.
This partnership, along with long-term partner Hannover Re, will help strengthen NDF’s ability to deliver climate and disaster protection and private risk capabilities to vulnerable communities in the Global South.
MS Amlin will commit up to $50 million to share risks with NDF. The capital injection will enhance the Fund’s ability to provide risk transfer protection, supporting vulnerable communities in the Global South to build resilience to weather events and natural disasters.
As climate change continues to increase the frequency and severity of natural disasters, innovative public-private partnerships like NDF play an increasingly important role in efforts to close the protection gap.
Amir Sethu, head of sustainability at MS Amlin, said: “Our participation in the NDF reflects our commitment to deploying capabilities that support adaptation, resilience and long-term insurability.
“We are excited to join such an innovative structure and support its mission and the important work it does around the world. By working closely with NDF and its partners, we will help mitigate the damage caused by natural disasters and build a more resilient future for vulnerable communities around the world.”
Mark Rueegg, CEO of CelestPro Group, added: “The addition of MS Amlin to NDF as a risk sharing partner is an important new chapter in NDF’s journey.
“Growing and joining the global risk organization is part of NDF’s mission. So, in partnership with our highly valued, long-term partner Hannover Re, we are bringing together cornerstone organizations in the risk transfer space to grow NDF and its portfolio to add meaningful and sustainable impact where it is needed most.”
