Liberty Mutual Partners with OPIC to Insure Investments in Developing Economies
NEC member Liberty Mutual recently announced that it will partner with the U.S. government’s development finance arm, Overseas Private Investment Corporation (OPIC), to insure the loans that OPIC provides to foreign countries with developing economies. This partnership marks Liberty Mutual’s latest foray into the development finance industry.
Under this program, OPIC will lend money to financial institutions in countries in Central and South America and Africa, who will then lend it to local businesses, and Liberty Mutual has agreed to insure the funding in the event that the businesses fail to pay it back. The expected total of distributed loans is around $1 billion, although OPIC predicts that the number could very well rise. Liberty Mutual executives have said that OPIC’s long record of success in investing in foreign countries gives them more confidence in providing insurance to developing economies.
Eydie Quintrell, Underwriting Development Director at Liberty Specialty Markets, said that in the past, the company has insured individual transactions by development financial institutions, but initiatives like the OPIC program are more efficient. “It gives us scale, instead of doing it one by one,” she stated.
The NEC congratulates Liberty Mutual on this exciting new partnership, and commends them on their support of developing economies abroad.