MSIG USA has announced its participation in an investment structure with DEG, a leading private-sector development finance institution and a subsidiary of Germany's KfW Group, designed to finance and mobilize further private capital for sustainable investment across developing and emerging markets.
The announcement was made during the Hamburg Sustainability Conference, where DEG introduced the new structure supporting a $500 million investment fund focused on sustainable development projects.
Under the arrangement, MSIG USA will provide credit insurance backing the fund, helping unlock additional private investment while enabling DEG to expand financing for projects spanning economic growth, infrastructure development, renewable energy, financial inclusion and other sustainable investments across developing markets.
The fund is expected to support approximately 45 investments across financial institutions, infrastructure, project finance and corporate sectors.
Daniel Riordan, head of Political Risk & Trade Credit and Surety at MSIG USA, said the transaction demonstrates how specialty insurance solutions can help mobilize private capital and strengthen economic resilience across developing markets.
Monika Beck, managing director of DEG, said the institution has spent more than 60 years financing and advising private enterprises in developing and emerging-market countries, and mobilizes additional capital through its fund advisory entity, DEG Impact, where it matters most.
"Today's signing with MSIG USA and our partners is clear proof of concept: our portfolio-based guarantee structures can mobilize institutional investors into emerging and developing markets," she said.
The DEG transaction is not an isolated move for MSIG USA's Political Risk & Trade Credit division.
In February 2026, Riordan was quoted alongside a separate $6 billion insurance-backed facility signed by the International Finance Corporation (IFC), the World Bank Group's private sector arm, and a consortium of 19 global insurers to expand lending to small and medium-sized businesses in emerging markets.
That facility, the fifth under IFC's Managed Co-Lending Portfolio Program (MCPP) for credit insurers, brought total mobilization under the program to $15.5 billion since its 2017 launch.
MSIG USA was also recently welcomed as a new member of the Berne Union, the leading international association for export credit and investment insurers, alongside the African Development Bank.
The DEG deal also lands amid a period of significant expansion for the US's own primary development finance and political risk insurance vehicle, the US International Development Finance Corporation (DFC).
Congress reauthorized DFC for six years through 2031 under the DFC Modernization and Reauthorization Act of 2025, raising its maximum contingent liability, the cap on total outstanding investment exposure, from $60 billion to $205 billion.
DFC has also taken on unusually high-profile political risk insurance work this year, including a $20 billion maritime reinsurance facility announced in March 2026 to support shipping through the Strait of Hormuz, with Chubb selected as lead underwriter.
That expanded federal capacity underscores a broader dynamic in the US market, with private insurers such as MSIG USA and government-backed vehicles like DFC both scaling up political risk and credit insurance activity, at times as partners and at times as parallel channels, to mobilize private capital into markets commercial lenders might otherwise avoid.
The Berne Union has estimated that the private credit and political risk insurance market as a whole holds exposures totaling roughly $495 billion, and its members have highlighted capital mobilization through insurer-MDB structures as a growing area of focus, with global export credit and political risk insurance demand expected to strengthen through the first half of 2026.
