BAKU, Azerbaijan, December 10. The International Finance Corporation (IFC) has announced an equity investment in two insurance companies in Ukraine—Kniazha and USG—to boost access to innovative non-life insurance services, Trend reports via the IFC.
The investments aim to help ensure business continuity, expand access to insurance products, and strengthen Ukraine’s insurance market.
IFC is subscribing to up to 20 percent of the shares in Kniazha and USG. The equity investment helps withstand current conditions and serves as a clear demonstration to other investors of the sector’s ability to navigate challenges and its long-term prospects. At a time when fresh capital is limited in Ukraine, the projects aims to unlock growth, strengthen resilience, and support the country’s path to recovery and reconstruction.
The investment will enable growth in new product lines while strengthening the companies’ solvency. IFC will complement its investment with advisory support to help the companies expand their offerings and develop long-term digital strategies. These efforts aim to diversify the companies’ insurance products beyond transport, to better safeguard other critical sectors such as logistics, agriculture, real estate, and health, while also addressing the needs of a broader customer base, including small enterprises, and vulnerable groups such as displaced persons.
The initiative will leverage the distinct market reach of Kniazha and USG to enhance access to insurance products across Ukraine. Kniazha’s well-established presence in Western regions and rural areas and USG’s extensive operations in major cities will contribute to broad nationwide coverage. Both companies are part of Vienna Insurance Group, the leading insurance group in Central and Eastern Europe and an existing IFC partner.
The investments complement the World Bank’s Finance for Growth Project, which helps Ukraine’s National Bank update insurance laws to match EU standards and improve the system for insuring against war-related risks.