The European Union is providing a new backstop to a war risk insurance program for the Ukrainian logistics sector, amid a rise in demand due to intensifying Russian attacks.
With EU backing, the European Bank for Reconstruction and Development’s guarantee facility, which is managed by Aon, will be expanded to €150 million ($167 million), up from the €110 million initially donated by France, Norway, Switzerland, the UK and Taiwan.
The new funds will allow Ukrainian insurers — who acquire reinsurance from London-based insurer Amlin under the program — to offer more war risk coverage, including to new business lines such as natural gas. Premiums collected under the EBRD program have so far roughly matched losses, meaning it hasn’t had to pay out losses to Amlin from the guarantee funds.
The EBRD program has guaranteed 10,000 policies since it first offered war risk insurance to Ukrainian customers in 2025, having supported more than €500 million of reinsurance coverage for vehicles and cargo such as grain and pharmaceuticals.
Demand for war risk insurance has grown alongside escalating strikes by Russian forces on Ukraine’s energy, logistics and civilian infrastructure, the bank said in a statement.
The European development bank is seeing reinsurers return to Ukraine, where the local industry has reached pre-war levels of market activity. In 2025, the country’s wider insurance industry collected 71.8 billion hryvnia ($1.6 billion) in premiums, up from 39.6 billion hryvnia when the full-scale war started in 2022, according to the National Association of Insurers of Ukraine.
“A lot of reinsurers left the market, and our goal was to bring them back by demonstrating that risk across Ukraine is not homogeneous and depending on sectors and geographies, a balanced portfolio can be commercially viable,” Matthieu Riolacci, private equity associate at the EBRD, told Bloomberg News.
Photograph: A vessel carrying Ukrainian grain in Mamara, Turkey; photo credit: Chris McGrath/Getty Images
Topics Europe
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