MS Amlin has entered into a reinsurance partnership with its parent company, Mitsui Sumitomo Insurance Co., Ltd. (MSI), to provide contract frustration coverage for banking clients in the United Arab Emirates.
The arrangement, operated through MS Amlin's Dubai branch, will see all risks written by MSI's UAE branch ceded to MS Amlin. MSI will continue servicing its existing client portfolio while pursuing new business in the region.
Contract frustration insurance compensates policyholders for losses incurred when actions of a foreign government or conditions in a foreign country prevent fulfillment of a contract. Such coverage protects against both pre- and post-delivery risks, including political violence, embargoes, operating license cancellations, and failures to honor arbitration awards.
The partnership comes as the UAE re/insurance sector continues its upward trajectory, with projections indicating growth of up to 20% in 2025. This follows a 21% surge in revenue recorded in 2024, signaling sustained demand across multiple insurance lines in the region.
MS Amlin brings more than 20 years of experience in the contract frustration class and has maintained operations in the Middle East for over a decade. The reinsurer began writing political risk in the region in 2025 following the appointment of class underwriter Osama Elshiekh, with the account growing over the past 12 months.
The move places MS Amlin in a market attracting increased competition. Major carriers such as Fidelis and Allianz are establishing or enhancing underwriting authority in the region.
Lloyd's itself announced, in 2025, a 50% increase in political and financial risk line sizes, raising coverage capacity from US$20 million to US$30 million.
Research projects the global political risk insurance market will reach US$2.20 billion by 2034, up from US$1.24 billion in 2024 – a compound annual growth rate of 5.9%.
Vipul Gupta (pictured above), senior executive officer at MS Amlin (MENA), said demand for contract frustration protection has been rising among lenders and credit providers in the region.
"There are many world-renowned lenders in the Middle East who are supporting both domestic and international development and economic growth, but to fund that growth they need to have the right support in place to protect their own balance sheets," Gupta said.
Gupta noted that MS Amlin's London-based underwriting team provides global perspective combined with local market knowledge. He described the partnership as an example of synergy within the MSI network, allowing both companies to support clients while reducing frictional costs.
Yoshinori Nakamura, general manager of MSI's UAE branch, said the collaboration aims to strengthen services for clients, including Japanese companies operating in the region.
"This partnership between two MSI companies is a perfect illustration of the power of collaboration, the innate value of the MSI Group of companies and the help we can deliver to existing and prospective clients in the region," Nakamura said.
