Mosaic Insurance, the Bermudian-based specialty carrier, has raised the line size for political-risk coverage to $30 million and extended its funding horizon to support critical financing schemes in developing economies.

The company said the moves underscore the global specialty insurer’s emphasis on sustainable finance in the sector, particularly around green-energy projects that assist emerging nations hit hard by post-pandemic economic and geopolitical shocks.

Mosaic has strengthened capacity from $15 to $30 million per political risk, leveraging both its Lloyd’s Syndicate 1609 and trade-partner capital through its syndicated management programme.

The company has also lengthened the tenor, or term provisions, of loan coverage from 10 to 15 years for political-risk insureds such as multilateral and state-owned development banks.

“This is an essential step allowing us to match the market’s appetite for longer-tenor projects and sustainable finance around meaningful infrastructure schemes,” said Finn McGuirk, Mosaic’s head of political risk.

“We’re seeing an increase in these types of loans using blended finance tools and innovative products like ‘blue bonds’ that generate funding for marine ecosystems — it’s a win-win for low-income countries and supports their long-term economic stability.”

Natalya Tyson, VP, underwriter, political risk, at Mosaic, said: “In recent years, the world economy has suffered successive crises — from rising interest rates and food insecurity to deglobalisation. Developing countries have been impacted disproportionately as their debt levels rise, making it harder to invest in recovery.

“We’re pleased to support projects behind institutions committed to affordable, long-term green finance, and we take pride in working with our valued clients in this sphere.”

Mosaic said sustainable finance and green investments have steadily grown since the adoption of the United Nations 2030 Agenda for Sustainable Development and the 2015 Paris Agreement on Climate Change, with increasing public-private collaboration.

Ms Tyson said: “Renewable-energy infrastructure can require longer financing support behind multilaterals, typically on a semi-concessional basis, provided at below-market interest rates.

“But the longer time frame is more affordable and helps realign low-income nations’ debt profiles to make the burden more manageable.”