Aon plc Arranges DFC-Backed Reinsurance Facility to Expand War-Risk Coverage for Ukrainian SMEs

New reinsurance facility targets Ukrainian SMEs

Aon plc is arranging a U.S. International Development Finance Corporation (DFC)-backed reinsurance facility that becomes effective Feb. 1, 2026, to expand war-risk coverage for small and medium-sized enterprises (SMEs) and private individuals in Ukraine. The $25 million facility provides reinsurance capacity on a KNIAZHA VIENNA INSURANCE GROUP (KNIAZHA VIG) portfolio and enables DFC-backed coverage up to $100 million, designed to mitigate conflict-related losses and support continuity of business activity amid ongoing reconstruction needs.

Aon is presenting the deal as part of a broader public-private coalition that mobilises insurance expertise, analytics and global relationships to unlock innovative risk-transfer solutions in high-risk environments. Greg Case highlights Aon’s role in coordinating capital and building insurance capacity, noting the arrangement aims to de-risk investment and accelerate reconstruction projects by offering market-backed protection that supports project finance and private-sector participation.

KNIAZHA VIG and Vienna Insurance Group frame the facility as strengthening their role in the country’s rebuilding process, expanding product availability for households and SMEs and fostering a more resilient insurance platform nationwide. Harald Riener says the initiative expands SME and private insurance provision, supports regional initiatives and helps mobilise private-sector finance that can underpin long-term stability and economic recovery.

Aon’s sustained Ukraine engagement

The facility follows Aon’s wider Ukraine-focused activity since the war began, where the firm says it has coordinated more than $490 million in public and private capital to reinforce Ukraine’s economy and enable foreign investment during the conflict. Aon cites past initiatives including a €110 million insurance facility with the European Bank for Reconstruction and Development and programmes to build local insurance capacity and early careers opportunities in Ukraine.

Broader implications for insurance markets

Industry participants say the transaction underlines a shift toward targeted reinsurances that fill coverage gaps remaining after broad exclusions for risks originating in Ukraine, Russia and Belarus. Market observers expect such public-private structures to play a growing role in mobilising private capital, protecting livelihoods and giving investors greater confidence to participate in reconstruction projects.