Marsh & McLennan (MMC) Launches Unity to Support Grain Export
Marsh & McLennan Companies, Inc. MMC recently introduced a new initiative named Unity in partnership with the Ukrainian government, the Export Credit Agency of Ukraine, Ukreximbank, state-owned Ukrgasbank, as well as DZ Bank. This collaborative effort aims to deliver cost-effective insurance solutions for the export of critical food supplies, including grains, from the country's Black Sea ports.
Insured by Lloyd's of London underwriters, Unity will offer hull and P&I war risk coverage, reaching a maximum of $50 million. The new facility will receive support facilitated by standby letters of credit from Ukreximbank and Ukrgasbank, confirmed by German lender DZ Bank. The facility, endorsed by the Ukraine Ministry of the Economy, is designed to provide war risk insurance to shipowners and charterers.
This initiative is expected to help maintain and secure the supply chains by ensuring the safe transport of Ukrainian grain amid the ongoing conflict. By mitigating risks and providing insurance coverage, Unity can contribute to the stability of global food security, especially for developing nations that rely on Ukraine’s grain exports.
Beyond immediate challenges related to the ongoing conflict, Unity can also play a crucial role in supporting Ukraine's future recovery and reconstruction efforts. The unique structure of Unity offers a distinct advantage by enabling underwriters to assess and price risks in a more affordable manner. It will also provide support to ongoing humanitarian efforts and ease supply chains.
The move can enhance Marsh & McLennan's global standing and expertise in risk management. This can strengthen the company’s position as a key player in addressing critical global challenges and fostering resilience in the face of complex geopolitical situations.
Price Performance
Shares of Marsh & McLennan have climbed 18.1% in the past year, the same as the industry.
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Zacks Rank & Other Key Picks
Marsh & McLennan currently has a Zacks Rank #2 (Buy).
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