Sao Paulo, Brazil – September 27,
2010—IFC, a member of the World Bank Group, is partnering with the
Swiss Reinsurance Company to invest $40 million in UBF Seguros, a leading
player in Brazil’s surety and agricultural insurance business.
The investment will help UBF Seguros
compete in the fast-growing specialty insurance market in Brazil, where
significant investments in infrastructure, energy, and agriculture are
driving demand. It positions Swiss Re as the Sao Paulo-based company’s
majority shareholder and IFC as its sole minority investor.
"This is both strategically and
financially a very attractive transaction that creates significant value
for UBF Seguros,” said Luiz Foz, Chief Executive Officer of UBF Seguros.
"The endorsement by a global industry leader like Swiss Re and an
investor with the reputation of IFC provides a powerful business combination
offering tremendous opportunities to strengthen our franchise and to deliver
solutions to the Brazilian market."
The liberalization of Brazil’s (re)insurance
market has increased competition and the need for product innovation, underwriting
expertise, and risk management.
“Swiss Re has supported UBF Seguros
since its founding and will continue to do so by strengthening its capital
base, further deploying our technical know-how, and capacity, and by helping
the company expand into other specialty lines of business,” said Rudi
Flunger, Head of Swiss Reinsurance Company’s Insurance and Specialty Division.
“This transaction reflects our commitment to the Brazilian market, where
we have been doing business for more than 60 years, and creates the opportunity
to strengthen our partnership with IFC.”
The investment, IFC’s first in the
insurance sector in Brazil, will help develop infrastructure projects by
expanding the surety market. It will also help develop new insurance products
for agro-insurance, increasing access to private and public insurance schemes
that will reach more than two million farmers.
“This equity investment in UBF strengthens
the global strategic relationship between IFC and Swiss Re,” said Loy
Pires, IFC Country Manager for Brazil. “By facilitating the expansion
of the surety market we expect to help alleviate infrastructure bottlenecks
in Brazil, support agricultural producers, and help increase incomes in
rural areas around the country."
Closing of the transaction is subject
to local regulatory approvals.
IFC, a member of the World Bank Group,
is the largest global development institution focused on the private sector
in developing countries. We create opportunity for people to escape poverty
and improve their lives. We do so by providing financing to help businesses
employ more people and supply essential services, by mobilizing capital
from others, and by delivering advisory services to ensure sustainable
development. In a time of global economic uncertainty, our new investments
climbed to a record $18 billion in fiscal 2010. For more information, visit
About UBF Seguros
UBF Seguros is a Brazilian insurance company specializing in surety and
agriculture insurance. The company has more than 12 years of experience
in the underwriting of surety products such as contractual, commercial
and completion bonds. UBF Seguros also offers a wide range of agriculture
insurance products including crop, livestock, forestry, bloodstock and
farm property. For more information, visit www.ubf.com.br.
About Swiss Reinsurance Company
Swiss Re is one of the world's largest and most diversified reinsurers.
The company operates through offices in more than 20 countries. Founded
in Zurich, Switzerland in 1863, Swiss Re offers financial services products
that enable the risk-taking essential to enterprise and progress. In addition,
Swiss Re has broad, global insurance capabilities, including solutions
for commercial insurance, industrial insurance, large corporate risks,
aviation and space and environmental and commodity markets. Swiss Re offers
structured, multiline programs and can customize its offerings in order
to help clients mitigate their most complex risks. Swiss Re also offers
insurance-linked securities and catastrophe bonds, and has among the highest
available capacity in the industry. Swiss Re is rated “A+“ by Standard
& Poor’s, “A1” by Moody’s and “A” by A.M. Best. For more information,