Washington, D.C., August 24, 2010—IFC,
a member of the World Bank Group, and the IFC African, Latin American and
Caribbean (ALAC) Fund are providing $75 million in equity to help Trinidad
and Tobago-based Guardian Holdings Limited expand its operations and develop
the insurance sector in the Caribbean.
The investment includes $56.25 million for IFC’s account and $18.75 million
from the IFC ALAC Fund, which is managed by IFC Asset Management Company.
The additional support for this existing IFC client will enable new opportunities
for growth, acquisition, and consolidation in a region where few businesses
and individuals have insurance policies and where some banks and insurance
companies have struggled in the wake of the financial crisis.
“This investment will give us the financial flexibility to support our
growth strategies while improving our overall cash flow position and creating
value for all our shareholders,” said Jeffrey Mack, Guardian Group CEO.
“It represents the continuation of our strong relationship with IFC.”
The transaction is part of IFC’s strategy to expand its investment activities
in the insurance sector, with the goal of increasing availability of insurance
products that address individual needs, such as health insurance, and access
to insurance products for smaller businesses, microfinance institutions,
and agribusinesses. The effort involves partnering with global and regional
insurance companies that are focused on expanding in emerging markets.
James Scriven, IFC Director of Financial Markets, said, “This investment
aligns with our priorities for the region by deepening the financial sector
and improving access to services for segments not currently served by insurance
companies, while strengthening our partnership with a strong local player,
helping it grow and expand into new markets.”
Sujoy Bose, Head of IFC ALAC Fund, added, “IFC ALAC Fund is pleased to
partner with Guardian Holdings Limited, a leader in the Caribbean insurance
sector, where market penetration is low compared to international standards.
This infusion of capital will allow the company to expand its insurance
services in this underserved market.”
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 www.ifc.org.
About IFC Asset Management Company
IFC Asset Management Company LLC, a wholly-owned subsidiary of IFC, invests
third-party capital, enabling outside investors to benefit from IFC’s
expertise in achieving strong equity returns as well as positive development
impact in the countries in which it invests. It manages the $3 billion
IFC Capitalization Fund as well as the IFC ALAC Fund.
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