Washington, March 31, 2011—IFC,
a member of the World Bank Group, agreed today to invest up to $100 million
in Barbados-based Sagicor Financial Corporation to bolster market
confidence in the insurance industry and to expand insurance services in
The transaction is IFC’s largest-ever in the insurance sector and will
consist of up an investment of up to $20 million in common shares, or about
a 4 percent stake in Sagicor, and up to $80 million in convertible
and redeemable preference shares.
The investment demonstrates confidence in the long-term future of the Caribbean
insurance industry following several market failures and a tightening of
credit arising from the 2008 global economic crisis. The transaction will
also allow consumers, especially the poor, to plan and invest in the future
by helping to expand Sagicor’s presence in the Caribbean and eventually
in Latin America.
"Insurance gives people the security they need to grow businesses
and invest in the well-being of their families," said IFC Executive
Vice President and CEO Lars Thunell. "This partnership between IFC
and Sagicor will promote greater access to more types of insurance products
in the region.”
“We view this investment, and indeed the level of investment by IFC, as
a message of confidence in Sagicor,’’ said Sagicor Chairman Stephen McNamara.
“The benefits of this partnership and investment to the wider communities
will become evident as Sagicor deploys the funds raised for growth within
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.
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.
For more information on Sagicor, visit: www.sagicor.com.