Washington DC, January 28, 2002—The
International Finance Corporation, the private sector arm of the World
Bank Group, will invest up to US$4 million in Interseguro, a leading Peruvian
life insurance company. The investment will support the company’s
plans to expand its life insurance business, in particular its annuity
products for retirees.
IFC’s investment will also support the government of Peru’s private pension
reform program. The new program allows retirees to purchase a life
pension from insurance companies—annuities—by using their retirement
savings, thus providing retirees an alternative to private pension plans.
Annuities provide clear benefits to retirees by offering the certainty
of a guaranteed income stream under conditions chosen by retirees themselves.
Bernard Pasquier IFC’s Director for Latin America and the Caribbean, said:
“This investment shows IFC’s commitment to support Peru’s pension reform
by investing in companies that provide alternatives to members of the private
pension plans as they retire. It will also promote greater competition
in this sector.” Mr. Pasquier added: “This initiative also fits
with IFC’s strategy to support the deepening and broadening of long-term
domestic savings in Peru and Latin America.”
Felipe Morris, Chairman of Interseguro, indicated: “ IFC’s investment
in Interseguro is a recognition of the excellency with which the company
has been operating since its inception, providing high quality service
to its clients.” He also stated: “The proceeds of the capital increase
will allow Interseguro to continue its rapid growth and to remain as one
of the top companies in the Peruvian life insurance and annuity markets,
where it ranked second in annuity sales in 2001.”
Interseguro was founded in 1998 as an initiative of Peru’s Interbank Group.
Interseguro is headquartered in Lima and has eight branches nationwide,
offering various types of life insurance and pension related products.
It is the newest of the five largest companies that concentrate 86
percent of the life business in the country. Retirement annuities
account for 58 percent of Interseguro’s premiums. IFC’s equity
investment will account for about 15 percent participation in Interseguro.
IFC’s mission is to promote sustainable private sector investment in developing
countries, helping to reduce poverty and improve people’s lives. IFC
finances private sector investments in the developing world, mobilizes
capital in the international financial markets, and provides technical
assistance and advice to governments and businesses. Since its founding
in 1956 through the close of the last fiscal year on June 30, 2001, IFC
committed more than $31 billion of its own funds and arranged $20 billion
in syndications for 2,636 companies in 140 developing countries. IFC’s
committed portfolio at the end of FY01 was $14.3 billion.