São Paulo, Brazil, September 9, 2014—IFC,
a member of the World Bank Group, announced an equity investment of BRL
80 million (about US$ 36 million) in Austral Participações, to support
the expansion of the insurance market for infrastructure and agricultural
sectors, among others, and promote innovation of insurance products.
IFC will acquire a minority participation
in Austral Participações, the holding company of Austral Seguradora and
Austral Resseguradora (Austral Re), controlled by Vinci Partners. IFC’s
investment will help Austral to consolidate its operations and accelerate
the already significant growth it has been experiencing since its establishment
in Brazil four years ago.
Increasing insurance coverage and the
availability of reinsurance capacity are key enablers of sustainable economic
development and private sector growth. Insurance plays an important role
mitigating risks in emerging markets, helping to cushion individuals and
businesses against the adverse effects of natural disasters, fires, droughts
and other unforeseen events.
“IFC’s investment demonstrates the
positive medium- and long-term outlook for the insurance and reinsurance
sectors in Brazil”, says Bruno Freire, Austral Re’s executive director.
Carlos Frederico Ferreira, Austral Seguradora’s executive director,
stresses that having IFC as one of the company’s shareholder helps to
boost Austral’s expansion plan and its efforts to increase its market
According to Alessandro Horta, founding
partner of Vinci Partners, “Vinci is proud to bring in a new strategic
partner such as IFC, who deeply understands the insurance and reinsurance
sectors, to help boost Austral’s expansion capacity in Brazil and
“The investment in Austral is aligned
with IFC’s strategy in Brazil to improve the country’s competitiveness,
supporting infrastructure development, sustainable growth of the agribusiness
sector, job creation and access to financial services for underserved sectors”,
says Hector Gomez Ang, IFC Brazil’s Country Manager.
Present in the country since 1956, IFC
has been investing about US$ 2 billion per year in Brazil, country with
the world’s largest IFC’s investment program, to support addressing
the country’s most pressing development challenges, including those of
the urbanization, social inclusion, competitiveness and productivity, and
management of natural resources.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. Working with private enterprises in about 100 countries,
we use our capital, expertise, and influence to help eliminate extreme
poverty and boost shared prosperity. In FY14, we provided more than $22
billion in financing to improve lives in developing countries and tackle
the most urgent challenges of development. For more information, visit
Austral is comprised of Austral Seguradora
and Austral Re. Austral Seguradora operates in the large/big risks market
focused on Surety Bonds,and risks related to Engineering and Oil explotations.
Austral Re, the reinsurance company, operates in all business lines with
focus on automotica contracts