Hong Kong SAR, January 9, 2013—IFC,
a member of the World Bank Group, is making a $82 million equity investment
in Peak Reinsurance Company Limited, a newly established non-life reinsurer
in Hong Kong, to expand and improve access to quality insurance services
in Asia Pacific.
IFC has worked with Fosun International
(Fosun), one of the largest Chinese private investors and our long-term
strategic partner, over the past two years to support the establishment
of Peak Re. Fosun is investing about $468 million in the company as its
majority founding shareholder.
With Fosun and IFC’s support, Peak
Re will insure the risks of primary insurers across Asia to help expand
their operations. The company aims to reach around 100 insurance clients
in seven emerging Asian markets such as China, India, and Indonesia in
the next five years.
“Increased insurance coverage is important
to sustainable business growth and private sector development,” said IFC’s
Asia Financial Markets Director Serge Devieux. “Supporting the emergence
of strong regional reinsurers such as Peak Re will enable local insurers
to expand their products and services and reach more clients.”
Asia Pacific has been underinsured in
general. According to a study by Swiss Re, people in emerging Asian countries
spent an average of $27 on non-life insurance policies in 2010, compared
to about $50 in global emerging markets and $1,500 for developed markets.
Franz Josef Hahn, chief executive officer
of Peak Re, said: “The strong financial and technical backing of Fosun
and IFC has been critical in making Peak Re a reality. As top-quality founding
shareholders, they provide a superb blend of support that enables Peak
Re to develop in a competitive and sustainable manner.”
The investment in Peak Re also strengthens
the cooperation between IFC and Fosun International, whose subsidiaries,
Fosun Pharma and Fosun Development, have obtained two loans of more than
600 million yuan (or $87 million) from IFC’s local currency program.
“The project marks a new chapter in
our strategic partnership with Fosun International,” Devieux said. “We
are committed to supporting our key Chinese clients to expand in the region
IFC also invested $25 million in Fosun
Pharma as part of the company’s initial public offering on the Hong Kong
Stock Exchange in October 2012.
“Together with Fosun’s other insurance
projects, our investment in Peak Re will create an anchor revenue stream
from the insurance business to support our investment activities and transform
our business into a world-class investment group in five to 10 years’
time,” said Guo Guangchang, chairman of Fosun and director of Peak Re.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. We help developing countries achieve sustainable growth
by financing investment, mobilizing capital in international financial
markets, and providing advisory services to businesses and governments.
In FY12, our investments reached an all-time high of more than $20 billion,
leveraging the power of the private sector to create jobs, spark innovation,
and tackle the world’s most pressing development challenges. For more
information, visit www.ifc.org.