The International Finance Corporation (IFC), the investment arm of the World Bank, and the Inter-American Investment Corporation (IIC), a member of the Inter-American Development Bank (IDB) that helps small and medium-sized enterprises (SMEs) gain access to finance, will make equity investments totaling USD 27 million in QBE del Istmo Compañía de Reaseguros, a Panama-based reinsurance company, to cover new products such as microinsurance and health insurance as well as increase its capital base, improve corporate governance standards and expand operations. As a reinsurance company, QBE del Istmo is paid a premium by small and medium-sized insurance companies to undertake some of their risk. It is unclear whether the new product lines indicate an expansion of reinsurance services to institutions or an entry into directly serving retail customers. IFC’s investment will consist of up to USD 9 million in common equity stock and up to USD 10 million in preferred stock, while IIC will invest USD 8 million. QBE del Istmo operates in more than 20 countries in Latin America and the Caribbean. As of December of 2009, it had written premiums of USD 164 million and shareholder equity totaled USD 81.9 million.
By Christopher Maggio, Research Assistant
About
International Finance Corporation (IFC)
Description
A member of the World Bank Group, the International Finance Corporation (IFC) uses loan and debt securities, equity investments and guarantees as instruments of poverty alleviation. It “invests in companies and financial institutions in emerging markets” as well as providing technical assistance. The IFC has 182 member countries that “collectively determine its policies, and approve investments.” In fiscal year 2009, its new investments totaled USD 14.5 billion.
About
Inter-American Investment Corporation (IIC)
Description
Founded in 1985, the Inter-American Investment Corporation (IIC) is a member of the Inter-American Development Bank (IDB) group that helps small and medium-sized enterprises (SMEs) in Latin America and the Caribbean gain access to financial services. Since its inception in 1985, as of April 9, 2010, IIC has distributed USD 5.1 billion to 1.1 million SMEs. Additionally, IIC has provided technical assistance and consulting to about 300 SMEs.
About
QBE del Istmo Compañía de Reaseguros
Description
QBE del Istmo Compañía de Reaseguros is a Panama-based reinsurance company, meaning that it is paid a premium by small and medium-sized insurance companies to undertake some of their risk. As of March 30, 2010 it will begin to cover microinsurance and health insurance. It operates in more than 20 countries in Latin America and the Caribbean. As of December of 2009, QBE del Istmo had written premiums of USD 164 million and shareholder equity totaled USD 81.9 million.
Additional Resources
IFC press release entitled ‘IFC Investment in QBE del Istmo Will Support the Insurance Sector in Latin America’: http://www.ifc.org/ifcext/media.nsf/content/SelectedPressRelease?OpenDocument&UNID=9FC38A35D6936FDF852576F600734E00
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