Protecta, the microinsurance provider of Peru-based microfinance holding company Grupo ACP, reportedly is predicting that it will turn its first annual profit in the year 2012 [1]. Protecta had earlier planned to be profitable by 2014. Protecta, which started operations in 2008, sells life insurance and pension annuities to low-income families, controlling approximately 2 percent of the market among that income level as of 2011.
Protecta currently uses Banco de la Microempresa (Mibanco), the microfinance bank of Grupo ACP, as its main distribution channel. Looking to further increase penetration, it has started working with pharmacies, municipalities and universities to distribute its products. In 2011, Protecta also began partnering in an unspecified manner with the state-run Banco de la Nación, which is reportedly developing microinsurance programs.
The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, holds 16.5 percent of Protecta’s shares. Protecta currently has approximately 850,000 clients. Grupo ACP reported in its 2009 financial statements total assets of PEN 3.09 billion (USD 1.1 billion).
By Nisha Koul, Research Associate
About Banco de la Microempresa (Mibanco): Mibanco, created in 1998, is a private Peruvian bank that aims to assist the development of micro- and small enterprises (MSEs) mainly focusing on the Lima and Callao area. Mibanco offers both credit and savings products through both individual and solidarity group lending methodologies. Loans, which are offered for working capital and fixed asset purchases, range from the equivalent of USD 100 to USD 100,000, with loan terms of 3 to 60 months and interest rates from 25 percent to 50 percent per year. As of December 2010, Mibanco reported to the Microfinance Information Exchange (MIX), the nonprofit US-based data provider, total assets of USD 1.59 billion, a gross loan portfolio of USD 1.3 billion, 402,000 active borrowers, a return on assets of 2.41 percent and a return on equity of 28 percent.
About Grupo ACP: Established in 1969 as Accion Comunitaria del Peru (ACP), Grupo ACP is a holding company with the mission of advancing social inclusion for individuals at the bottom of the economic pyramid. Grupo ACP owns majority stakes in 17 companies that provide financial services including microfinance, housing, infrastructure and microinsurance in nine Latin American countries. Its companies include Mibanco, a microfinance institution (MFI) based in Peru; microinsurance provider Protecta, also in Peru; and Forjadores, an MFI based in Mexico. Grupo ACP reported in its 2009 financial statements total assets of PEN 3.09 billion (USD 1.1 billion).
About International Finance Corporation: A member of the World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries that drive its policies and approve disbursements. As of June 30, 2010, IFC reports net income of USD 1.75 billion, total assets of USD 61 billion, return on assets of 3.1 percent and total investment mobilization of USD 18.4 billion to 528 projects.
Sources and Additional Resources:
[1] Business News Americas, “Protecta on track for first profit in 2012, eyes new distribution channels,” http://www.bnamericas.com/news/insurance/protecta-on-track-for-first-profit-in-2012-eyes-new-distribution-channels
MicroCapital.org story, April 5, 2011, “MICROCAPITAL BRIEF: Peruvian Microfinance Institution (MFI) Mibanco Seeks $60m Syndicated Loan from International Finance Corporation (IFC), Grupo ACP Issues $85m in Bonds,” https://www.microcapital.org/microcapital-brief-peruvian-microfinance-institution-mfi-mibanco-seeks-60m-syndicated-loan-from-international-finance-corporation-ifc-grupo-acp-issues-85m-in-bonds/
MicroCapital.org story, July 6, 2011, “MICROCAPITAL BRIEF: Inter-American Investment Corporation (IIC) Approves $15m Loan to Peru’s Mibanco for Lending to Micro- and Small Enterprises (MSEs),” https://www.microcapital.org/microcapital-brief-inter-american-investment-corporation-iic-approves-15m-loan-to-peru%E2%80%99s-mibanco-for-lending-to-micro-and-small-enterprises-mses/
MicroCapital.org story, March 16, 2009, “MICROCAPITAL STORY: International Finance Corporation (IFC) Acquires 16.5% Stake in Peruvian MicroInsurer Protecta,” https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
MicroCapital Universe Profile: Mibanco, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mibanco
MicroCapital Universe Profile: International Finance Corporation, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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