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.
