Manila, October 28, 2004
—The International Finance Corporation, the private sector arm of the World Bank Group, agreed today to provide a $1.5 million quasi-equity investment in a holding company created by Paramount Life and General Insurance Company. PLGIC is a Filipino-owned insurance company with a composite license issued by the Insurance Commission of the Philippines to engage in life and non-life insurance businesses.
Paramount’s strategic vision is to become one of the top insurance companies in the country over the next few years. The IFC investment will support Paramount’s efforts to expand its industry “consolidator” role. It is seizing opportunities in the current global downturn in the industry to acquire Philippine operations of retreating international insurers and domestic companies. Its principal shareholders include the Go family, the Chu family from Cebu and the Tahija family from Indonesia.
“Paramount is a well-managed domestic insurance company. Through this investment, IFC will help Paramount expand and fortify its business operations and allow it to finance strategic acquisitions,” said IFC Executive Vice President Peter Woicke, “IFC supports the government’s efforts to promote healthy industry consolidation to the benefit of consumers.”
Paramount CEO Mr. Patrick L. Go said, “The IFC partnership will provide critical support for our company to distinguish itself. It will further strengthen our
financial resources to continue a path of combined internal and external growth.”
The company was founded in 1950 by Mr. Daniel L. Go, the father of the present CEO Mr. Patrick L. Go and Vice Chairman, Ms. Rosanna L. Go. PLGIC has 27 branch offices in Metro Manila and throughout the Philippine archipelago. The company has focused its business principally on personal lines and on small-medium enterprises in the provincial areas outside the Philippines’ major urban centers.
For more than 40 years, IFC has demonstrated a strong commitment to promoting private sector development in the Philippines. In its fiscal year that ended June 2004, IFC committed $90 million in loans and equity to five investments. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.
The mission of IFC (
www.ifc.org
) 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, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses.
