IFC’s first-ever direct investment in the health insurance sector will help promote international standards
Tbilisi, Georgia, June 13, 2011
—IFC, a member of the World Bank Group, is investing $3 million in equity in Archimedes Health Developments to help expand access to health insurance and health services in Georgia and other emerging markets in Eastern Europe and Central Asia.
Through its first direct investment in the health insurance sector, IFC will become a minority shareholder of Archimedes Health Developments, a newly-created company established by Archimedes Global. IFC's investment along with $2 million additional financing from Archimedes Global will enable the new company to establish health clinics and to work with Archimedes Global Georgia to expand its health insurance business.
IFC’s investment will also support Archimedes Global’s health insurance and health services business in Kazakhstan, and the company’s entry into new markets in Eastern Europe and Central Asia. IFC’s investment will help increase financial protection for people needing health care and promote transparency of payments in the local health sector.
“This investment marks an important step in our expansion in Georgia and within Eastern Europe and Central Asia, especially in countries that have the greatest potential for high-quality health insurance,” said Doron Inbar, Chairman of Archimedes. "The validation of our business model by the leading international finance institution focused on private sector development will be instrumental to our efforts to expand our activities in larger markets and raise additional funding."
Archimedes Global Georgia’s team has significant operational experience in the health sector, with strong technical skills related to insurance and health services.
“Private health insurance is one of the integral elements of a mature insurance market,” said Ed Strawderman, IFC Senior Manager, Financial Markets, Europe and Central Asia. “It leads to better quality, transparent, and efficient healthcare. This will be IFC’s first investment in health insurance and we believe it will help to further promote top international standards and attract other investors to the insurance market.”
IFC’s cumulative investments in Georgia since 1995 total nearly $500 million in 36 projects across a variety of sectors. Through its Advisory Services, IFC is working towards reform of Georgia’s tax system to benefit small businesses, and is also helping raise food safety standards. Georgia has been a member of IFC since 1995.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
www.ifc.org
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About Archimedes Global Ltd
Archimedes Global was founded in 2007 by Yaron Inbar. The first round investment was led by the Viola Group. Leumi Partners and Mr. Shuki Madanes are among the founding investors with other investors from Israel and abroad. Archimedes owns three insurance companies, in Kazakhstan, Greece and Georgia. In addition, the company is active in providing health services that complement insurers’ activity. Net income totaled in 2010 more than $20 million. Archimedes plans to expand its operations to further markets in Central and Eastern Europe, for that purpose the company will seek further capital expansion. For more information, visit:
www.archimedes-insurance.com
