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Sao Paulo, Brazil – September 27, 2010
—IFC, a member of the World Bank Group, is partnering with the Swiss Reinsurance Company to invest $40 million in UBF Seguros, a leading player in Brazil’s surety and agricultural insurance business.
The investment will help UBF Seguros compete in the fast-growing specialty insurance market in Brazil, where significant investments in infrastructure, energy, and agriculture are driving demand. It positions Swiss Re as the Sao Paulo-based company’s majority shareholder and IFC as its sole minority investor.
"This is both strategically and financially a very attractive transaction that creates significant value for UBF Seguros,” said Luiz Foz, Chief Executive Officer of UBF Seguros. "The endorsement by a global industry leader like Swiss Re and an investor with the reputation of IFC provides a powerful business combination offering tremendous opportunities to strengthen our franchise and to deliver solutions to the Brazilian market."
The liberalization of Brazil’s (re)insurance market has increased competition and the need for product innovation, underwriting expertise, and risk management.
“Swiss Re has supported UBF Seguros since its founding and will continue to do so by strengthening its capital base, further deploying our technical know-how, and capacity, and by helping the company expand into other specialty lines of business,” said Rudi Flunger, Head of Swiss Reinsurance Company’s Insurance and Specialty Division. “This transaction reflects our commitment to the Brazilian market, where we have been doing business for more than 60 years, and creates the opportunity to strengthen our partnership with IFC.”
The investment, IFC’s first in the insurance sector in Brazil, will help develop infrastructure projects by expanding the surety market. It will also help develop new insurance products for agro-insurance, increasing access to private and public insurance schemes that will reach more than two million farmers.
“This equity investment in UBF strengthens the global strategic relationship between IFC and Swiss Re,” said Loy Pires, IFC Country Manager for Brazil. “By facilitating the expansion of the surety market we expect to help alleviate infrastructure bottlenecks in Brazil, support agricultural producers, and help increase incomes in rural areas around the country."
Closing of the transaction is subject to local regulatory approvals.
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 UBF Seguros
UBF Seguros is a Brazilian insurance company specializing in surety and agriculture insurance. The company has more than 12 years of experience in the underwriting of surety products such as contractual, commercial and completion bonds. UBF Seguros also offers a wide range of agriculture insurance products including crop, livestock, forestry, bloodstock and farm property. For more information, visit
www.ubf.com.br
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About Swiss
Reinsurance Company
Swiss Re is one of the world's largest and most diversified reinsurers. The company operates through offices in more than 20 countries. Founded in Zurich, Switzerland in 1863, Swiss Re offers financial services products that enable the risk-taking essential to enterprise and progress. In addition, Swiss Re has broad, global insurance capabilities, including solutions for commercial insurance, industrial insurance, large corporate risks, aviation and space and environmental and commodity markets. Swiss Re offers structured, multiline programs and can customize its offerings in order to help clients mitigate their most complex risks. Swiss Re also offers insurance-linked securities and catastrophe bonds, and has among the highest available capacity in the industry. Swiss Re is rated “A+“ by Standard & Poor’s, “A1” by Moody’s and “A” by A.M. Best. For more information, visit
www.swissre.com/insurance
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