The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, recently agreed to invest up to USD 100 million in Sagicor Financial Corporation, a financial institution based in Barbados, to develop the market for insurance products in the Caribbean. The investment will consist of USD 20 million of common shares, which is equivalent to a four percent stake in Sagicor, as well as up to USD 80 million in convertible and redeemable preferred stock. The deal is in line with IFC’s goal of increasing the availability of insurance products to low-income individuals, small businesses, agribusinesses and microfinance institutions (MFIs). Sagicor Chairman Stephen McNamara expressed confidence in the future of the Caribbean insurance industry saying, “The benefits of this partnership and investment to the wider communities will become evident as Sagicor deploys the funds raised for growth within the region.” Sagicor operates in 22 countries in the Caribbean, Latin America, the United Kingdom and the United States. As of 2009 Sagicor reported market capitalization of USD 507 million.
By Julie Moksim, Research Associate
About the International Finance Corporation (IFC): The International Finance Corporation (IFC) is a member of the World Bank Group that was created to support private sector development, mobilize private capital and provide advisory and risk mitigation services to businesses and services. 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 reported net income of USD 1.75 billion, total assets of USD 61 billion and return on assets of 3.1 percent.
About Sagicor Financial Corporation: Sagicor is a financial institution that was established in 1840 in Barbados as the Barbados Mutual Life Assurance Company. In 2002, a reorganization of the company led to the establishment of Sagicor Financial Corporation as a publicly listed holding company. Sagicor operates in 22 countries in the Caribbean, Latin America, the United Kingdom and the United States. Sagicor’s insurance subsidiaries are Sagicor Life Incorporated, Sagicor Capital Life and Sagicor Life Jamaica. As of 2009 Sagicor reported net income attributable to shareholders of USD 51 million and market capitalization of USD 507 million.
Sources and Additional Resources:
International Finance Corporation (IFC) Press Release: “IFC Makes Largest-Ever Insurance Investment, Providing $100 Million to Barbados-Based Sagicor”, March 31, 2011, http://www.ifc.org/ifcext/media.nsf/content/SelectedPressRelease?OpenDoc…
MicroCapital.org Brief, August 31, 2010: International Finance Corporation (IFC) and IFC African, Latin American and Caribbean Fund Make $75m Equity Investment in Insurance Sector Activities of Caribbean-Based Guardian Holdings Limited, https://www.microcapital.org/microcapital-brief-international-finance-cor…
MicroCapital’s Microfinance Universe Profile: International Finance Corporation (IFC)
MicroCapital’s Microfinance Universe Profile: Sagicor Financial Corporation
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Sagicor+Financial+Corporation
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