Lima, November 26, 2014 - The International Finance Corporation (IFC), a member of the World Bank Group, is preparing to invest $18 million in La Positiva Seguros Generales, in the form of a convertible subordinated loan in order to encourage the expansion of the insurance industry to the most disadvantaged population groups in Peru.
For Gustavo Cerdeña, the CEO of La Positiva Seguros Generales, this investment by IFC "demonstrates both institutions' focus on expanding insurance services to reach the most disadvantaged population groups, and in particular those located in the provincial cities."
One of the main reasons considered by IFC for this investment was the leadership shown by La Positiva Seguros Generales in the microinsurance sector, which entails providing easily accessible, practical, and economical insurance to low-income families. IFC also took into account the efforts by La Positiva Seguros Generales to pay insurance claims with a strong social component, such as the benefits received by over 100,000 families through a farmers insurance program covers climatic events, and 40,000 consultations annually through Peru's mandatory automobile insurance known as SOAT, among others.
"This investment strengthens the long-term relationship between IFC and La Positiva Seguros aimed at supporting the growth of La Positiva and its efforts to promote the growth of the insurance sector to include underserved sectors of the population," said Carlos Leiria Pinto, IFC Head for the Andean Region.
In the same vein, the marketing strategy employed by La Positiva Seguros Generales was enhanced through its presence at more than 2,000 points of sale nationally and its innovative products, which are made available on the market through its strategic partners.
The investment has already been approved by the IFC Board of Directors, and both La Positiva and IFC continue to work toward completing the operation.
IFC has invested a total of $3,100 million in Peru since 1956, when Peru became a member country, including $1,100 million in funding mobilized. IFC's strategy in Peru aims to improve the investment climate and support key players in Peru's private sector that can expand the country's infrastructure as well as products and services to underserved sectors, for example by expanding access to finance for micro, small, and medium enterprises (MSMEs), as well as access to housing and education finance.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in over 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY 2014, we provided more than US$22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development.www.ifc.org.