Project description
and objectives:
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The original project envisaged subscription to equity in Renaissance Life Insurance to acquire a 30% stake. The investment provided financing to cover regulatory capital requirements and to finance the start-up costs of the company. Renaissance Life Insurance sells risk-bearing life insurance products to individual customers, primarily via a network of trained agents.
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Transition impact:
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The project promotes the development of, and competition in, the provision of risk-bearing life Insurance products (where current penetration is significantly less than 1% of GDP), initially to individuals in the larger Russian conurbations and ultimately to the wider Russian market.
By setting high standards for corporate governance, the project is designed to assist Renaissance Life Insurance in meeting, and demonstrating to the market, international standards of transparency and business conduct.
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The client:
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Renaissance Life Insurance, a limited liability company formed in Russia.
The project company’s ultimate parent company is the Sputnik Group Limited (Bahamas), which also operates in the Russian non-life insurance industry via its subsidiary Renaissance Insurance Group.
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EBRD finance:
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An initial equity commitment by the EBRD amounted to approximately US$ 3 million for a 30% equity stake. The EBRD to date participated pro-rata in planned capital increases bringing its total equity investment up to US$ 14.3 million.
Further capital increases of up to USD 15 million are proposed for 2008-2012. The capital increases will be utilised for development of a new pension business through Renaissance Life and Pensions, a wholly owned pension subsidiary of the Renaissance Life Insurance, and for further development of the life business.
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Total project cost:
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Approximately US$ 90 million.
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Environmental impact:
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The environmental risks associated with Renaissance Life Insurance’s operations are low. However, in order to mitigate environmental impact Renaissance Life Insurance conducts its life insurance operations (both underwriting and investment activities) in accordance with the EBRD’s Guidelines for Investments in the Insurance Sector.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Austin Kimm, President
Renaissance Life Insurance
7, building 22, Derbenevskaya naberezhnaya
Moscow 115114
Tel: +7 495 981 2 981
Fax +7 495 589 1867
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EBRD contact:
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Vladimir Klechtchev, Operation Leader: klechtcv@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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