Project description
and objectives:
|
The proposed project envisages that the EBRD subscribes to a capital increase
in Cascade Insurance and Reinsurance Company (the “Company”) to acquire a 35%
stake. The investment will provide additional financing to cover regulatory
capital requirements and to develop the Company’s infrastructure, sales
network and to introduce new commercial and personal lines insurance products.
It is envisaged that, subject to the performance of the Company, the EBRD will
subscribe pro-rata to forecast capital increases between 2006 and 2008.
|
Transition impact:
|
The project will promote the development of, and competition in, the provision
of primarily non-life insurance products in Armenia (where, in 2004, insurance
penetration, measured as gross premiums written as a percentage of GDP, was
estimated at less than 0.2%).
By setting high standards for corporate governance, the project is designed to
assist Cascade Insurance and Reinsurance Company in meeting, and demonstrating
to the market, international standards of transparency and business conduct.
|
The client:
|
Cascade Insurance and Reinsurance Company, a limited liability company
licensed (in January 2005) and operating as an insurance company in Armenia.
The Company is currently a 99.9% owned subsidiary of Cascade Capital Holdings,
Armenia, which is in turn owned by Cafesjian Family Foundation, a US
non-profit tax exempt organisation (501(c)3 designation) set up to promote the
well-being of Armenians and to foster economic development and western
orientated values in Armenia.
|
EBRD finance:
|
Approximately USD 0.5 million equity (including potential capital increases)
|
Total project cost:
|
Approximately USD 1.5 million (including potential capital increases)
|
Environmental impact:
|
The environmental risks associated with Cascade Insurance and Reinsurance
Company’s operations are low. Policies generally exclude environmental
liability, but coverage of environment-related damages is possible in
conjunction with appropriate reinsurance. In order to mitigate environmental
impact the Company will conduct its life insurance operations (both
underwriting and investment activities) in accordance with the EBRD’s
Guidelines for Investments in the Insurance Sector.
|
Technical
cooperation:
|
None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
|
Company contact:
|
Jonathan Stark
Cascade Capital Holdings
5/1 H. Kochar Street
Yerevan 375033
Armenia
Email:
jonathanstark@cascadecapitalholdings.com
|
EBRD contact:
|
Galina Kuzmenkova, Operation Leader: kuzmenkg@ebrd.com
|
Business opportunities:
|
For business opportunities or procurement, contact the client company.
|
General enquiries:
|
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
|
