Proposed US$ 10 million Framework Agreement for individual projects with Interamerican Hellenic Life Insurance Company S.A. (Interamerican) in insurance, health care, pension management, asset management and banking. The projects are expected to be located in south-eastern Europe, which is the main focus of Interamerican's investments outside Greece.
The Framework Agreement with Interamerican will allow the EBRD to establish strong cooperation with an international financial group with solid expansion plans in south-eastern Europe.
The EBRD's investment in Interamerican Romania will support an expanding insurance company in the country, aiming at becoming one of the major Romanian composite insurance companies. Upon full implementation of the company’s new strategy and investment in the training of its sales force, the company's focus on targeting the middle class provides it with a good opportunity to expand its market share.
Interamerican is strongly committed to expanding its insurance, health care, pension fund, asset management and banking operations in south-eastern Europe. While existing companies are established in Romania and Bulgaria, the Albanian, FYR Macedonian and Yugoslav markets are also being considered. Eureko's acquisition of Interamerican has reinforced this commitment.
All countries targeted by Interamerican have undeveloped financial systems. In particular, insurance, pensions and asset management have room for expansion and are in need of support. Strong operators such as Interamerican which are willing to establish a presence in these countries, where foreign investment stands at comparatively low levels, will develop the markets, increase financial intermediation and strengthen the population’s confidence in alternative means of savings, such as life insurance, pensions and mutual funds.
Furthermore, development of well-funded private health care in the region will provide a much-needed alternative to state services and will also offer a viable alternative for insurers which intend to offer health care insurance.
The EBRD believes that Interamerican's investments will not only bring fresh capital to these economies, but will also provide know-how, raise professional standards and enhance the reputation of the targeted sectors. The proposed Framework Agreement will allow the EBRD to support these investments and to have an active role in the corporate governance of such projects.
Interamerican is Greece's largest life assurer, with a market share in excess of 20 per cent, and the fourth-largest non-life insurance company. The sponsor was established in 1969. At the end of 2000 it recorded nearly €1.5 billion in assets while equity was €284 million. Interamerican has been majority owned by the European insurance group Eureko B.V. since May 2001.
The first proposed project under the framework is an investment in Interamerican Romania Insurance Company S.A., a subsidiary of Interamerican and a composite insurer that plans to build up its presence in the Romanian life and non-life business.
Framework Agreement of US$ 10 million for individual projects with Interamerican in insurance, health care, pension management, asset management and banking.
Equity investment of up to 20 per cent of Interamerican Romania. Interamerican will contribute additional equity to the company as part of a capital increase to support the growth of the its operations and finance new product development.
Interamerican will comply with EBRD’s Environmental Guidelines for Multi-Project-Facilities in the Insurance Sector during the appraisal, management and monitoring of its investments. Investee companies will be required to have satisfactory environmental management practices in place and to adhere to EBRD’s Environmental Exclusion List.
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Text of the PIP