DIF - Cascade Insurance and Reinsurance Company (CIRCO)



Project number:


Business sector:

Insurance, Pension, Mutual Funds

Notice type:


Environmental category:


Approval date:

01 Jul 2005



PSD disclosed:

22 Jun 2005

Project Description

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)

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


Company Contact

Jonathan Stark
Cascade Capital Holdings
5/1 H. Kochar Street
Yerevan 375033

Email: jonathanstark@cascadecapitalholdings.com


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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