Summary of Proposed Investment
Project Number
20533
Company Name
CUNA Mutual Group
Date SPI Disclosed
Apr 18, 2003
Country
China
Industry
Financial Markets
Projected Board Date
May 30, 2003
Status
Completed
Sector
General Insurance (Non-Life)
Department
Regional Industry - FIG Asia & Pac
Environmental Category
C - No Impact
Previous Events
Approved : Sep 5, 2003
Signed : Dec 18, 2003
Invested : Mar 2, 2004
Project Description
The project entails an IFC equity investment of up to $12 million for the establishment of a joint venture insurance company in China, the CUNA Rural Credit Cooperative Insurance Company (CUNA or the company). The proposed IFC investment would represent a 15% shareholding in the company. Other shareholders in the company would include CUNA (Credit Union National Association) Mutual Group (CMG) of the U.S., the sponsor and technical partner, with a 36% shareholding. The remaining 49%, pending regulatory approvals, would be held by participating Chinese rural credit cooperative unions (RCCUs). The company will serve the consumer-lending and small-medium enterprises insurance needs of the customers of Chinese rural credit cooperative (RCC) network by providing, among others things, credit life/credit disability products designed for non-mortgage consumer borrowers and improved mortgage insurance products. The first phase of the project is envisioned to be commenced by CMG and IFC in Hong Kong and in phase two the operations of the company would move to China.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Jun Zhang - jzhang@ifc.org
Inho Lee – ilee@ifc.org
Inho Lee – ilee@ifc.org