Summary of Proposed Investment
Project Number
24319
Company Name
ING Life Russia
Date SPI Disclosed
Nov 29, 2006
Country
Russian Federation
Industry
Financial Markets
Projected Board Date
Jan 25, 2007
Status
Completed
Sector
Life Insurance
Department
Regional Industry FIG LAC & EUR
Environmental Category
C - No Impact
Previous Events
Approved : Feb 15, 2007
Signed : Jun 20, 2007
Invested : Aug 8, 2008
Project Description
The project consists of an equity investment of up to approximately EUR 22.2 million ($ 28.5 million equivalent) for a 10% stake in ING Life Insurance ZAO, a life insurance company to be newly established in Russia by the ING Group.
EBRD will also hold a 10% equity stake with ING holding the remaining 80%. The company is expected to require equity financing of EUR 222 million over a 10 year period to support its business plan. The life insurance market in Russia is in a nascent stage of development, both in terms of size and sophistication of the industry. Reported life insurance premiums are small relative to population size but the true life insurance market is even smaller due to the inclusion of a high volume of artificial tax motivated arrangements within the official statistics. The proposed project is expected to have a strong development impact by promoting the value of life assurance and the growth of the industry through a highly respected international player which will operate to high standards. IFC has a strong role in this project in supporting the entry of a global insurance major such as ING into an underdeveloped and challenging market. IFC’s support will serve as a signal of its confidence in the long term prospects of this market.
EBRD will also hold a 10% equity stake with ING holding the remaining 80%. The company is expected to require equity financing of EUR 222 million over a 10 year period to support its business plan. The life insurance market in Russia is in a nascent stage of development, both in terms of size and sophistication of the industry. Reported life insurance premiums are small relative to population size but the true life insurance market is even smaller due to the inclusion of a high volume of artificial tax motivated arrangements within the official statistics. The proposed project is expected to have a strong development impact by promoting the value of life assurance and the growth of the industry through a highly respected international player which will operate to high standards. IFC has a strong role in this project in supporting the entry of a global insurance major such as ING into an underdeveloped and challenging market. IFC’s support will serve as a signal of its confidence in the long term prospects of this market.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mr. Jaroslaw Bartkiewicz
Head of Business Development
Jaroslaw.Bartkiewicz@mail.ing.nl
Mr. Assad Ben Halima
Senior Business Manager
Assad.Ben.Halima@mail.ing.nl
Regional Office Insurance Central Europe
Business Development & Strategy
P.O. Box 1800
1000 BV Amsterdam
ACT A.15.054
Tel: +31 20 576 0845
Head of Business Development
Jaroslaw.Bartkiewicz@mail.ing.nl
Mr. Assad Ben Halima
Senior Business Manager
Assad.Ben.Halima@mail.ing.nl
Regional Office Insurance Central Europe
Business Development & Strategy
P.O. Box 1800
1000 BV Amsterdam
ACT A.15.054
Tel: +31 20 576 0845
For Inquiries and Comments About IFC, Contact
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster