Summary of Proposed Investment
Project Number
29356
Company Name
ARCHIMEDES HEALTH DEVELOPMENTS LIMITED
Date SPI Disclosed
Jun 14, 2010
Country
Southern Europe Subregion
Industry
Financial Markets
Projected Board Date
Aug 8, 2010
Status
Active
Sector
General Insurance (Non-Life)
Department
Regional Industry FIG LAC & EUR
Environmental Category
FI
Previous Events
Approved : Apr 13, 2011
Signed : Jun 3, 2011
Invested : Aug 10, 2011
Project Description
The proposed project (the “Project”) supports the development of the health insurance sector in Eastern Europe and Central Asia through: (i) strengthening the capital structure of a regional health insurance player Archimedes Global Ltd. (“AGL” or the “Company”); and (ii) supporting AGL’s growth throughout the region. The Project fits well with the IFC’s strategy to support insurance companies that have a regional strategy and approach rather than a country level focus; so that markets benefit from economies of scale and replication of best practices. IFC strategy in healthcare is focused on: (i) direct investments in centers of excellence and networks of clinics; and (ii) wholesale facilities in conjunction with CGF targeting healthcare SMEs. Development of private health insurance is conducive to the growth of private healthcare provision and to better quality, transparency and efficiency of healthcare.
AGL’s business strategy is to acquire and/or partner with local players in markets with underdeveloped private health insurance sector (predominantly, in Southern and Southeastern Europe and in former Soviet Union) to capitalize markets’ growth potential. The Company may invest in greenfield operations in promising markets where no acquisition targets can be identified. AGL is currently active in three countries (Greece, Kazakhstan and Georgia) and requires new capital to: (i) grow its existing operations and to comply with capital requirements; and (ii) continue acquiring targets in the region.
IFC’s investment case is based on the following: (i) Equity upside due to geographic expansion plans to enter health insurance market in Bulgaria, Ukraine and Turkey within the next 12-18 months; (ii) Integrated business model: AGL owns an outpatient clinic in Kazakhstan which allows it to deliver a better-quality health care and control costs at the same time. AGL plans to build a second clinic in Kazakhstan and to replicate this model in other countries. In addition to supporting its core health insurance operations AGL plans to capitalize on expected growth of private health care provision in these markets; (iii) pro-active and professional approach to managing access to care and medical facilities and controlling costs of necessary services and treatment; (iv) strong and committed sponsors; and (v) high developmental impact. Health insurance is a highly developmental sector and one that has been difficult to find viable opportunities for IFC to support
AGL’s business strategy is to acquire and/or partner with local players in markets with underdeveloped private health insurance sector (predominantly, in Southern and Southeastern Europe and in former Soviet Union) to capitalize markets’ growth potential. The Company may invest in greenfield operations in promising markets where no acquisition targets can be identified. AGL is currently active in three countries (Greece, Kazakhstan and Georgia) and requires new capital to: (i) grow its existing operations and to comply with capital requirements; and (ii) continue acquiring targets in the region.
IFC’s investment case is based on the following: (i) Equity upside due to geographic expansion plans to enter health insurance market in Bulgaria, Ukraine and Turkey within the next 12-18 months; (ii) Integrated business model: AGL owns an outpatient clinic in Kazakhstan which allows it to deliver a better-quality health care and control costs at the same time. AGL plans to build a second clinic in Kazakhstan and to replicate this model in other countries. In addition to supporting its core health insurance operations AGL plans to capitalize on expected growth of private health care provision in these markets; (iii) pro-active and professional approach to managing access to care and medical facilities and controlling costs of necessary services and treatment; (iv) strong and committed sponsors; and (v) high developmental impact. Health insurance is a highly developmental sector and one that has been difficult to find viable opportunities for IFC to support
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Yaron Inbar, Managing Director
96 Yigal Alon st. Tel Aviv, 67891, Israel.
+ (972) 3 - 5616555 Fax: + (972) 3 – 5616558
yaron@archimedes-insurance.com
www.archimedes-insurance.com
96 Yigal Alon st. Tel Aviv, 67891, Israel.
+ (972) 3 - 5616555 Fax: + (972) 3 – 5616558
yaron@archimedes-insurance.com
www.archimedes-insurance.com
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