Summary of Proposed Investment
Project Number
8486
Company Name
Commercial International Life Insurance Company S.A.E
Date SPI Disclosed
Nov 11, 1997
Country
Egypt, Arab Republic of
Industry
Financial Markets
Status
Completed
Sector
Life Insurance
Department
Global Industry, Financial Markets
Environmental Category
C - No Impact
Previous Events
Approved : Oct 23, 1998
Signed : Jul 18, 1999
Invested : Oct 13, 1999
Project Description
Summary Of Project Information (SPI)
| Project Name | Egypt-Commercial International Life Insurance Company |
| Region | Central Asia, Middle East and North Africa |
| Sector |
Projected Board DateDecember 15, 1997
Company NameCommercial International Life Insurance Company (an affiliate of Legal & General Group Plc.) (Proposed)
Technical Partner and/or Major Shareholders
1. Commercial International Bank (CIB): CIB is the largest private sector wholesale bank in Egypt.
2. Legal & General Group Plc. (L&G): L&G is one of the largest insurance companies worldwide and the second largest life insurance company in the UK, enjoying a AAA rating from S&P and AA1 from Moody’s.
Project Cost Including proposed IFC investment
Commercial International Life Insurance Company (an affiliate of Legal & General Group Plc.), to be established, with a maximum authorized capital of LE 100 million (US$30 million equivalent). IFC investment of up to LE 10 million (US$3 million equivalent) in CILIC for a 10% stake in the new Company.
Location of project and Description of site
Cairo, Egypt
Description of Company and Purpose of Project
IFC’s role in the project is multi-faceted. Firstly, IFC has introduced the L&G to CIB and is serving its traditional “honest broker” and “neutral partner” role. Secondly, IFC’s involvement provides a comfort to CIB, L&G and Government of Egypt (GOE). Thirdly, IFC’s continued advice and dialogue with the regulators on matters relating to financial sector development are viewed as being important by all parties to suggest further changes in the insurance sector, which would benefit positively both the industry and the country’s capital markets.
The development impact of this project will be substantial, as: (a) it will establish Egypt’s first joint-venture life insurance company (existing players are either effectively subsidiaries of international companies or local firms without international expertise), providing a strong demonstration effect for others; (b) it will develop further local investment and resources, stemming the outflow of potential investment resources from the country; and (c) as a key component of development of the capital markets, the development of a life insurance market in Egypt is expected to have significant downstream impact on the development and emergence of related financial services, particularly the pensions and investment management businesses.
Environmental Category and Issues
This is a category C project according to IFC’s environmental review procedure. No further environmental review is required.
| Date SPI sent to PIC | November 11, 1997 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Sponsor / Cost / Location
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