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| This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. |
Summary of Project Information (SPI) |
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| Project number | 11286 |
| Project name | Insurance Institute of Albania |
| Country | Albania |
| Sector | Finance & Insurance |
| Department | Global Financial Markets Group |
| Company name | Insurance Institute of Albania |
| Environmental category | C |
| Date SPI disclosed | April 23, 2002 |
| Projected board date | June 20, 2002 |
| Status | Active |
| Previous Events | Invested: July 13, 2004
Signed: October 28, 2003
Approved: June 20, 2002 |
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| Project sponsor and major shareholders of project company |
| The project sponsor is Instituti I Sigurimeve Sh.A (INSIG or the company), Albania's leading insurance company. The company is currently a 100% owned by the government of Albania. |
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| Total project cost and proposed IFC investment |
| The proposed IFC equity investment is estimated at US$10 million. |
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| Location of project and description of site |
| INSIG is headquartered in Tirana with branches and agencies throughout Albania and Kosovo. |
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| Description of company and purpose of project |
INSIG is Albania's leading insurer providing property and causality (P&C) as well as life insurance products with its P&C business accounting for over four-fifth of its premiums. The project involves the privatization of INSIG via divestment for a combination of technical partner and strategic investor. There will be an initial sale of 40% of the share capital, of which 20% will be purchased by IFC (subject to a maximum cost of US$10 million equivalent) and 20% by another multilateral development bank. This will be followed by the sale of an additional 51% of share capital to a strategic investor within the next two years.
IFC has an important role in the project by serving as a catalyst for the introduction of a reputable technical partner and providing credibility to the privatization process.
The project has a number of developmental benefits. First, by facilitating the company's association with a reputable partner, it would strengthen INSIG's operations, management and information systems. Second, by helping build a strong market-driven insurance player, the project would have a demonstration effect in terms of liberalization, product diversification and best practice of corporate governance. Third, by establishing an efficient locally owned and operated insurance company, the project would expand the level of domestic investment. |
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| Environmental and social issues - Category C |
This is a Category C project, according to IFC’s Procedure for Environmental and Social Review of Projects, because it is likely to have minimal or no adverse environmental impacts.
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| To contact the project company, please write to: |
Instituti I Sigurimeve Sh.A
General Manager
Rruga e Dibres 91
Tirana, Albania |
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