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| COMAR Algeria |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment 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. Board dates are estimates only. |
| Project number | 27523 |
| Company name | Cie Mediterraneenne d'Assurances et de Reass. |
| Country | Algeria |
| Sector | Finance & Insurance |
| Environmental category | C |
| Department | Global Financial Markets Group |
| Status | Pending Approval |
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| Date SPI disclosed | January 12, 2009 |
| Projected board date | February 11, 2009 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| The proposed Project consists of an IFC partnership with Compagnie Méditerranéenne d'Assurances et de Réassurances (“COMAR” or the “Sponsor”), the largest private insurance company in Tunisia, to create a greenfield non-life insurance company in Algeria, COMAR Algeria (the “Company”). IFC’s investment will consist of equity of up to DZD 90 million ($1.4 million equivalent). COMAR Algeria will be established as non-life insurance company and will start with direct and brokered sales focused on major urban areas, initially starting in Algiers and subsequently expanding into the next largest cities in Algeria, Constantine and Oran. COMAR Algeria will offer insurance products covering automobiles, transport and multi-risk. |
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| Project sponsor and major shareholders of project company |
| The Project sponsor and largest shareholder is COMAR, the leading private insurer in Tunisia. Other founding shareholders of COMAR Algeria will include Amen Bank (a private Tunisian bank), Tunisie Leasing (a leading leasing company in Tunisia) and IFC. COMAR has been in operation in the non-life segment since 1973 and is controlled by the Ben Yedder family, one of the oldest business families in North Africa. With total assets of around $285 million, COMAR employs 233 staff including 151 insurance professionals and managers. |
| Total project cost and amount and nature of IFC's investment |
| The project cost for the establishment of the capital of COMAR Algeria is DZD 450 million ($7.1 million equivalent), the minimum capital requirement for non-life insurance companies in Algeria. The proposed IFC investment is a DZD 90 million ($1.4 million equivalent) for a 19.9% share of the Company’s capital. |
| Location of project and description of site |
| COMAR Algeria will be headquartered in Algiers, the capital of Algeria. The Company will operate through branches and general agencies in urban areas of the three largest cities: Algiers, Constantine and Oran. During its first year of operations COMAR plans to establish two branches in Algiers (including the headquarter) and one in Oran. |
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| Anticipated development impact of the project |
| The creation of COMAR Algeria will support south-south investment, including the development of a more integrated financial sector across the Maghreb. COMAR Algeria will stimulate increased competition in a market dominated by large public sector players, by introducing new products, lowering prices, and increasing competitiveness of all players in the local market. In an emerging market like Algeria, a robust, competitive insurance sector is crucial to the sustainable growth of the country’s economy. |
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| IFC's expected development contribution |
- Local Presence: IFC will be the only institutional shareholder with a local presence in Algeria, which adds tremendous value to the Project by bringing IFC’s expertise on the Algerian market as well as its ability to effectively intermediate with public authorities on structural obstacles to the development of a vibrant insurance industry.
- Enhance the Profile of COMAR: the proposed investment will help enhance the profile of COMAR Algeria and improve the risk and operational capacity perception of the institution, thus possibly allowing COMAR Algeria to strengthen its insurance platform and penetration. |
| Environmental and social issues - Category C |
| The proposed Project consists of IFC’s equity investment in a greenfield non-life insurance company and has been classified as a Category C project according to IFC’s Environmental and Social Review Procedure. The Company will be required to adopt IFC’s FI Exclusion List. The Company is required to inform IFC in the event of any change in nature or scope of its business or operations. |
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| For inquiries about the project, contact: |
Name: Karim BOUGHEDIR
Title: Finance Director
Telephone Number: +216 71 340 899 (Poste 1423)
Fax Number: +216 71 331 238
Address : Immeuble COMAR - Avenue Habib BOURGUIBA - 1001 Tunis – Tunisia |
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| 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 |
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