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| Advantage General Insurance Company |
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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 | 27314 |
| Company name | Advantage General |
| Country | Jamaica |
| Sector | Finance & Insurance |
| Environmental category | C |
| Department | Global Financial Markets Group |
| Status | Pend PDS-IR |
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| Date SPI disclosed | November 11, 2008 |
| Projected board date | December 12, 2008 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
The project consists of an investment package of up to $20 million to Advantage General Insurance Company (AGIC) to support the company’s growth and expansion in the Caribbean region.
The project will help AGIC to consolidate its position in Jamaica, building on the positive operational and financial results recorded since it was acquired by AIC (Barbados) Limited in 2006. The project will also assist AGIC to scale up organically and through acquisitions in Jamaica and within the Caribbean region. |
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| Project sponsor and major shareholders of project company |
| The project sponsor is AGIC, 80% beneficially owned by Michael Lee Chin through AIC (Barbados) Limited. |
| Total project cost and amount and nature of IFC's investment |
| The estimated size of IFC’s investment is up to $20 million comprising preferred shares. |
| Location of project and description of site |
| AGIC is headquartered in Kingston, Jamaica, and has a wide network of offices throughout the country. |
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| Anticipated development impact of the project |
The project is expected to have the following developmental impact:
- Increasing the availability of insurance services in Jamaica and possibly other countries in the Caribbean region;
- Enhancing the capacity of the leading local motor insurance company in Jamaica to grow its product and client base in Jamaica and expand regionally; and
- Catalyzing national savings and deepen the capital markets through the company’s increased investment of excess premiums. |
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| IFC's expected development contribution |
IFC’s role in the project is to:
- Strengthen the company’s capital base: IFC will provide capital support to the company thereby strengthening its position to meet regulatory solvency requirements;
- Leverage existing company capabilities: As the leading and most profitable local motor underwriter in Jamaica, IFC will enable AGIC to expand more rapidly and meet growing local and Caribbean markets’ insurance needs thus providing more affordable insurance services to smaller regional economies; and
- Enhance the company’s institutional capacity: IFC’s presence as a shareholder of AGIC will provide a strong endorsement which can contribute to enhancing AGIC’s market profile and strengthen the local regulator’s assessment of the company. IFC can also make a direct contribution to the institutional capacity of the company by making resources and information available that would assist AGIC to enhance its corporate governance framework and adopt international insurance best practices. |
| Environmental and social issues - Category C |
| This project entails IFC support of general insurance and has been classified as a Category C project according to IFC’s Environmental and Social Review Procedure. No further review is required. The project 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: |
Mr. Mark A. Thompson
President & CEO
Advantage General Insurance Company Limited
4-6 Trafalgar Road, Kingston 5, Jamaica
Tel.: +1 876 978 3690-9
Fax: +1 876 978 3718
E-mail: ThompsonMA@advantagegeneral.com |
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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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