Sagicor Financial Corp. and the International Finance Corp., a member of the World Bank Group, have reached an agreement in which IFC will invest up to $100 million in Sagicor, subject to regulatory and shareholder approval.
The investment includes up to $20 million in common shares, representing approximately a 4 per cent stake in Sagicor, and up to $80 million in convertible and redeemable preference shares.
It is IFC’s largest ever investment in the insurance sector and its largest investment to date in a single Caribbean entity.
The investment demonstrates confidence in the long-term future of the Caribbean insurance industry following several market failures and a tightening of credit arising from the 2008 global economic crisis, the IFC said in a statement.
“Insurance gives people the security they need to grow businesses and invest in the well-being of their families,” said IFC Executive Vice President and CEO Lars Thunell. “This partnership between IFC and Sagicor will promote greater access to more types of insurance products in the region.”
Sagicor Chairman Stephen McNamara said, “We view this investment, and indeed the level of investment by IFC, as a message of confidence in Sagicor.
“The benefits of this partnership and investment to the wider communities will become evident as Sagicor deploys the funds raised for growth within the region,” he added.