11/16/2023 | Press release | Distributed by Public on 11/16/2023 09:57
Lima, Peru, November 16th, 2023. The International Finance Corporation (IFC), a member of the World Bank Group, announced that it will support the issuance of a US$25 million subordinated bond by Protecta Security to increase access to insurance services and long-term savings products in Peru.
By supporting the issuance, IFC will help strengthen Protecta Security's solvency, allowing it to diversify its operations and continue to grow. The financing will also help Protecta Security focus on lower-income segments through digital channels and the development of exclusive insurance products for women, a milestone in Peru.
Mario Ventura, General Manager of Protecta Security, stated: "This operation sends a positive signal to the national and international market, since in addition to being the first bond that IFC subscribes in Peru, it is also the first subordinated bond that IFC subscribes to an insurance company in the world. The issuance will allow us to maintain the growth of the company, generate a greater room of maneuver for financial ratios and strengthen our long-term businesses, such as annuities and private annuities. As our main business is pensions and private annuities, it is key for us to give our clients the security that we have adequate capital solvency, a guarantee of trust and solidity."
Manuela Adl, IFC Acting Country Manager for Peru, stated: "While the insurance industry in Peru is reasonably advanced for some basic and mandatory services, the market linked to long-term instruments is still underdeveloped due to high informality and the lack of profitable distribution channels to reach underserved segments. This bond will allow Protecta Security to contribute substantially to improving Peru's insurance penetration rate, one of the lowest in Latin America."
IFC is committed to universal access to financial services. Insurance companies are instrumental in promoting economic development by reducing financial risks, encouraging capital formation, supporting disaster recovery, facilitating access to credit, and encouraging long-term savings. They also contribute to innovation, risk management and the development of a regulatory framework that guarantees stability and consumer protection.
About Protecta Security
Since August 2015, Inversiones Security Perú, a subsidiary of Security International SpA (Chile), is the controlling shareholder of the company, with a participation to date of 67% in the share capital, while the remaining 33% is owned by the ACP Group. (founding shareholder of the company). Security Internacional SpA is in turn a company belonging to the Chilean holding company "Grupo Security", with operations in various sectors (banking, investments, insurance and corporate services), targeting the financial sector, government, financial intermediaries, transportation and education.
IFC - a member of the World Bank Group - is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.