The BlueOrchard managed InsuResilience Investment Fund and Asia Insurance Company Ltd, an innovative and fast growing general insurance company based in Pakistan, have signed an agreement according to which the Fund will subscribe to a rights issue in the insurance company for a 25% equity stake in the company post-equity injection, taking the company’s total equity to approximately PKR 1.04 billion (approx. USD 9.7 million). Asia Insurance Company is a leading player in agriculture, livestock and farm implements micro-insurance with approx. 44% of its gross written premium in 2016 coming from these areas. The proceeds of the investment will help Asia Insurance Company to grow by increasing the company’s risk capital and supporting its underwriting capacity in agriculture, hereby extending its outreach to low income farmers.
The InsuResilience Investment Fund, as part of the InsuResilience Initiative of the German G7/G20 presidencies, aims to contribute to the adaption to climate change by improving access to and the use of climate risk insurance in developing countries and emerging economies. The Fund has been set up as a public-private partnership and combines private equity and private debt investments.
The investment is subject to regulatory approvals.
“Pakistan experiences various natural disasters and consequences of climate change, but has a low level of insurance coverage, leaving a significant part of its low-income population without protection. We are looking forward to partnering with Asia Insurance Company Ltd, a leading Pakistani insurance company, to extend the insurance coverage of poor and vulnerable households” says Ernesto Costa, Co-Head of Private Equity at BlueOrchard.
“The agriculture sector directly and indirectly makes up a large portion of Pakistan’s economy. Now more than ever, with our country being impacted by recurring natural calamities, the need for extensive loss mitigation for this sector is paramount. Asia Insurance has been actively involved in providing coverage for farmers, crops, tractors and other various factors of this sector for 5 years, and with InsuResilience Investment Fund’s investment, will expand our outreach and our range of insurance products for this market with a view to innovative solutions tailored to Pakistan’s needs” says Ihtsham ul-Haq Qureshi, CEO of Asia Insurance Company Ltd.
About InsuResilience Investment Fund
Luxembourg based InsuResilience Investment Fund has been set up by KfW, the German Development Bank, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). The overall objective of the InsuResilience Investment Fund is to contribute to the adaptation to climate change by improving access to and the use of insurance in developing countries. The specific objective of the fund is to reduce the vulnerability of low-income households and micro, small and medium enterprises (MSME) to extreme weather events. The InsuResilience Investment Fund has been set up as a public-private-partnership and combines private debt and equity investments in two separately investible sub-funds as well as technical assistance and premium support. The fund aims at both financial return and social impact. For further information, please visit: www.insuresilienceinvestment.fund
About Asia Insurance Company Ltd
Asia Insurance Company Ltd is a general insurance company based in Lahore, authorized and supervised by the Insurance Division of the Security Exchange Commission of Pakistan. The company is listed on the Pakistan Stock Exchange. Established in 1979, Asia Insurance Company offers a wide range of insurance products in Agriculture, Motor, Fire, Marine, Health and Travel. For further information, please visit: www.www.asiainsurance.com.pk
About BlueOrchard Finance Ltd
BlueOrchard Finance is a leading global impact investment management firm dedicated to fostering inclusive and sustainable growth while providing attractive returns for its investors. BlueOrchard offers premium multi-asset class solutions and is an expert in innovative blended finance and public-private-partnership mandates. With a major presence in emerging and frontier markets and offices on four continents, BlueOrchard helps its partners around the world make profound investment decisions and meet their objectives.
Founded in 2001 by initiative of the UN, BlueOrchard was the first commercial manager of microfinance debt investments. The firm has utilized its know-how and experience to steadily expand into asset classes including credit, private equity, and sustainable infrastructure. To date, BlueOrchard has invested more than USD 4bn across 70 emerging and frontier markets, enabling fundamental social impact. BlueOrchard Finance is a licensed Swiss asset manager authorized by the FINMA. Its Luxembourg entity is a licensed alternative investment fund manager (AIFM) authorized by the CSSF. For additional information, please visit: www.blueorchard.com.