IFC keen on investing up to $15M in National Reinsurance

The International Finance Corp.(IFC), the investment arm of the World Bank, has expressed interest to invest as much as $15 million in National Reinsurance Corp. of the Philippines (NatRe).

NatRe is the largest professional reinsurance company in the country.

NatRe officials said they already had exploratory talks with IFC but nothing concrete has come out of the negotiations yet.

The company, however, is open to entertaining other foreign strategic partners as it seeks to further cement its dominant position in the industry, the officials added.

NatRe is eyeing a net income of P627 million this year or almost double the P316 million profit reported in 2006.

Gross premiums are forecast to reach P5.21 billion from only P3.88 billion in 2006 while investment and other income is seen to hit P506 million from P343 million.

NatRe is building its capital base to at least P5 billion from the current P3 billion as it seeks to become a regional player in the reinsurance market.

The capital build-up program which started in 2005 involves the sale of its shares through an initial public offering (IPO) of 638 million common shares, representing 30.7 percent of the company’s outstanding capital stock. The shares will be sold at a price ranging from P3.36 to P4.62 each to raise between P2.14 billion and P2.95 billion in proceeds.

Domestic roadshows will be held on April 10 and 11 with the offer price expected to be set on April 12. The offering will run from April 16 to 20 while listing has been set on April 27.

The principal shareholders of NatRe include the state pension fund Government Service Insurance System, the Ayalas’ BPI Group and the Yuchengco-owned Malayan Group.