ING Russia Life

completed

The project consists of an equity investment of up to approximately EUR 22.2 million ($ 28.5 million equivalent) for a 10% stake in ING Life Insurance ZAO, a life insurance company to be newly established in Russia by the ING Group.EBRD will also hold a 10% equity stake with ING holding the remaining 80%. The company is expected to require equity financing of EUR 222 million over a 10 year period to support its business plan. The life insurance market in Russia is in a nascent stage of development, both in terms of size and sophistication of the industry. Reported life insurance premiums are small relative to population size but the true life insurance market is even smaller due to the inclusion of a high volume of artificial tax motivated arrangements within the official statistics. The proposed project is expected to have a strong development impact by promoting the value of life assurance and the growth of the industry through a highly respected international player which will operate to high standards. IFC has a strong role in this project in supporting the entry of a global insurance major such as ING into an underdeveloped and challenging market. IFC’s support will serve as a signal of its confidence in the long term prospects of this market.