Allnations finalises investment in Paraguay

As 2012 came to a close, Allnations, the capital support facility of ICMIF, announced its sixth investment in an ICMIF member organisation. Aseguradora Tajy Propiedad Cooperativa S.A. of Paraguay received USD 300,000 from the facility in an agreement which will see Allnations becoming a preferential share-holder in the insurer over a five year period.

As part of their application Aseguradora Tajy went through a rigorous due diligence process which included a feasibility study visit carried out by an actuarial consultant, whose services were provided by ICMIF member SOCODEVI. Many aspects of the company were put under close scrutiny as part of the investment application process and the Allnations Board of Directors was impressed by the directors and senior management of Aseguradora Tajy and pleased with their business plan and forecasts. The plan and forecasts were presented at the Allnations Annual Board Meeting by the Chairman Carlos Benitez and General Manager Carmen Barboza of Aseguradora Tajy.

Aseguradora Tajy celebrated its 15th Anniversary in 2012 having been established in 1997 by 14 cooperative members. The current total of cooperative members of Tajy has now increased to 33 members. In 2011 Aseguradora Tajy was ICMIF’s fastest growing member as highlighted in the ICMIF Member Key Statistics 2011 Report with some impressive statistics on their recent performance, including:

• 2010-2011 – premium growth +105.1%
• 2012 – premium growth +26.3%
• 2012 – Tajy were ranked the seventh largest insurer in Paraguay (previously ranked the 20th largest in 2008)

The company is well respected in the region and also has the financial backing of two other prominent ICMIF members, Grupo Asegurador La Segunda, Argentina, and Cooperativa de Seguros Múltiples de Puerto Rico, Puerto Rico; the former having worked with Aseguradora Tajy on the development of an agricultural insurance product.

Daniel Spessot, General Manager, Grupo Asegurador La Segunda, says: “The experience of working with a local insurer with cooperative origins like Aseguradora Tajy, which is committed to the values on which we are based, highly professional in the field, and recognised in the farming sector for its integrity, was another of the successes of this project, which has strengthened our organisations in both professional and institutional terms, affirming the possibility of alliances between cooperative organisations, which should be encouraged among other ICMIF member insurers”.

Roberto Castro Hiraldo, President, Cooperativa de Seguros Múltiples de Puerto Rico echoed the sentiments of Sr Spessot, saying: “Aseguradora Tajy of Paraguay is a very promising cooperative entrepreneurship model of insurance culture and social responsibility and has had a trajectory of continued development”.

Aseguradora Tajy is also one of the founding members of the Latin American Reinsurance Group (LARG) and currently occupies seventh place out of a total of 33 insurers in Paraguay and continues to increase its market share. Also, there are 700 cooperatives in Paraguay; 100 of which are involved with Aseguradora Tajy. The cooperative sector plays a significant part in the economy of Paraguay and there is a growing trust in cooperatives which is in no small part due to the professionalism of the Aseguradora Tajy team.

Speaking about the Allnations investment in Aseguradora Tajy, General Manager, Carmen Barboza, says: “The Allnations decision to invest in Aseguradora Tajy fills us with satisfaction. Cooperative integration is so important especially when the larger companies can help the smaller ones to support their growth and to encourage greater insurance penetration which is lacking in many parts of Latin America. Aseguradora Tajy is striving to promote insurance awareness throughout Paraguay and this investment will help us to achieve this”.

Allnations is a capital support facility created by ICMIF; the funds of which currently stand at USD 2 million. The fund is made up of contributions from ICMIF members and makes investments in emerging and developing economies. Previous investments have been made in Kenya, Uruguay, Ecuador, Ghana and Cameroon.