WASHINGTON, D.C. – Today, the Clinton Bush Haiti Fund, Sarona Asset Management and the Mennonite Economic Development Associates (MEDA) joined the Inter-American Development Bank (IDB) in making investments in the Alternative Insurance Company (AIC). The Clinton Bush Haiti Fund and Sarona/MEDA are each investing $1 million in equity in the Haitian multiline insurance company.
AIC has products fit to cover a range of customers, from commercial enterprises to low-income individuals. The investments, alongside a $2 million subordinated loan from the IDB that was announced in April 2012, will provide AIC with capital to strengthen its portfolio of insurance products and better prepare the Haitian population for unforeseen circumstances.
“A robust insurance sector is an important precondition to sustainable reconstruction and mitigation of future risk in Haiti, a disaster-prone country,” Clinton Bush Haiti Fund CEO Gary Edson said. “Insurance access improves initial disaster response, gets individuals and businesses back on their feet faster, and reassures investors about the security of their investments. By strengthening AIC’s capital base, we are helping AIC offer this and, in turn, act as a beacon for what insurance in Haiti can be.”
The Clinton Bush Haiti Fund’s investment was catalytic in bringing other partners to the project, including the IDB. The IDB’s loan marks the organization’s first-ever partnership with a private sector company.
“We are encouraged that more Haitians are discovering insurance as an instrument of well-being,” AIC´s CEO Olivier Barrau said. “Most importantly, we are all learning that a prevention culture makes us stronger in an environment highly exposed to risk. The Clinton Bush Haiti Fund and Sarona/MEDA partnerships will help us fulfill our promise of protection to those who most need it,” said Barrau.
While 2010 was critically challenging for Haiti’s insurance industry, AIC honored all of its claims after the January 12th earthquake. For the last two years the company has focused on growing its business and creating innovative new offerings. The Clinton Bush Haiti Fund and Sarona/MEDA investments will help promote this growth.
AIC products range from commercial, auto, life, and health insurance to lower-cost insurance products, known as micro-insurance, targeted toward middle- and low-income clients. One micro-insurance product is AIC’s funeral insurance, Protecta, which provides families with a safety net, preventing the shock of a death in the family from driving Haitians deeper into poverty. An AIC survey shows that a funeral costs on average 11 times the monthly income of a low-income family. Without insurance, families must cover this expense by borrowing money or selling the few assets they have.
These partnerships aim to assist AIC in the development of their micro-insurance products and mobile payment solutions. “We are pleased to partner with AIC for the betterment of the poor in Haiti,” said Julie Redfern, Vice President of Financial Services at MEDA. Sarona Asset Management is the investment arm of MEDA. “Philosophically, we are well-aligned with shared values, solid business experience and a commitment to bottom-of-the-pyramid clientele.”
Sarona Asset Management’s COO, Serge LeVert-Chiasson, explained that its decision to support the investment made by MEDA in AIC was driven by the quality of its senior management team, its leadership position within the insurance industry in the country and its focus on developing micro-insurance products for the working poor in Haiti.
