MAA General Assurance Phils Incl

Equity : November 2023

BIO has invested USD 10 M in MAA General Assurance Phils Inc, a non-life insurance company in the Philippines.

Amount

$ 10,000,000.00

Type of investment

Equity

Development impacts

  • Private sector consolidation/innovation
  • Financial inclusion
  • Promotion of ESG best practices

Beneficiary locations

Asia: Philippines

Investment field

Financial Institutions

Activity

K65.12 Non-life insurance

Organisation

MAA General Assurance Phils Incl

Domicile

Philipines

MAA General Assurance Phils Inc. (MAA) is an independent, multichannel non-life insurance company. It is currently the 12th largest non-life insurer in the country.

MAA serves all market segments to cover both retail and companies ranging from micro to corporates. Currently, MAA estimates its micro and SMEs segment to cover around 60% of the gross written premium, while approximately 40% of the portfolio is directed towards corporates.

Development impacts

  • Private sector consolidation/innovation

    Developing and implementing a strategic and impact creation plan to lead the sectors’ further growth and consolidation, mostly through enhancing MAA’s governance, institutionalization and developing product offering and distribution (digital) channels to increase its outreach to un(der)served SMEs and individuals.

  • Financial inclusion

    Increasing access to insurance products for both microenterprises and individuals – expected to double over the investment period from 6M insurance policies written per annum to 12M, mostly through a unique and exclusive distribution agreement with a network of ~3000 pawnshops.

  • Promotion of ESG best practices

    Strengthen ESG practices a direct result of BIO's involvement in setting up the Governance framework and through its Board seat, as well as performing a rigorous E&S gap assessment (and related ESAP) as part of BIO's requirements.

E&S Impact

The investors agreed to include E&S action into the value creation plan for MAA. This includes recruiting an E&S function within the organization and appointing a consultant to design an Environmental and Social Management System aligned to the UNEP Financial Institutions Principles for Sustainable Insurance and to the EBRD Standards for Insurance companies. The company will also work to improve its HR policies to align them to the requirements of the IFC PS 2.

Situation at the time of investment

At the time of the due diligence, MAA does not have any policy, procedure or allocation of responsibility when it comes to E&S topics. The portfolio of clients is mainly composed by micro clients (60%) but MAA also offers higher-risk insurance products to SMEs and corporates active in different sectors.

Risk Category: B

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