International Finance Corp., World Bank's private-sector arm, is investing $1.5 million for the expansion plans of local insurance firm Paramount Life and General Insurance Co.

IFC and Paramount on Wednesday signed the agreement for the initial quasi-investment in a holding company, which will be created by Paramount.

Peter Woicke, IFC executive vice president, said the investment would enable the company to "seize opportunities in the current global downturn in the industry to acquire Philippine operations of retreating international insurers and domestic companies."

"IFC will help Paramount expand and fortify its business operations and to allow it to finance strategic acquisitions," Woicke said.

Paramount is engaged in both life and nonlife insurance businesses. Its principal shareholders include the Go family and Chu family from Cebu, and the Tahija family from Indonesia.

Patrick L. Go, chief executive officer of Paramount, said the company has focused its business principally on personal accounts and on small-medium enterprises in the provincial areas.

Go said IFC's investment will support and strengthen Paramount's financial resources. Also, it will support the company's vision to be one of the top insurance firms over the next few years.

Paramount has a total net worth of P300 million with assets of more than P1 billion. The gross premiums written for its general business stands at P515 million placing it as the top 12 nonlife insurance firms in the country

Its life business is starting wit a total sum insured of more than P5 billion. Paramount has 22 branches nationwide.