Societé Generale Group’s Bank Republic and Insurance Company Imedi L International sealed a deal last week on a strategic partnership which allows the bank to provide various types of insurance to all of its customers.

In particular, all loans disbursed by the bank will include a life insurance policy for the borrower in the case of a collateral-free loan and a life insurance policy for the borrower and the purchase target in the case of a collateral loan.

According to Gilbert Hie, Director General of Bank Republic, the principal objective of the agreement is to protect the Bank’s clients.

“This is a very significant agreement after the hostilities that took place in the country; it will cover the Bank’s retail as well as corporate clients. As a result of this agreement, the borrowers of Bank Republic will be insured against any risk, even if the solvency of a borrower is under question,” Gilbert Hie said.

“We have been cooperating with the Insurance Company Imedi L for over three years. This year we have made a decision to evolve to a new stage of partnership and concluded the agreement on strategic partnership,” Armen Matevosyan, Advisor to the Bank Republic Board of Directors, added.

According to the advisor, the Bank is interested in assisting clients so they will not have trouble in repaying a loan.

“Our principal goal is to issue loans and for our clients to be successful and happy from collaboration with us. Since we are aimed at the recovery of problem loans and not the seizure of the collateral,” Armen Matevosyan says.

JS International Insurance Company Imedi L International was established in1995. In 2005 company received Moody International Certification to certify that the quality management system of Imedi L International has been assessed and registered against the following quality assurance standard ISO 9001. Since 2007 EBRD - European Bank of Reconstruction and Development became one of the main the shareholders of “Imedi L International” and owns 34% of company shares.

Aleksandre Lortkipanidze, Director of Imedi L says that Imedi L cooperated with Bank Republic for several years, but the new agreement on a strategic partnership, signed on November 12, is very important.

“According to the agreement we are ready to insure any product of the clients of the Societé Generale Group member -- Bank Republic per high European standards. Additionally, we will sell the Bank’s products through our network; the Bank’s representatives will do the same on their end,” Aleksandre Lortkipanidze, Director of the Insurance Company Imedi L, said.

Societé Generale Group and the European Bank for Reconstruction and Development are also supporting the new strategic partnership agreement between the insurance company and the bank.

The combination of credit activity and banking insurance is widely used in Europe and in  the US and this new initiative will enable Bank Republic to improve its services for its customers.