Leapfrog buys majority stake in Kenyan insurer
Private equity firm LeapFrog Investments has acquired a majority stake in East African general insurer Resolution Insurance for KSh1.68 billion ($18.7 million).
The deal marks LeapFrog’s second investment from its second fund, which closed on its target and hardcap of $400 million in September, 12 months after holding a first close on $204 million.
In March the firm invested $29 million for an undisclosed stake in India’s IFMR Capital, a financial services business operating across 24 Indian states.
LeapFrog said it has earmarked up to $100 million from the fund for investment in East Africa.
The investment will be made through Resolution’s holding company, Resolution Health East
Africa, which has operations in Kenya and Tanzania and a partnership with IAA-Resolution in Uganda.
Investors in the fund include a number of the world’s largest insurers and re-insurers, including Swiss Re, PartnerRe, AIG, MetLife, Prudential Financial and AXA.
“East Africa is home to a 150 million strong population with insurance penetration rates below 4 percent, creating a vast opportunity to deliver financial inclusion at scale,” LeapFrog partner Dominic Liber said.
