LeapFrog Buys Majority Stake in Kenya’s resolution coverage

LeapFrog Investments, the personal fairness company with a focal point on Africa and Asia, said it's going to pay 1.sixty eight billion shillings ($18.6 million) to advantage manipulate of Kenya’s resolution insurance and faucet growth in fitness coverage.

LeapFrog will make investments through decision health East Africa Ltd., the keeping employer for the Nairobi-primarily based insurer, the private fairness company said in an e-mailed assertion today, without disclosing the dimensions of its stake.

“Kenya’s non-life insurance marketplace is developing at 20 percent in line with annum, with health insurance main the rate at 38 percent. resolution is strongly positioned to capture much of this growth,” LeapFrog said.

resolution fitness East Africa entered Kenya in 2002 and its medical health insurance unit has operations in Tanzania and a partner in Uganda. LeapFrog sold a minority stake in Kenya’s Apollo Investments Ltd. to Swiss Re AG on Oct. 8, exiting an investment made with its first round of funding. The resolution buy comes from Fund II, which raised $400 million in August.

“East Africa is domestic to a a hundred and fifty million-sturdy population with insurance penetration prices below 4 percentage, developing a large opportunity to deliver financial inclusion at scale,” Dominic Liber, a LeapFrog companion, stated within the announcement.

the acquisition may additionally assist decision raise annual sales to 33 billion shillings [$336 million] via 2019 from 3 billion shillings [$33 million] now, leader govt Officer Peter Nduati informed reporters these days in the Kenyan capital, Nairobi.

“This investment will assist us do  matters; observe opportunity distribution and secondly it gives us the possibility to discover and dream,” he said.

The company will delay plans to begin trading its stocks on the Nairobi Securities exchange by way of 2016, Nduati stated. “it's far still in our strategic plan,” he stated.

LeapFrog has invested approximately $30 million in India’s IFMR Capital from Fund II and said it has as an awful lot as $one hundred million earmarked for East African investments.