LeapFrog Invests $14M in Insurer Apollo
Friday, April 15, 2011
NAIROBI, Kenya, April 14, 2011 /PRNewswire/ — LeapFrog Investments has announced a landmark investment of $14 millioninto East African insurance group Apollo Investment Ltd, the largest deal in the history of microinsurance in Africa. Launched with President Bill Clinton at the Clinton Global Initiative in 2008, LeapFrog’s $135 million fund invests in companies providing insurance to under-served people in emerging markets. In Africa, LeapFrog now gains exposure to Kenya, Tanzania, andUganda in addition to its investment in South Africa.
“Some of the greatest opportunities for business growth, profitability, and impact are found in Africa – whose people so often prove the critics wrong,” said Dr. Andrew Kuper, Founder and President of LeapFrog. “By investing in Apollo, a fast-growing and multi-line insurance group, we expect to achieve robust returns and to reshape the market – helping bring safety nets to millions of low-income and vulnerable people. It epitomises our profit-with-purpose approach to investing.”
Ashok Shah, who is continuing as Apollo CEO, said, “LeapFrog’s capital and global insurance expertise will help Apollo to become the preeminent regional player in insurance in East Africa – including in microinsurance. We are taking the next leap.” Beyond its current life, health, and property insurance activities, Apollo is now targeting a market of 7.9 million self-employed people in the informal sector. Mr. Shah is the recent winner of the Lifetime Achievement Award for his contribution to the Kenyan insurance industry.
LeapFrog, a pioneer impact investor in Africa and Asia, previously invested in AllLife, the innovative South African insurer that covers people living with HIV. By linking clients with a health management program, AllLife helps people lead long and productive lives, which also makes it commercially worthwhile to insure them. Since LeapFrog’s investment a year ago, AllLife has doubled in size.
