Leapfrog Investments, a private equity fund that supports microinsurance initiatives, recently made a USD 13.5 million equity investment in Apollo Investments Limited, an insurance company that operates in Kenya, Uganda and Tanzania, to improve access to microinsurance for low-income individuals. LeapFrog and Apollo share the goal of leveraging their expertise in insurance to gain a share of Africa’s largely untapped microinsurance market. According to Lloyd’s, a global insurance company based in the United Kingdom, most markets in the developing world are untapped by insurers, with approximately 1.5 to 3 billion people willing to buy insurance, but lacking access to it.
Ashok Shah, Chief Executive of Apollo, acknowledged the potential gains from expanding business in the microinsurance market saying, “Investments in microinsurance have diverse returns that evolve over time: reputational gains in the short term, knowledge and innovation in the medium term, and strong growth and profitability in the long term. If we view insurance as a sector in which knowledge and innovation are decisive resources, then microinsurance can be viewed as a key driver of company success and economic growth.” As of 2009, Apollo Investments reported gross written premiums of KES 3.8 billion (USD 45 million) and total assets of KES 7.7 billion (USD 91.6 billion).
By Julie Moksim, Research Associate
About LeapFrog Investments: LeapFrog Investments was founded in 2007 by Dr Andrew Kuper. It is a for-profit, private equity fund aimed at earning large returns by investing in and supporting microinsurance initiatives. LeapFrog has raised USD 137 million from a range of public and private investors, including the European Investment Bank, the Omidyar Network, Dutch development bank FMO, ACCION International and Calvert. LeapFrog team members have also committed USD 1 million of their personal money to the fund. The fund focuses on ventures in Africa and Asia, with initial target countries including South Africa, Kenya, Ghana, India, Indonesia, Pakistan and the Philippines.
About Apollo Investments Limited: Apollo Investments Limited is an organization that is made up of APA Insurance Limited, a Kenyan general insurance company jointly owned by Reliance Insurance Company Limited of Tanzania and APA Insurance Limited of Uganda; Apollo Life Assurance Limited, a long-term insurance business based in Kenya; Apollo Asset Management Company, a Kenyan fund manager; and Gordon Court Limited, a Kenyan property development company. As of 2009, Apollo Investments reported gross written premiums of KES 3.8 billion (USD 45 million) and total assets of KES 7.7 billion (USD 91.6 billion).
Sources and Additional Resources:
Business Live: “LeapFrog Invests R93m in Apollo”, April 14, 2011, http://www.businesslive.co.za/southafrica/sa_companies/2011/04/14/leapfrog-invests-r93m-in-apollo
Apollo Life Assurance Limited Press Release: “Apollo and LeapFrog Announce a Ksh 1.15 Billion Strategic Partnership in Insurance”, April 14, 2011, http://www.apollo.co.ke/news/story.php?id=11
MicroCapital.org Brief, April 29, 2011: LeapFrog Investments Poised to Invest $30m to $37m in Microinsurance Projects in India, https://www.microcapital.org/microcapital-brief-leapfrog-investments-poised-to-invest-30m-to-37m-in-microinsurance-projects-in-india/
Meet The Boss: Interview with Andrew Kuper, President and Founder of LeapFrog Investments Limited, https://www.microcapital.org/meet-the-boss-interview-with-andrew-kuper-president-and-founder-of-leapfrog-investments-ltd/
MicroCapital’s Microfinance Universe Profile: LeapFrog Investments
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=LeapFrog+Investments
MicroCapital’s Microfinance Universe Profile: Apollo Investments Limited
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Apollo+Investments+Limited
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