LeapFrog Investments, an international for-profit microinsurance fund, recently announced its final close raising USD 25 million for a total fund size of USD 137 million for investments in Africa and Asia. The fund announced new investors including J.P. Morgan, a global investment bank, with an investment of USD 10 million; TIAA-CREF, a US-based pension fund, with an investment of USD 7 million; and Preparco, a subsidiary of the French Development Agency specializing in capital investment, loans and guarantees, with an undisclosed size of investment.
According to a press release from LeapFrog Investments, the companies that the fund will invest in will be those that offer “affordable products including health and life insurance as well as low-income housing and weather index insurance”. The fund intends to “invest in and alongside insurers as well as large distributors, such as microfinance institutions, retail chains, religious groups and mobile phone networks”. LeapFrog Investment intends to invest USD 5 million to USD 15 million in each portfolio company.
Commenting on his company’s investment in LeapFrog Investments, the Managing Director of Social Finance at J.P. Morgan, John Buley Jr, said, “we believe that microinsurance is a key innovation that will further the development of business in the social sector, and represents a massive opportunity to meet the inclusive financial services needs of low-income people in developing countries.” The Managing Director of Global Social and Community Investments at TIAA-CREF, Scott Budde, added, “from an impact perspective, we see microinsurance as a valuable complement to other socially responsible financial services for low income clients, while also providing competitive returns to investors.”
By: Christine Chang, 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. As of May 2010, LeapFrog had 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, Calvert, the International Finance Corporation (IFC), German development organization KfW Bankengruppe, Flagstone Reinsurance and the Soros Economic Development Fund. The LeapFrog team has 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 Agence Francaise de Developpement (AFD):
Established in 1941, Agence Francaise de Developpement (AFD) is a bi-lateral development finance institution working on the behalf of the French Government. Its public mandate is to finance development according to France’s Overseas Development Assistance policies. In 2007, AFD committed over EUR 3.5 billion to more than 60 developing countries.
Additional Resources:
PR Newswire: World’s First Microinsurance Fund Announces Major New Investors J.P. Morgan, TIAA-CREF, Proparco, Waterloo, ACE – LeapFrog Fund Achieves Record Close of $137 million, May 6, 2010: http://www.prnewswire.com/news-releases/worlds-first-microinsurance-fund-announces-major-new-investors-jp-morgan-tiaa-cref-proparco-waterloo-ace—leapfrog-fund-achieves-record-close-of-137-million-92973529.html
MICROCAPITAL BRIEF: LeapFrog Investments Poised to Invest $30m to $37m in Microinsurance Projects in India, April 29, 2010: https://www.microcapital.org/microcapital-brief-leapfrog-investments-poised-to-invest-30m-to-37m-in-microinsurance-projects-in-india/
MICROCAPITAL BRIEF: LeapFrog Investments Microinsurance Fund Raises Additional $65m in Commitments from International Finance Corporation (IFC), KfW, Flagstone Reinsurance, and Soros Economic Development Fund, March 30, 2010: https://www.microcapital.org/microcapital-brief-leapfrog-investments-microinsurance-fund-raises-additional-65m-in-commitments-from-international-finance-corporation-ifc-kfw-flagstone-reinsurance-and-soros-economic-developm/
MEET THE BOSS: Interview with Andrew Kuper, President and Founder of LeapFrog Investments Ltd., November 13, 2009: https://www.microcapital.org/meet-the-boss-interview-with-andrew-kuper-president-and-founder-of-leapfrog-investments-ltd/
MicroCapital Universe: LeapFrog Investments: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=LeapFrog+Investments
MicroCapital Universe: Agence Francaise de Developpement (AFD): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Agence+Francaise+de+Developpement+%28AFD%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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