LeapFrog Investments and Resolution Insurance announced today, that LeapFrog intends to invest $18.7 million for a majority stake in Resolution Insurance,through its holding company, Resolution Health East Africa Limited.
The specialist investor seeks to push Resolution’s broader growth strategy, thereby facilitating the delivery of diversified insurance to emerging consumers and businesses in East Africa.
The deal, which is undergoing final regulatory process, marks the company’s second investment in Kenya. It is therefore a reflection of its long standing commitment to East Africa, a region it views as an attractive investment destination.
The Kenyan non-life insurance market is growing rapidly at 20 percent per annum, with a strong health insurance sector expanding at 38 percent annually. This move therefore presents LeapFrog with a major opportunity to extend access to health and diversified insurance to millions of consumers across East Africa.
“Resolution is a strong and growing business, with an exceptional management team. In a short time, Resolution has grown to become Kenya’s fourth largest health insurer and positioned itself as a rising star in East Africa’s fast-expanding health insurance space. Our investment positions Resolution to take the next leap in its growth, and we look forward to working with them to expand their reach in health insurance and beyond,” LeapFrog said in an official statement sent to Ventures Africa.
Peter Nduati, CEO of Resolution, believes that this investment is a stepping stone towards improved health insurance services. “We are excited to partner with LeapFrog for our next stage of growth. We believe that LeapFrog’s dedicated operational investing approach, strong track record in health insurance, and emerging consumer expertise will add tremendous value. Importantly, LeapFrog shares our entrepreneurial ethos and commitment to financial inclusion”.
LeapFrog recently raised $400 million which it says will go into investments in financial services across Africa and Asia. A quarter of this fund has been reserved for investments in East Africa.