Ksh 35B for insurance companies as LeapFrog enters market

Kenyan Insurance Companies are set to benefit from a partnership between Prudential Financial (PFI) and LeapFrog Investments companies which on Monday launched a Ksh 35 billion investment partnership to access high-growth markets in Africa.

According to Charles Lowrey, the Executive Vice President and Chief Operating Officer of PFI, the new investment vehicle seeks to target investments in life insurance companies in Kenya and other leading economies of Ghana and Nigeria, to be made over a tree-to-five year period.

“This investment expands PFI’s footprint into Africa, a continent that we believe offers tremendous potential for growth over the long term. We are delighted to partner with LeapFrog Investments, given their deep experience in Africa, and their impressive record of success as insurance investors focused on emerging consumers,” he said.

Doug Lacey, one of the partners at LeapFrog, said that the global insurance industry is looking for ways to close the protection gap for millions of people in emerging markets.

“This partnership will help address that need.  Kenya is a very exciting market. Insurance penetration, while relatively high by regional standards, is low compared to global norms. So the need and the opportunity are enormous,” he stressed.

PFI is an investor in LeapFrog’s most recent private equity fund, and is also a member of the LeapFrog Insurance Innovation Circle, a knowledge-sharing and innovation initiative that convenes many of the world’s leading insurers and re-insurers.