LeapFrog Investments sells stake in Kenyan insurer Apollo to Swiss Re

  • LeapFrog Investments has agreed to sell its minority stake in Apollo Investments Limited, a leading East African insurance group, to Swiss Re.
  • LeapFrog is actively seeking further financial services companies in the region, with up to US$100m available to invest in East Africa.

Nairobi, Kenya - October 8, 2014 – LeapFrog Investments, the specialist investor in financial services in Africa and Asia, has sold its minority stake in Apollo Investments Limited to Swiss Re. Apollo, through its wholly owned insurance subsidiary, APA, is one of the top three regional insurers in East Africa, providing a broad array of insurance solutions across Kenya, Uganda and Tanzania.

The transaction follows LeapFrog's recent successful exit from Express Life in Ghana, which it sold to Prudential PLC, marking Prudential's entry into insurance in Africa.

LeapFrog partner Doug Lacey, who led both investments, said, “Our experience with both Apollo and Express has shown that investors with specialist skills and intimate knowledge of the market can add tremendous value to local businesses. The resulting growth and profitability benefits customers, management and shareholders, and contributes significantly to job creation.”

LeapFrog recently raised a new $400m fund for investing in financial services businesses in Africa and Asia. Up to $100m of the fund will be available for investment in East Africa, which is “an increasingly attractive investment destination,” said Lacey.

Apollo CEO, Ashok Shah, said “LeapFrog provided more than capital; the team helped us to scale our substantial health insurance offerings. They helped us to launch a number of products for underserved clients, including last needs and hospital cash insurance. These innovations will be crucial not just for Apollo, but for regional development.”

Said Lacey: “LeapFrog worked closely with Apollo management as true partners in building an enduring institution. We are delighted to have worked with Apollo CEO Ashok Shah and his team, and are confident they will enjoy continued success.”

LeapFrog also has investments in insurance underwriters and distributors in countries such as Ghana, Nigeria, South Africa and India. The group’s portfolio of companies currently reaches over 22 million people across 16 countries.

Says Dominic Liber, Partner and actuary at LeapFrog, “The underserved market for insurance, savings and payments is especially vast on our continent. We believe that the hundreds of millions of emerging consumers in Africa present a tremendous opportunity for financial services businesses. Visionary businesses that provide sustainable solutions to their customers, at scale, will transform many lives and deliver top-tier returns to investors.”

About LeapFrog Investments
LeapFrog Investments is a specialist investor in emerging markets financial services, seizing the growth opportunity presented by two billion emerging consumers in Africa and Asia. LeapFrog’s portfolio companies currently provide insurance, savings and pensions products in countries such as India, Indonesia, Sri Lanka, The Philippines, Ghana, Kenya, Nigeria and South Africa. A pioneer in Profit with Purpose investment, the LeapFrog team draws on decades of operational experience to identify and help build extraordinary companies that deliver top-tier financial and social returns. Today, LeapFrog's partner companies serve 22.7 million people across 16 countries. For more information please visit www.leapfroginvest.com or follow LeapFrog on Twitter @LeapFrogInvest.

About Apollo Investments Limited (AIL)
AIL is a top 3 regional insurer operating in East Africa, providing a broad array of insurance solutions across Kenya, Uganda and Tanzania. Its subsidiary, APA Insurance, is one of Kenya’s largest non-life insurers and provides access to Motor, Liability, Agriculture, Property and Health insurance. Its other primary business units include APA Life Assurance, one of Kenya’s leading life insurer; Apollo Asset Management, a fund and wealth manager; and Gordon Court.