LeapFrog Investments has announced a R93 million investment in Apollo Investment Ltd, a leading regional insurer operating in Kenya, Uganda, and Tanzania.
LeapFrog was launched only a few years ago by young South African entrepreneurs with the support of President Bill Clinton. With R900 million committed, it is now the world’s largest investment fund focused on insurance to under-served people and markets.
Doug Lacey, the LeapFrog partner who led the investment in Apollo, said: “We are pleased to be investing in an insurer with multiple strong business lines, longstanding leadership in its region, and a commercial focus on the untapped market of millions of lower-income clients.”
Ashok Shah, who is continuing as CEO, said: “LeapFrog’s capital injection and global insurance expertise will help Apollo to become the preeminent regional player in insurance in East Africa – including in microinsurance. We are taking the next leap.” Shah is the recent winner of the Lifetime Achievement Award for his contribution to the Kenyan insurance industry.
LeapFrog has a strong connection with South Africa. Its inaugural investment was in AllLife, the innovative insurer of South Africans living with HIV. Since announcing the R50 million investment by LeapFrog a year ago, AllLife has doubled in size and opened a second call centre in Durban.
LeapFrog’s Johannesburg office is led by Gary Herbert, former MD of Alexander Forbes, Doug Lacey, former Divisional CEO of African Life, and Dominic Liber, who co-founded actuarial firm Quindiem. LeapFrog’s Founder Dr. Andrew Kuper and Co-Founder Dr. Jim Roth are also South Africans.
LeapFrog and Apollo share a focus on tapping the vast unreached insurance market in Africa, emphasizing microinsurance as a key business focus. Beyond its current activities, Apollo is targeting the potential market of 7.9 million people who are self-employed in the informal sector.
Daniel Ndonye, the Apollo Board Chair said: “With its extensive capital and unrivalled expertise in microinsurance, LeapFrog is the ideal value-add investor in African insurance companies looking to expand rapidly in new markets.”
Source – Business Live