MICROCAPITAL BRIEF: French Insurer AXA Ups Commitment to Microinsurance, Increasing Equity Stake in UK’s MicroEnsure to 46%

MicroEnsure, a UK-based, for-profit microinsurance company founded by US-based NGO Opportunity International, recently announced that AXA Group, a French insurance and asset management company, will pay an undisclosed sum to increase its equity stake in the organization to 46 percent from an unspecified level. MicroEnsure will use the newly raised money to provide microinsurance to new clients and improve the level of protection provided to 3 million existing clients of “tomorrow’s emerging middle class” in Africa, Asia and Latin America [1]. The services offered will encompass life and savings, health, property and casualty insurance products.

MicroEnsure CEO Richard Leftley, said “we are really excited by this relationship as it will allow both us alongside AXA and our other investors to build on the fantastic progress we have already made in developing innovative, affordable solutions that reach the populations traditionally unreachable and protectable by insurance” [1].

AXA has assets totaling approximately EUR 2 trillion (USD 2.4 trillion) as of December 31, 2014. As of 2016, MicroEnsure provides products including health, life, property and weather-index insurance to approximately 15 million clients in 17 countries throughout Africa and Asia.

By Meredith Steih, Research Associate

About AXA Group

AXA Group offers life, property and casualty insurance. Based in Paris, France, AXA relies on approximately 161,000 employees to service approximately 103 million clients in 59 countries. AXA has assets of approximately EUR 2 trillion (USD 2.4 trillion) as of December 31, 2014.

About MicroEnsure

Formerly known as Micro Insurance Agency, MicroEnsure was founded in the UK in 2002 as a subsidiary of US-based nonprofit microfinance network Opportunity International. In 2013, the organization converted to for-profit status, at which time time it was owned by members of its management team as well as US-based NGO Omidyar Network and the World Bank Group’s International Finance Corporation (IFC). As of 2016, MicroEnsure provides products including health, life, property and weather-index insurance to approximately 15 million clients in 17 countries throughout Africa and Asia and Latin America.

Sources and Additional Resources
[1] MicroEnsure Press Release, “AXA launches a global initiative to scale up its protection of tomorrow’s emerging middle class.” 

MicroCapital Universe Profile: AXA Group

MicroCapital Universe Profile: MicroEnsure

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