LeapFrog Investments, a Mauritius-based investor in insurance providers operating in emerging markets, recently announced plans to invest USD 4.3 million to take a stake of undisclosed size in Bima, a Sweden-based mobile microinsurance provider that operates in emerging markets in Africa and Asia. Investment AB Kinnevik, a Sweden-based holding company and the majority owner of Bima, also increased its current investment by USD 2.8 million. Bima reportedly has 4 million customers and is gaining approximately 400,000 new subscribers each month.
Bima products include life insurance, accident insurance and hospitalization insurance, with costs ranging from USD 0.20 to USD 6 dollars per month. Under the Bima model, coverage is attached to mobile phone expenditures – as spending increases, coverage increases, which can benefit mobile operators by increasing customer loyalty. Andrew Kuper, president of LeapFrog, reportedly said, “When airtime adds to their insurance, customers turn from price-conscious pay-and-go customers to loyal subscribers. The mobile operator gets something they really need.”
As of March 31, 2013, Bima had total assets of SEK 49 million (USD 7.5 million). Kinnevik reported total assets of SEK 52 billion (USD 8 billion) as of the same date. As of 2012, LeapFrog Investments reports total assets of USD 135 million. Leapfrog investments covered approximately 8.7 million people in six countries as of May 2013.
By Nicole Boyd, Research Associate
About Bima
Bima is a Sweden-based mobile microinsurance provider that operates in emerging markets in Africa and Asia. Bima products include life insurance, accident insurance and hospitalization insurance, with costs ranging from USD 0.20 to USD 6 dollars a month. The amount of coverage varies depending on the consumer’s mobile phone spending. Founded in 2011, Bima is majority-held by Sweden-based holding company Kinnevik. As of March 31, 2013, Bima had total assets of SEK 49 million (USD 7.5 million).
About Investment AB Kinnevik
Investment AB Kinnevik is a Sweden-based holding company and asset manager. Kinnevik focuses its investments in telecom and financial services, online services, media and industrial sectors, primarily in growth companies operating in emerging markets. As of March 31, 2013, Kinnevik reported total assets of SEK 52 billion (USD 8 billion).
About LeapFrog
LeapFrog Investments, which was founded in 2007 by Dr. Andrew Kuper, is a for-profit private equity fund aimed at earning large returns by investing in and supporting microinsurance initiatives. LeapFrog’s investors include the European Investment Bank, the Omidyar Network, Dutch development bank FMO, Accion, Calvert Foundation, the International Finance Corporation (IFC), German development organization KfW Bankengruppe, Flagstone Reinsurance and the Soros Economic Development Fund. LeapFrog team members have also committed USD 1 million of their personal money to the fund. Based in Mauritius, the fund focuses on microinsurance ventures in Africa and Asia, with initial target countries including South Africa, Kenya, Ghana, India, Indonesia, Pakistan and the Philippines. As of 2012, LeapFrog Investments reports total assets of USD 135 million. Leapfrog investments covered approximately 8.7 million people in six countries as of May 2013.
Sources and Additional Resources:
Financial Times. “After mobile banking, mobile insurance,” http://www.leapfroginvest.com/lf/wp-content/uploads/2013/02/FT-BeyondBrics-LeapFrog-article.pdf
MicroCapital. April 22, 2013, “MICROCAPITAL BRIEF: Younger People in Kenya More Open to “Game Changer” of Buying Investment, Insurance Products by Mobile Phone,” https://www.microcapital.org/microcapital-brief-younger-people-in-kenya-more-open-to-game-changer-of-buying-investment-insurance-products-by-mobile-phone/
MicroCaptial. October 8, 2012, “MICROCAPITAL BRIEF: LeapFrog Takes 15% Stake in Mahindra Insurance Brokers for $15m in Effort to Boost Impact in Rural India,” https://www.microcapital.org/microcapital-brief-leapfrog-takes-15-stake-in-mahindra-insurance-brokers-for-15m-in-effort-to-boost-impact-in-rural-india-4/
MicroCapital. July 16, 2009, “MICROCAPITAL STORY: Kinnevik Invests $10m in Microfinance Equity Fund MicroVest II,” https://www.microcapital.org/microcapital-story-kinnevik-invests-10m-in-microfinance-equity-fund-microvest-ii/
MicroCapital Universe Profile: LeapFrog?https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=LeapFrog+Investments
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