MICROCAPITAL BRIEF: Prudential Financial to Invest $350m in African Insurers, To Be Managed by LeapFrog

Prudential Financial Incorporated, a US-based financial services company, recently announced an investment of USD 350 million in life insurance companies in African countries such as Ghana, Kenya and Nigeria. The investment will be managed by LeapFrog Investments, a Mauritius-based private equity fund that invests in companies that serve people in Africa and Asia who earn low incomes [1].

Charles Lowrey, the executive vice president and chief operating officer of Prudential’s international businesses, said, “The investment expands Prudential’s footprint into Africa, a continent that we believe offers tremendous potential for growth over the long term [1].”

Dr. Andrew Kuper, the founder and CEO of LeapFrog Investments, said, “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, while tapping some of the world’s highest growth markets. […] By enabling LeapFrog to pursue larger and more established assets than via our private equity funds, this partnership also diversifies our capabilities as an alternative investment group [1].”

As of 2015, Prudential Financial reported total assets of approximately USD 1 trillion and annual after-tax adjusted operating income of USD 4.6 billion [2]. As of January 2016, LeapFrog Investments reported approximately USD 1 billion in investor commitments.

By Kevin van den Brink, Research Associate

About Prudential Financial Incorporated

Founded in 1875 in the US city of Newark, New Jersey, Prudential Financial Incorporated is a holding company whose subsidiaries provide insurance, investment management, and other financial products and services to both retail and institutional customers in 31 countries. As of 2015, Prudential Financial reported total assets of approximately USD 1 trillion and annual after-tax adjusted operating income of USD 4.6 billion.

About LeapFrog Investments

LeapFrog Investments, which was founded in 2007 and is based in Mauritius, invests in businesses in Africa and Asia that serve “emerging consumers, often accessing insurance, savings, pensions or credit for the first time.” Its investees serve 51 million people in 21 markets. It has garnered approximately USD 1 billion in investor commitments as of March 2016.

Sources and Additional Resources

[1] LeapFrog Investments, News, “Prudential Financial and LeapFrog launch partnership in Africa

[2] Prudential Financial, Investor Relations, News Release, “Prudential Financial, Inc. Announces 2015 Results

MicroCapital Universe Profile: Prudential Financial Incorporated

MicroCapital Universe Profile: LeapFrog Investments

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