MICROCAPITAL BRIEF: Prudential Purchases Controlling Stake in Ghana’s Express Life Insurance From LeapFrog Investments

UK-based life insurance firm Prudential plc has purchased a majority stake in Ghanaian microinsurance provider Express Life Insurance Company from LeapFrog Investments, a private equity fund based in Mauritius. Prudential has not disclosed the price it paid. This deal allows LeapFrog, which invested USD 5.5 million in Express Life in 2012, to exit its stake in Express Life.

Accra-based Express Life provides life insurance products to low-income individuals in Ghana. It has approximately 16,000 policies outstanding with about 90 percent of its customers living on less than USD 10 per day [1]. LeapFrog Investments focuses on ventures in Africa and Asia and reports a total fund size of USD 135 million as of 2012. Prudential plc is a London-based multinational that was founded in 1848 and provides insurance and other financial services to 23 million customers in the UK, US, Asia and South Africa. As of August 2013, Prudential has GBP 427 billion (USD 662 billion) in assets [2].

By Meraj Husain, Research Associate

About LeapFrog Investments

LeapFrog Investments, which was founded in 2007 by Dr. Andrew Kuper and Dr. Jim Roth, is a for-profit private equity fund aimed at earning large returns by investing in and otherwise supporting microinsurance initiatives. LeapFrog’s investors include the European Investment Bank, the Omidyar Network, Netherlands Development Finance Company (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 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 reported a total fund size of USD 135 million.

About Express Life Insurance Company

Express Life Insurance Company is a Ghana-based insurance company that was founded by Obed Danquah in 2007 and aims to provide life insurance to low-income individuals in Ghana. The company primarily offers hybrid savings and risk products to individuals employed by public-sector institutions. The firm is majority held by UK-based insurer Prudential. It has approximately 16,000 policies outstanding with about 90 percent of its customers living on less than USD 10 per day. Further financial information on Express Life Insurance is not available.

About Prudential plc

Prudential plc is a London-based multinational that was founded in 1848. It provides insurance and other financial services to 23 million customers in the UK, US, Asia and South Africa. As of August 2013, Prudential has GBP 427 billion (USD 662 billion) in assets. Its four main business units are: Prudential Corporation Asia, US-based Jackson National Life Insurance Company, Prudential UK, and European asset fund M&G.

Sources and Additional Resources

[1] Financial Times: “Prudential moves into insurance in Ghana,” http://www.ft.com/intl/cms/s/0/4b1536b8-5daa-11e3-b3e8-00144feabdc0.html?siteedition=intl#axzz2mzHrhreL

[2] Prudential plc: “Fact File update,” http://www.prudential.co.uk/~/media/Files/P/Prudential-Corp/content-pdf/2013-factfile-hy-v2.PDF

MicroCapital Story, May 30, 2012, “MICROCAPITAL BRIEF: LeapFrog Acquires Majority Stake in Ghana’s Express Life Insurance for $5.5m,” https://www.microcapital.org/microcapital-brief-leapfrog-acquires-majority-stake-in-ghanas-express-life-insurance-for-5-5m/

MicroCapital Story, September 17, 2013, “MICROCAPITAL BRIEF: LeapFrog Raises $204m for Second Fund; to Invest in Microinsurance, Other Financial Services for Poor People in Africa, Asia,” https://www.microcapital.org/microcapital-brief-leapfrog-raises-204m-for-second-fund-to-invest-in-microinsurance-other-financial-services-for-poor-people-in-africa-asia/

MicroCapital Universe Profile: LeapFrog Investments, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=LeapFrog+Investments

MicroCapital Universe Profile: Express Life Insurance, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Express+Life+Insurance

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