MICROCAPITAL BRIEF: InsuResilience Investment Fund Acquires 40% Equity Stake in Ghana-based Insurance Company Vanguard

Switzerland’s BlueOrchard Impact Investment Advisors recently disbursed an undisclosed sum from the InsuResilience Invest Fund (IIF), a Luxembourg-domiciled public-private partnership, for IIF to buy 40 percent of the shares of Vanguard Assurance, an insurer in Ghana that provides microinsurance as well as traditional coverage. The deal, under which IIF controls multiple seats on Vanguard’s Board of Directors, is intended to grow Vanguard’s client base, including by boosting its “microinsurance distribution capabilities.” IIF’s technical assistance funding will support the deal with product development assistance and “raising market awareness for climate risk mitigation.”

Established in 1974, Vanguard offers individuals and companies insurance products via digital channels as well as 14 branches. Its services cover risks related to vehicles, accidents, travel, fire, property, employees and adverse weather events. Financial information on the firm is not publicly available.

Launched in 2015 and focused on developing countries, IIF is dedicated to increasing access for low-income households as well as micro-, small and medium-sized enterprises to financial services that increase their resilience to climate change. As of March 2022, IIF has financed 27 companies on four continents. The fund is managed by BlueOrchard, a member of the UK-based Schroders Group.

Since its inception in 2001 through 2021, BlueOrchard has invested in 637 institutions in 93 countries, insuring 26 million clients against climate risks and financing 39 million clients – mostly in local currency. Of those funded, 80 percent were women, two thirds live in rural areas and 130,000 were students and educational institutions. The total amount disbursed included USD 8 billion in private debt.

Schroders is an investment firm “channelling capital into sustainable and durable businesses” with the goal of effecting “positive change in the world.” As of June 2021, the group reports USD 820 billion in assets under management.

By Adhya Singh, Research Associate

Sources and Additional Resources

BlueOrchard press release
https://www.blueorchard.com/blueorchard-managed-insuresilience-investment-fund-invests-in-major-ghanaian-insurer/

Vanguard homepage
https://vanguardassurance.com/

IIF homepage
https://www.insuresilienceinvestment.fund/

IIF annual reports
https://annualreport.insuresilience.org/

BlueOrchard homepage
https://www.blueorchard.com/

BlueOrchard Impact Data
https://blueorchard.com/impactreport/

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