Private equity firm LeapFrog Investments has agreed to acquire a majority stake in Kenya-based Resolution Insurance, for around KSh1.68bn ($19m).
LeapFrog will make the investment through Resolution Insurance’s holding company, Resolution Health East Africa, which carries out operations in Kenya and Tanzania and in partnership with IAA-Resolution in Uganda.
Resolution Insurance CEO Peter Nduati said: "We believe that LeapFrog’s dedicated operational investing approach, strong track record in health insurance, and emerging consumer expertise will add tremendous value. Importantly, LeapFrog shares our entrepreneurial ethos and commitment to financial inclusion."
Resolution Health East Africa has commenced its operations in the Kenyan market in 2002. It is said to be the first firm to be registered as a Medical Insurance Provider (MIP) under the new Insurance Act in the country.
Resolution Insurance Kenya has licensed to provide personal accident, workmen’s compensation, liability, medical and miscellaneous classes of general insurance business.
LeapFrog partner Dominic Liber said: "East Africa is home to a 150 million strong population with insurance penetration rates below 4%, creating a vast opportunity to deliver financial inclusion at scale.
"Investing in businesses like Resolution enable us to continue contributing to the development of enduring institutions that serve the people of East Africa."
The deal is the second one for LeapFrog in Kenya. It announced the divestment of its stake in Apollo Investments to Swiss Re in October.
LeapFrog also holds investments in insurance underwriters and distributors in countries such as Ghana, Nigeria, South Africa and India.
Image: LeapFrog to invest in Resolution Health East Africa. Photo: courtesy of Stuart Miles/ FreeDigitalPhotos.net.