VENTURES AFRICA- UK’s biggest insurer by market value, Prudential Plc (PRU) has acquired LeapFrog Investments’ majority stake in leading Ghanaian insurer Express Life for an undisclosed sum.
Prudential’s acquisition of the Ghanaian insurer marks its entry into the fast-growing African life insurance market and into an emerging consumer market pioneered by LeapFrog Investments, a specialist investor in insurance underwriters and financial services in Africa and Asia.
It also bought out a smaller investor, giving the company full ownership.
When LeapFrog invested in Express Life in 2012, it was the largest FDI in Ghana’s insurance industry, which has about 60,000 insurers. Today, the company reaches over 730,000 people, most of them first-time users of insurance and savings products.
“From the start, LeapFrog provided us with strategic support and operational know-how,” Express Life CEO, Mokobi Aryee said.
“As a hands-on investor, they helped us lay the platform for a promising future. Now, as part of Prudential we can achieve our common vision: to lead the insurance industry in Ghana, in service delivery and in meeting the needs of our current and future clients,” Aryee added.
Meanwhile, Founder and president of LeapFrog, Dr Andrew Kuper said, “Given the size of the underserved market, visionary financial services companies that provide scalable solutions can be expected to provide top-tier investor returns.”
“We believe that the emerging consumer represents a tremendous opportunity for financial services businesses, and insurance in particular,” he added.