[Microinsurancefocus] Press Release: SCOR Invests in LeapFrog

[Phyl Georgiou]

Leading Global Reinsurer SCOR Invests in LeapFrog, Groundbreaking
Microinsurance Fund


Backing brings Fund to USD $47M and demonstrates strong commercial appeal of
new market


Press Release 

Source: LeapFrog Investments 

On 9:00 am EST, Wednesday November 25, 2009

PARIS, Nov. 25 /PRNewswire/ -- SCOR, the Paris-based global reinsurer, has
announced an investment in LeapFrog, the world's first microinsurance fund.
SCOR joins a diverse set of public and private investors, including the
European Investment Bank, Omidyar Network, FMO, Triodos-Doen, Hivos-Triodos
Fund, ACCION International, Calvert Large Cap Growth Fund, and wealth
manager Felipe Medina, in backing LeapFrog's distinctive approach to tapping
the massive market for microinsurance. The fund invests in businesses that
bring insurance products to low-income and vulnerable people in Africa and
Asia, and targets strong returns for investors while reaching 25 million
beneficiaries.

"Our investment in LeapFrog is a demonstration of our support of a
socially-responsible sector such as microinsurance," says Paolo De Martin,
Chief Financial Officer of SCOR. "The Group believes that the microinsurance
sector is a market that has the potential to expand very quickly as it
represents more than one billion individuals without access to traditional
insurance services such as life, health, disability or livestock insurance.
The investment was done based on strict investment return criteria applied
by SCOR for all its investments."

Numerous studies have demonstrated that low-income people in developing
countries are willing and able to pay for a safety net that protects their
family or business, but they generally cannot access affordable and quality
insurance. Last week, Lloyds released a new study by the Microinsurance
Center (MIC), estimating a market size of 1.5 and 3 billion policies. It
notes that microinsurance already covers around 135 million people, and has
an annual growth rate in excess of 10%, but only 5% of the potential market
is penetrated -- a significant opportunity.

"SCOR's commitment confirms the coming of age of microinsurance as a
profitable investment class," says Dr. Andrew Kuper, LeapFrog's Founder and
President. "For the global insurance industry, growth will come largely from
emerging markets -- we cannot ignore the 83% of the population in Asia and
95% in Africa classified as low-income. The industry has a historic
opportunity to develop profitable businesses that serve this immense
customer base. LeapFrog invests in these exciting businesses, anticipating
strong social and financial returns."

Beyond financial capital, LeapFrog can provide portfolio companies with
support in business planning, product design, regulatory and risk
management, or development of efficient high-volume distribution channels.

According to the MIC study, in addition to profit there are several benefits
to commercial insurers in providing and investing in microinsurance. These
include a large, diversified risk pool, reputational benefits, improved
relations with government, market intelligence and innovation applicable
across a range of business activities.

LeapFrog Investments created and manages the world's first microinsurance
fund. Launched by President Bill Clinton in 2008, LeapFrog has raised $47
million to date from banks, funds, and microfinance and insurance investors.
Its profit-with-purpose investment approach has been hailed by many global
leaders as a new frontier for alternative investment and microfinance.
www.leapfroginvest.com
<http://us.lrd.yahoo.com/_ylt=An0IzMxMGqES._iX7AZyLXmxcq9_;_ylu=X3oDMTE2bjEw
MjJvBHBvcwMxBHNlYwNuZXdzQXJ0Qm9keQRzbGsDd3d3bGVhcGZyb2dp/SIG=113fna42r/**htt
p%3A/www.leapfroginvest.com/>  

SCOR is a leading global reinsurer, covering both Life and Non-Life
reinsurance. SCOR's specialist teams operate in over 52 countries,
developing value added, innovative and made to measure products and services
and making long-term commitments to their clients, namely insurers and large
corporations. At 30 September 2009, SCOR's total investments, including
cash, stand at EUR 19,699 million. Investments consist of fixed income
(44%), funds withheld by cedants (40%), cash and short-term investments
(9%), equities (4%), real estate (2%) and alternative investments (1%).
www.scor.com
<http://us.lrd.yahoo.com/_ylt=AnjPDs3ygpYDeTt8uCaxRrOxcq9_;_ylu=X3oDMTE0cTZz
djZkBHBvcwMyBHNlYwNuZXdzQXJ0Qm9keQRzbGsDd3d3c2NvcmNvbQ--/SIG=10pfko51r/**htt
p%3A/www.scor.com/> 

This article can be seen at:
http://finance.yahoo.com/news/Leading-Global-Reinsurer-SCOR-prnews-382343474
9.html?x=0
<http://finance.yahoo.com/news/Leading-Global-Reinsurer-SCOR-prnews-38234347
49.html?x=0&.v=1> &.v=1

 

 

Phyl Georgiou

Investment Analyst

LeapFrog Investments Ltd.

M +61 431 137 750

E  <mailto:phylgeorgiou at leapfroginvest.com> phylgeorgiou at leapfroginvest.com

 

www.leapfroginvest.com

 

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