[Microinsurancefocus] World's First Microinsurance Fund Announces Major New Investors J.P. Morgan, TIAA-CREF, Proparco, Waterloo, ACE - LeapFrog Fund Achieves Record Close of $137 million

[Phyl Georgiou]

WASHINGTON, May 6, 2010 /PRNewswire via COMTEX/ -- Today the world's first
microinsurance fund, LeapFrog Investments, announced its final close on $137
million for investments in Africa and Asia - a record amount that makes
LeapFrog the largest investor in microinsurance worldwide. The fund
announced major new investors including J.P. Morgan, TIAA-CREF, and Proparco
as well as the Waterloo Foundation and the ACE Group. "As leaders from
around the world and across sectors gather here at IFC headquarters," said
Andrew Kuper, President and Founder of LeapFrog, "we mark a historic moment:
the birth of a new social-purpose asset class that will generate profits for
investors while lifting tens of millions out of poverty." 

President Bill Clinton has hailed LeapFrog as "the Insurer to the Poor," and
is among the many leaders who have recognized LeapFrog's profit-with-purpose
approach as opening up new frontiers for microfinance and alternative
investment. The fund's portfolio companies are anticipated to reach 25
million low-income and vulnerable people in Africa and Asia with
life-changing financial services. The companies may offer a range of
affordable products including health and life insurance as well as
low-income housing and weather index insurance. Safety nets of this kind can
be critical to better coping with natural disasters that have afflicted
countries such as Chile and Haiti. 

"J.P. Morgan is proud to support the LeapFrog fund in its efforts to provide
low-income communities with the safety and security necessary to increase
income, build assets, and escape poverty," said John Buley, Jr., Managing
Director of Social Finance at J.P. Morgan. "We believe that microinsurance
is a key innovation that will further the development of business in the
social sector, and represents a massive opportunity to meet the inclusive
financial services needs of low-income people in developing countries," he
added. Scott Budde, Managing Director of Global Social and Community
Investments at TIAA-CREF concurred: "From an impact perspective, we see
microinsurance as a valuable complement to other socially responsible
financial services for low income clients, while also providing competitive
returns to investors." J.P. Morgan committed $10 million and TIAA-CREF $7
million to the fund. 

LeapFrog also provided new details on its innovative investment strategy.
Based on avid interest from local insurers, LeapFrog is identifying and
screening a variety of larger opportunities in its priority countries
including India, Kenya, Ghana, South Africa and the Philippines. The fund
plans to invest in and alongside insurers as well as large distributors,
such as microfinance institutions, retail chains, religious groups, and
mobile phone networks. LeapFrog expects to deploy around $5 million to $15
million in each portfolio company, to join the board, and to bring deep
operational expertise to bear to drive growth and success on the double
bottom line. 

The fund has already invested in AllLife, a profitable South African life
insurer that exclusively serves people living with HIV and diabetes.
AllLife's innovative adherence program helps clients to lead relatively long
and healthy lives, and makes people with pre-existing conditions insurable.
Ross Beerman, CEO of AllLife, in his address to the assembled global
leaders, will draw out lessons from this social business for both developing
and developed countries, including the United States. 

Other investors in LeapFrog include the Soros Economic Development Fund and
the Omidyar Network (created by eBay founder Pierre Omidyar), the largest
development banks including IFC (part of the World Bank Group), KfW, and
EIB, as well as major reinsurers Flagstone Re and SCOR. Microinsurance is
being sold profitably in many countries and shows enormous potential for
growth, with a recent Lloyds study estimating the market to be 1.5 billion
people. 

LeapFrog's team now has the unparalleled capital and distinctive expertise
to lead the development of this pro-poor industry. Kuper concluded, "Our
team reached this mountaintop against the headwinds of the global financial
crisis, driven by a clear vision and value proposition. We don't believe you
have to choose between money and meaning." 

SOURCE LeapFrog Investments 

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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