(Bloomberg) — Global insurance companies are flocking to Africa, where millions of people have started earning enough to afford business cover and protection for their families, said private equity firm LeapFrog Investments.
"We're at an immense inflection point in history where millions of people in Africa are starting to be able to manage risk, and insurers are providing the tools," Andrew Kuper, founder of LeapFrog, which specializes in insurance and related financial services for emerging consumers, said by phone from Sydney on Oct. 29. "We're seeing increasing commitment from major insurers in terms of check size and sheer numbers."
American International Group Inc., the largest commercial insurer in the U.S., Swiss Re AG and France's Axa SA have all invested in LeapFrog funds. The firm sold a minority stake in Kenya's Apollo Investments Ltd. to Swiss Re on Oct. 8 and last year sold Ghana's Express Life Co. to Prudential Plc. LeapFrog generated an internal rate of return of about 80% on Express Life, according to Private Equity International.
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