LeapFrog, a specialist investor in emerging markets financial services said Resolution was a strong and growing business, with an exceptional management team.
(READ MORE: Kenya’s life insurance industry on the upswing)
“Resolution is a strong and growing business, with an exceptional management team. In a short time, Resolution has grown to become Kenya’s fourth largest health insurer and positioned itself as a rising star in East Africa’s fast-expanding health insurance space,” said LeapFrog partner Dominic Liber.
“Our investment positions Resolution to take the next leap in its growth, and we look forward to working with them to expand their reach in health insurance and beyond.”
Resolution chief executive, Peter Nduati, said his group was excited over the move.
“We are excited to partner with LeapFrog for our next stage of growth,” said Ndauti.
“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.”
Insurance in East Africa is a high potential market, estimated to be a two billion US dollars opportunity.
(READ MORE: Africa’s untapped insurance market a vast opportunity for firms)
In particular, the Kenyan non-life insurance market is growing rapidly at 20 per cent per annum, fuelled by a robust health insurance sector expanding at 38 per cent per year.
There is a major opportunity to extend access to health and diversified insurance to millions of low-income emerging consumers across East Africa, leveraging Kenya’s strategic position as a regional leader and gateway in.
Liber added that East Africa is home to a 150 million strong population with insurance penetration rates below four per cent, 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.”