Scor invests in Leapfrog microinsurance fund

Microfinance Focus, Nov. 23, 2009: SCOR, the Paris-based global reinsurer, has invested an unspecified amount in LeapFrog, the world’s first microinsurance fund. The fund invests in businesses that bring insurance products to low-income and vulnerable people in Africa and Asia, reaching 25 million beneficiaries.
LeapFrog Investments manages the world’s first microinsurance fund. Launched by former US President Bill Clinton in 2008, LeapFrog has raised $47 million to date from banks, funds, and microfinance and insurance investors.

“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.”
SCOR covers both Life and Non-Life reinsurance, with specialist teams operating in over 52 countries. As of Sept. 30, 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%).
With this investment, SCOR joins other private investors like 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 approach to tap the market for microinsurance.
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.

Related Posts:

• Microinsurance fund LeapFrog invests $6M in Africa’s AllLife
• LeapFrog Microinsurance Fund Announces Major New Investors, fund close of $137 million
• LeapFrog Poised to Invest $112 Million in Insurance and Microfinance Companies
• J.P. Morgan Set to Join World’s First Microinsurance Fund – LeapFrog Fund
• Sarona invests in Microfinance, Renewable Energy and SMEs
• Microinsurance potential market between 1.5 and 3 billion policies: Lloyd’s report
• Microinsurance – The first option for the vulnerable to manage risks
• 2009: An eventful year for Microinsurance Network

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