LeapFrog Investments, the World’s first and largest investor in companies that insure under-served people in Africa and Asia has entered into a strategic partnership with Asset & Resource Management Company to grow ARM’s recently acquired life insurance specialist company, CrystaLife Assurance Plc into industry leader in the Nigerian life insurance segment.
The $7.5m investment from LeapFrog – which has previously invested in insurance providers across Ghana, South Africa, Kenya, Uganda and Tanzania – is expected to help CrystaLife to cover life insurance for millions of Nigerians, tapping the vast opportunity of Africa’s emerging consumers.
CrystaLife intends to expand its group life insurance offering and develop a new retail offering. Crystalife MD/CEO, Mrs Seyi Oluseyi Ifuturoti in a statement said: “The market opportunity for insurance in Nigeria has grown rapidly, requiring businesses to rethink product design, pricing, and distribution strategies to effectively reach the increasing pool of potential customers,
Real GDP growth in sub-Saharan Africa has averaged 5.4 per cent annually over the past five years according to IMF estimates. But Nigeria has out-performed this average by having an average seven per cent growth for the past decade.
Inspite of this impressive growth however, Nigeria with a population of over 160 million still has about 110 million people lacking access to financial services thus presenting a significant challenge and opportunity.
For instance, Leapfrog’s partnership with AllLife, the only South African insurer of people living with HIV/AIDs had seen the company growing its client base by 200% last year and enabling it generate strong profits and significant social impact.