Equity firm to pay Sh1.7bn for stake in Resolution Health

Private equity firm LeapFrog Investments is set to acquire a majority stake in Resolution Insurance, through its holding company Resolution Health East Africa, for Sh1.68 billion ($18.7 million).

The proposed transaction comes after the PE firm, whose backers include George Soros and JP Morgan, exited Apollo Investments in October when it sold its 26.9 per cent stake to SwissRe Direct, cashing in on an investment it made in 2011.

“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,” LeapFrog partner Dominic Liber said in a statement.

Resolution’s CEO Peter Nduati said the company will benefit from LeapFrog’s dedicated operational investing approach, strong track record in health insurance and emerging consumer expertise.

LeapFrog has investments in insurance underwriters and distributors in Ghana, Nigeria, South Africa and India.

The insurance firm draws the bulk of its earnings from medical insurance targeting the middle class but is increasingly focusing on diversifying into the wider general insurance business including accident cover.