18 June 2014
Press ReleasesThames Valley accountants and business advisers James Cowper Kreston has advised leading global microinsurance specialist MicroEnsure on its fundraising.
MicroEnsure announced earlier this month that it has raised $10.4m from its existing investors, as well as from Sanlam Emerging Markets and AXA, to help finance its rapid continued expansion into new markets.
Following an 88% increase in the number of clients served in the past five months, the UK-based company now covers more than 7.6million people across Africa and Asia with a range of accessible insurance products including life, health, personal accident and property. Through its partnerships with mobile network operators and microfinance banks, the company expects to enter a further three new countries reaching 12.7million clients by the end of 2014.
“MicroEnsure is delighted to have Sanlam Emerging Markets and AXA invest in the Group and join Telenor, IFC, Omidyar Network and Opportunity as strategic investors,” explained Richard Leftley, CEO for MicroEnsure. “Sanlam and AXA’s underwriting capacity and skills will be critical additions to our existing investors as we continue to rapidly expand and reach millions of low and middle income families in new territories”.
In parallel with this investment round the Telenor Group has taken equity in the MicroEnsure Group through a conversion of debt and by merging its 51% shareholding in the “MicroEnsure Asia” Joint Venture with MicroEnsure Holdings Ltd.
Heinie Werth, CEO of Sanlam Emerging Markets at Sanlam commented, “Our partnership with MicroEnsure will complement us well on the high volume, low premium micro insurance side for both life and non-life products where we will be the preferred insurance underwriter. In addition to this, MicroEnsure overlaps our footprint across Africa and India with future opportunities in Malaysia. We regard the company as the ideal partner through which to extend our micro-insurance offering.”
Speaking about the investment, Laurent Clamagirand, Chief Investment Officer at AXA said, “We are very happy to take part in the rapid expansion of MicroEnsure into new markets. Investors usually either maximise risk adjusted returns or donate to maximise social impact. Our impact investment policy is designed to balance both outcomes. Our investment in MicroEnsure perfectly illustrates this commitment.”
Stewart Lambert, Partner, James Cowper Kreston, said: “We are delighted to work alongside Richard Leftley and his team at MicroEnsure. We advised the company on its initial fund raising and partnership arrangements and are pleased to be part of its ongoing success.”
