LeapFrog Investments has acquired a majority stake in UT Life Insurance Company (UT Life), one of the key players in the life insurance sector in Ghana. This is LeapFrog’s third direct investment in Ghana, and second in the life insurance sector.
UT Life is a rapidly growing life insurer, with a significant market share in funeral and educational savings policies. It is focused on the mass market and seeks to reach over 1 million people by 2020. The Ghanaian market offers major opportunities for growth, as insurance penetration is below 2% of GDP.
UT Life was formerly controlled by UT Holdings, a diversified Ghanaian holding company that acquired the insurer in 2010. UT Holdings, which also is a major owner of UT Bank, will remain a shareholder in UT Life and serve as a strong local counterparty to support the business on the ground. UT Life has a network of nine branches across the country and also operates through a bancassurance arrangement with UT Bank, which has 30 bank branches across Ghana. UT Holdings plans to use the proceeds from the sale to help enable growth at its other group subsidiaries, including UT Bank.
Doug Lacey, Partner at LeapFrog Investments, says: “We were attracted by UT’s unwavering commitment to Ghana’s mass-market. UT Life is exceptionally well positioned to grow, to prosper and to help millions to make the most of their lives. We’re backing that potential.”
Martyn Mensah, Chief Executive Officer of UT Holdings, says: “LeapFrog is the leader in designing insurance products for the mass-market and is made up by an exceptional team of strategic operators. They are the right partner to take UT Life to its next level of growth. We look forward to seeing UT Life reach new heights as a leading force in the Ghanaian life insurance market.”
Kwaku Yeboah-Asuamah, Chief Executive Officer of UT Life, says: “Our vision is to be the most innovative and affordable life insurer for the consumer mass market in Ghana. We believe our partnership with LeapFrog will give wings to our growth plans and enable us to benefit from LeapFrog’s rich insurance expertise and knowledge.”
