PE Tech Report


Like this article?

Sign up to our free newsletter

LeapFrog invests in Sri Lankan insurer Softlogic Life

LeapFrog Investments has made a USD12 million investment in Softlogic Life Insurance, purchasing the shares of FMO, the Dutch development Bank.

The company is one of Sri Lanka’s fastest growing life insurers, providing locals with individual life and health, group life, and other policies. The main shareholders of the Company are now Softlogic Capital, DEG and LeapFrog Investments.
“The team, products and high growth of Softlogic Life make for an outstanding company. We are thrilled to see them join the LeapFrog portfolio,” says Dr Andrew Kuper, Founder and CEO of LeapFrog Investments. “This investment reveals our positive view of Sri Lanka’s long-term trajectory, and its financial services industry. The deal also caps the best year of deployment in the history of our firm.”
“We are excited about the next wave of growth for Softlogic Life and our ability to continue to accelerate our market-growth strategy in partnership with the LeapFrog team and the insurance and financial services expertise they bring to the table. We are deeply appreciative of FMO’s partnership to build our Company to this strong position and are happy to have provided an excellent return on exiting their investment,” says Ashok Pathirage, Chairman Softlogic group. “LeapFrog has a reputation for partnering to achieve channel expansion, as well as to help solidify strategic relationships that underscore growth – two continued areas of focus for the Softlogic Life business. We hope that this is the first of many investments in Sri Lanka and with the Softlogic Group.”
“Sri Lanka presents a compelling investment opportunity, with an underpenetrated yet high growth insurance market,” says Fernanda Lima, Director, LeapFrog Investments. “By taking advantage of a diversified distribution strategy, and in-particular delivering insurance in partnership with mobile companies and financial institutions, we will be able increase the reach of relevant products into the country’s emerging consumer segment, who have traditionally been excluded from easy, and affordable access to insurance.”
Mobile insurance products significantly open-up access to the emerging consumer demographic – people living under USD10 a day. LeapFrog was an early investor in BIMA, which in only four years grew to become the leading emerging consumer mobile insurer, scaling to over 30 million polices for emerging consumers in only four years. LeapFrog sold the majority of its stake in BIMA as part of a USD96.6 million investment to Allianz X, the digital investment unit of Allianz group.
An innovator in insurance, Softlogic Life was recently selected as one of the Top 3 Insurers in the Asian region by Asian Insurance Review and has won a multitude of accolades.  Its strong brand and customer-centric agent force combined with tailor-made products are enabling strong growth.
FMO, the Dutch Development Bank who exited their holding to LeapFrog, says: “FMO has been an investor in Softlogic Life Insurance PLC since December 2012, at that time a small insurance company, combining general and life insurance products. Some of the main reasons to invest were the professional staff, Softlogic Group being a strong shareholder and the company’s approach to introducing innovations in the insurance sector,” says Linda Broekhuizen Chief Investment Officer FMO. “By making insurance products customer friendly and increasing accessibility, the Softlogic Life team improved financial inclusion in Sri Lanka.  We are proud that the company has performed so well that the reputable LeapFrog Investments took over to further guide the company.”
With a population of 21 million, Sri Lanka is currently underserved with life and health insurance products yet represents a strong growth opportunity with penetration at only 0.6 per cent versus GDP. Between 2012 and 2017, the insurance industry grew at a CAGR of 12 per cent driven by growing awareness of the benefits of insurance as well as the introduction of new and innovative products to service the market.

Like this article? Sign up to our free newsletter




Blackstone Private Equity