Impact Investment Profile

Investor

LeapFrog Investments

Investee

AllLife

LeapFrog Investments (LeapFrog) invests in companies that provide health and financial services to emerging consumers in Africa and Asia. With $1 billion in assets under management, it brings capital and value-adding specialist expertise to its partner companies. LeapFrog is committed to profit with purpose, delivering private equity style returns and measurable social impact.

Investor Targeted Impact

Provide safety nets and springboards to low-income and vulnerable people through access to financial services

Investor

Name LeapFrog Investments
Investor description LeapFrog Investments (LeapFrog) invests in companies that provide insurance and related financial services to low-income and vulnerable people in Asia and Africa. Its USD 535 million fund brings capital and value-adding specialist expertise to companies that serve or seek to expand their business to serve low-income or excluded clients, the "next billion" emerging consumers. LeapFrog aims to generate robust commercial and social returns in its investments.

Investee

Name AllLife
Sector Financial Services
Geography sub-Saharan Africa - South Africa
Investee business model AllLife provides affordable life insurance to thousands of people living with HIV/AIDS and diabetes and improves the health experience of insured individuals through the company's unique adherence management program. This program alerts clients to potential health concerns and helps them take action--such as undergoing regular testing and taking anti-retroviral medications--to maintain their well-being. AllLife's underwriting process enables it to generate robust profits and social impact by serving a population that previously had no access to affordable life insurance and was seen as uninsurable.
Motivations for investment AllLife is an attractive investment opportunity for LeapFrog because of its distinctive and successful business model reaching customers that other insurers have not served. AllLife is the only dedicated insurer of people living with HIV/AIDS in South Africa. It has a strong management team and strategic plan to enable future growth.

Investment

Instrument Equity
Investment size USD 13.9 million
Source of deal The deal was identified and recommended by LeapFrog partner Dominic Liber, who was familiar with the company partly due to his role as the Convener of the AIDS Committee of the Actuarial Society of South Africa.
Stage of company at time of investment Early stage
Purpose of investment LeapFrog's investment enables AllLife to accelerate its growth and diversify its products and services. Since the first investment was made in 2010, the company has more than doubled annual revenue, opened a second call center, expanded its senior team and staff, and introduced new products. Throughout this expansion, AllLife has continued to provide quality insurance products suited to the needs of those living with diabetes or HIV/AIDS.
Investment impact objectives Through this investment LeapFrog supports the design and delivery of affordable insurance to many individuals typically excluded from the life insurance market. The majority of AllLife's clients previously had been unable to obtain insurance or could do so only at a very high cost, preventing them from taking out home loans, starting businesses, or engaging in other economic activities requiring insurance. By providing insurance to these individuals, AllLife helps them live long, productive lives. AllLife clients show measurable improvements in health outcomes. Access to life insurance along with widespread advertising by AllLife reduce the stigma associated with those living with HIV/AIDS.
Social and environmental metrics tracked on investment Key social performance metrics, including IRIS metrics (IRIS alignment noted in parentheses) tracked by LeapFrog include: Clients Dependents (beneficiaries) supported Client Individuals (IRIS aligned - PI4060)Client Individuals Provided New Access (IRIS aligned - PI2822) Earned Premium (IRIS aligned - PI2025)Average Insurance Premium (IRIS aligned - PI1934) Claims Rejection Ratio (IRIS aligned - PI7902)

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