NAIROBI, Kenya, Feb 15– UK-based global insurance solutions firm, Linkham Group will acquire a stake in Resolution Insurance after agreeing to purchase 100percent of the equity holding of private equity impact investment firm, Leapfrog Investments, for an undisclosed sum.
The agreement is subject to certain closing conditions, including regulatory approvals in Kenya, and is expected to complete within this quarter.
The Insurance Regulatory Authority (IRA) of Kenya gave a nod to the parties to progress the transaction to completion in a move that will see Resolution Insurance business immediately gain access to Linkham Group’s financial and insurance networks in Africa and across the globe.
Linkham Group insurance and reinsurance practices focus on providing innovative products relevant to each of their markets.
The investment will give Resolution Insurance customers greater choice, broader availability and better value in a hypercompetitive Kenyan insurance sector at a time when a global health pandemic has put tremendous pressure on health service providers.
Linkham Group, which was founded in 2007 and remains privately owned with operations in South Africa, Mauritius, the UK and Ireland, now finds a foothold into its 3rd market on the continent with the purchase.
Linkham Group Chief Executive Officer Mike Cranfield, said the company, was excited to enter one of Africa’s very developed insurance sectors at a time of unprecedented challenge for businesses and consumers, emphasizing that the entry into a 3rd African market was further evidence of the group’s commitment and investment in Africa and firm belief in the tremendous growth prospects that the continent offers.
“This investment lays the foundations for Resolution Insurance to leverage our global scale, resources, capability and efficiency needed to accelerate its growth and contribute to the economic and social prosperity of Kenyans, insurance service providers, policyholders and the local communities. We will bring our expertise in end to end delivery of insurance solutions to the financial services, airline, broker and card payments sector with leading–edge innovation that will challenge industry norms,” said Cranfield.
“Resolution is an attractive investment because of its unique understanding of the local market as a purely Kenyan business founded by a visionary entrepreneur. We want to compliment his passion by pursuing a focused and sustainable growth strategy through our innovative, consumer-centred localized global solutions”.
Resolution Insurance was founded by businessman Peter Nduati in 2002 as a medical insurance provider in Kenya.
The company changed its name from Resolution Health to Resolution Insurance in 2013 as it expanded into East Africa.
It grew to become a tier two underwriter offering a variety of products from medical plans, travel plans, liability plans, property covers, motor covers and all other classes of general insurance.
“For nearly 20 years, we relied on our local capabilities, heritage and experience to gain the scale, resources and execution capability to operate as a valuable provider of health insurance in Kenya and other East African markets – serving our customers and stakeholders diligently in a sector whose market dynamics continue to be very challenging,” said Resolution Insurance CEO, Peter Nduati.
Nduati said over the past few years, the business environment presented a number of challenges including heightened competition, tight margins, customer affordability challenges and a tough macroeconomic environment and the current Covid-19 global pandemic, all of which put stress on individuals and companies across the board.