Ghana: BlueOrchard-managed fund invests in insurance firm
The InsuResilience Investment Fund (IIF), managed by impact investment manager BlueOrchard, has acquired a stake in Vanguard Assurance Limited, a general and micro-insurance group operating in Ghana. IIF is set up on behalf of the German government by KfW.
Vanguard was founded as the first private indigenous insurance company in Ghana. The business has a strong presence in the commercial, SME and retail sectors and its branch network extends across the country. The company has digital distribution capabilities allowing it to reach low-income and rural customers beyond its branch network, with the potential to reach more than 500,000 individual policyholders by 2026. Ghana’s low-income population is particularly vulnerable to floods and droughts as a result of climate change. Appropriate insurance products are an important tool in improving the resilience of communities.
“We are deeply aligned with Vanguard’s customer centric values and have been impressed with the team’s commitment to innovation. Digitalisation represents a significant opportunity for the industry, and we are excited to be partnering with Vanguard as they continue to develop pioneering products and services for the Ghanaian market,” said Richard Hardy, investment director Africa at BlueOrchard.
IIF has acquired 40% of the company and will appoint directors to the Vanguard board to assist the company in driving its market expansion, rolling out its micro-insurance distribution capabilities, and further enhancing governance. Through the IIF Technical Assistance Facility, it will support Vanguard in developing new products and raising market awareness for climate risk mitigation.
“We are excited to partner with BlueOrchard to deliver on our mission of developing innovative insurance offerings for multiple segments of the market and are confident that BlueOrchard’s experience and knowledge of the financial services sector, globally, will further strengthen our business and drive significant growth,” said Daniel Awuah-Darko, chairman of Vanguard.
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