The InsuResilience Investment Fund (IIF), managed by leading impact investment manager BlueOrchard Finance Ltd, has acquired 40% of Vanguard, a general and micro-insurance group operating in Ghana.
IIF was set up in 2015 by KfW Bank on behalf of the Federal Republic of Germany, with its main purpose being to contribute to the adaption to climate change by improving access to and the use of insurance in developing countries.
Vanguard was founded as the first private indigenous insurance company in Ghana, the company also makes a big impact in the commercial, SME, and retail sectors, and its branch network extends across the country.
The company also has digital distribution capabilities, which allows 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. Having effective and appropriate insurance products available 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,” said Richard Hardy, Investment Director Africa at BlueOrchard.
“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.”
IIF has acquired 40% of Vanguard and it will be appointing directors to the Vanguard board to assist the company in driving its market expansion further, rolling out its micro-insurance distribution capabilities, and further enhancing governance.
The investment in Vanguard helps align with the vision and principles of IIF and the InsuResilience Global Partnership that was launched at the 2017 UN Climate Conference, COP23 by Germany.
The visions of the Partnership are to strengthen the resilience of developing countries to the consequences of climate change, as well as to protect the livelihoods of poor and vulnerable people against extreme weather events and natural disasters.
The objectives of the Partnership are to enable more timely and reliable post-disaster responses and offer insurance solutions to reduce impacts and help poor and vulnerable people recover from them more quickly.
Addressing Vanguards partnership with BlueOrchard, Daniel Awuah-Darko, Chairman of Vanguard, said: “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.”