Mahindra Insurance Brokers Ltd. (MIBL), a leading insurance broker for rural and semi-urban India, today announced a strategic partnership with LeapFrog Investments, a profit-with-purpose investor focused on financial services for under-served consumers.
Mr. Ramesh Iyer, Managing Director - Mahindra & Mahindra Financial Services Limited, Mr. Anand Mahindra, Chairman, Mahindra Group, Dr. Andrew Kuper, President and Founder of LeapFrog Investments, Mr. Bharat Doshi, Chairman, Mahindra Finance, Dr. Jaideep Devare, Managing Director, Mahindra Insurance Brokers Ltd., and Mr. Stewart Langdon, Director of Investments, LeapFrog Investments announce a strategic partnership between Mahindra Insurance Brokers Ltd. (MIBL) and LeapFrog Investments. (Photo: Business Wire)
LeapFrog´s investment of nearly US$15m (INR 804,100,000) will reach millions of people in rural India, enabling them to protect their assets and loans on tractors and vehicles, and thus the livelihoods on which their families depend. The alliance will build the business and have a significant impact on financial inclusion in South Asia.
MIBL, a wholly-owned subsidiary of Mahindra & Mahindra Financial Services Ltd. (Mahindra Finance), has achieved extraordinary growth and profitability over the past eight years. The business is currently valued at approximately US$96m (INR 5,200,000,000). The investment, subject to necessary regulatory approvals, will give LeapFrog a 15% stake in MIBL and will channel significant capital into the business alongside LeapFrog´s international expertise in areas such as product design and distribution.
Since inception in 2004, MIBL has serviced over 2.5 million people, the vast majority of whom reside in rural or semi-urban areas. LeapFrog and MIBL will partner to grow the business, providing financial safety and springboards to escape poverty at a scale that is unprecedented in India.
Mr. Anand Mahindra, Chairman, Mahindra Group, hailed the transaction as being transformative for the Indian insurance sector, saying, "Mahindra Finance is one of the largest Non-Banking Financial Companies in India and LeapFrog is the world´s largest investor in insurance for the under-served consumer. This partnership is a perfect alignment between our philosophy of driving positive change and LeapFrog´s socially conscious investment strategy. Together we will provide financial services that protect and enable millions of people to secure their future."
Dr. Andrew Kuper, President and Founder of LeapFrog said, "Mahindra´s guiding philosophy, Rise, embodies the group´s determination to drive positive change in its customers´ lives. LeapFrog invests in innovative companies that bring critical financial services to the next billion rising consumers. Mahindra´s reach, ethics and ethos make it an ideal partner for us and the MIBL team has an outstanding track record of driving growth, profitability, and impact. We are keen to support the next leap of reach, performance and innovation for this outstanding business."
Mr. Bharat Doshi, Chairman, Mahindra Finance, said, "MIBL is playing a significant role in the insurance broking industry in India with a focus on adding value to customers through innovative solutions, superior services and driving positive change in the lives of people. In LeapFrog, we have a strategic partner with world-leading insurance expertise in emerging markets. It is our constant endeavour to add value to our customers through the financial services we offer, and our association with LeapFrog will provide us with an additional platform to touch and transform their lives. The LeapFrog team´s expertise sets it apart from other investors and collaborators, and will make a profound difference to our shared mission of industry leadership and social impact."
MIBL is LeapFrog´s second investment in the Indian market in the last twelve months, reinforcing its commitment to financial inclusion in South Asia. LeapFrog targets both robust financial returns and significant social impact; its investments currently reach over 8 million people across 6 countries in Africa and Asia.
Building on Mahindra Finance´s extensive rural footprint, MIBL aims to become India´s leading insurance broker by 2015. LeapFrog´s capital and specialist insurance expertise will enable MIBL to deepen and extend its presence in rural and semi-urban communities with expanded product offerings and innovative new initiatives that will transform financial inclusion for the rural poor.
About LeapFrog Investments
LeapFrog is the world´s largest investor in inclusive insurance and related financial services. Launched with former US President Bill Clinton, the fund invests in companies serving the next billion, the vast untapped market of emerging consumers in Africa and Asia. LeapFrog brings distinctive value-adding support and global best practices in insurance to its portfolio of companies. As a leading impact investor, LeapFrog aims to generate robust investment returns while reaching and protecting 25 million low-income and excluded people.
Investors in LeapFrog´s high impact investment fund include global banks such as JP Morgan, Triodos, International Finance Corporation, KfW, and the European Investment Bank; leading funds such as Soros EDF, TIAA-CREF, Omidyar Network, FMO, and Calvert; global reinsurers SCOR and Haverford; and development financiers including Proparco and Accion Frontier Investments Group.
Twitter: @LeapFrogInvest
About Mahindra & Mahindra Financial Services Ltd.
Mahindra & Mahindra Financial Services Ltd (Mahindra Finance), is part of the US $15.4 billion Mahindra Group, and is one of India´s leading Non-Banking Finance Companies with a pan India presence. Focused on the rural and semi-urban markets, it provides finance for vehicles & tractors and has the largest network of branches amongst NBFCs operating in these areas.
Mahindra Insurance Brokers Ltd. (MIBL) is a wholly-owned subsidiary company of Mahindra & Mahindra Financial Services Ltd., and is a licensed Composite Broker providing Direct and Reinsurance broking services.
About The Mahindra Group
The Mahindra Group focuses on enabling people to rise. Mahindra operates in the key industries that drive economic growth, with a presence in the automotive industry, agribusiness, aerospace, components, consulting services, defence, energy, financial services, industrial equipment, logistics, real estate, retail, steel and two wheelers.
A USD 15.4 billion multinational group based in Mumbai, India, Mahindra employs more than 144,000 people in over 100 countries. In 2011, Mahindra featured on the Forbes Global 2000 list, a listing of the biggest and most powerful listed companies in the world. Dun & Bradstreet also ranked Mahindra at No. 1 in the automobile sector in its list of India´s Top 500 Companies. In 2010, Mahindra featured in the Credit Suisse Great Brands of Tomorrow.
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