Mahindra and LeapFrog in Strategic Partnership to Design and Deliver Insurance Solutions to Millions in Rural India
- LeapFrog subsidiary to invest Rs. 80.41 crores (approx. US 15m) for 15% shareholding in MIBL
- MIBL currently valued at Rs. 520 crores (approx. US 96m)
- MIBL has serviced over 2.5 million people since inception in 2004
- Partnership will help design and deliver insurance solutions to millions in rural India
Mumbai Mahindra Insurance Brokers Ltd. (MIBL), a leading insurance broker primarily servicing rural and semi-urban India, today announced a strategic partnership with LeapFrog Investments, the worlds largest investor in insurance to under-served consumers. MIBL, which is a wholly-owned subsidiary of Mahindra Mahindra Financial Services Ltd. (Mahindra Finance) and a licensed Composite Broker, has achieved extraordinary growth and profitability over the past eight years. It is currently valued at Rs. 520 crores (approx. US 96m).
The investment of Rs. 80.41 crores (approx. US 15m), which is subject to necessary regulatory approvals, will be through LeapFrogs subsidiary company, Inclusion Resources Pvt. Ltd., Singapore, for a 15% stake in MIBL. LeapFrog will also be bringing in its international expertise, including in the areas of product design and distribution.
Since inception in 2004, MIBL has serviced over 2.5 million people, enabling them to protect their assets and loans taken for buying tractors and vehicles, and thus their livelihoods on which their families depend. The alliance is expected to have a significant impact on financial inclusion in the country as well as building value for all the stakeholders.
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 worlds largest investor in insurance for the under-served consumer. This partnership is a perfect
alignment between our philosophy of driving positive change and LeapFrogs 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, Mahindras guiding philosophy, Rise, embodies the groups 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. Mahindras 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 social 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 teams knowledge of distribution and product design 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 LeapFrogs second investment in the Indian market in the last twelve months, reinforcing its commitment to financial inclusion in South Asia. As an impact investment fund, LeapFrog targets both robust financial returns and significant social impact. LeapFrogs investments currently reach over 8 million people across 6 countries in Africa and Asia, empowering them with financial safety nets and springboards.
For further information please contact: