The InsuResilience Investment Fund (“IIF”) managed by leading impact investment manager BlueOrchard Finance Ltd (“BlueOrchard”) has acquired a stake in Vanguard Assurance Limited (“Vanguard”), 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 and has become a household name. 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 percent 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.
The investment in Vanguard aligns with the vision and principles of IIF and the InsuResilience Global Partnership (“the Partnership”), which was launched at the 2017 UN Climate Conference COP23 by Germany. The vision of the Partnership is to strengthen the resilience of developing countries to the consequences of climate change and to protect the livelihoods of poor and vulnerable people against extreme weather events and natural disasters. The Partnership’s objective is to enable more timely and reliable post-disaster response and offer insurance solutions to reduce impacts and help poor and vulnerable people recover more quickly.