[Kenya] UK insurance firm Linkham Group acquires stake in Resolution Insurance
UK-based global insurance solutions firm, Linkham Group will acquire a stake in Resolution Insurance after purchase of 100% of the equity holding of private equity firm, Leapfrog Investment. The investment is expected to be completed in quarter one of 2021 subject to regulatory approvals in Kenya.
Resolution Insurance will immediately gain access to Linkham Group’s financial and insurance networks in Africa and across the globe and give customers greater choice, broader availability and better value in a hypercompetitive Kenyan insurance sector.
Mike Cranfield, Linkham Group CEO said the company, was excited to enter one of Africa’s very developed insurance sectors, “This investment lays the foundations for Resolution Insurance to leverage our global scale, resources, capability and efficiency needed to accelerate its growth and contribute to the economic and social prosperity of Kenyans, insurance service providers, policyholders and the local communities. We will bring our expertise in end to end delivery of insurance solutions to the financial services, airline, broker and card payments sector with leading-edge innovation that will challenge industry norms”, he said.
Peter Nduati CEO and founder of Resolution Insurance said that the business has for nearly 20 years relied on its local capabilities, heritage and experience to gain the scale, resources and execution capability to operate as a valuable provider of insurance in Kenya and other East African markets.
He noted that the past few years, the business environment presented a number of challenges including heightened competition, tight margins, customer affordability challenges, a tough macroeconomic environment and the current Covid-19 global pandemic, all of which put stress on individuals and companies across the board.
“We look forward to benefiting from Linkham Group’s international experience to streamline the services of the Resolution Group through technology transfer, shared IT & insurance-related infrastructure, business processes and enhanced underwriting expertise and network,” said Mr Nduati.
Linkham Group’s Mike Cranfield added that Resolution Insurance is an attractive investment due to its unique understanding of the local market as a purely Kenyan business founded by a visionary entrepreneur. “We want to compliment his passion by pursuing a focused and sustainable growth strategy through our innovative, consumer-centred localized global solutions,” he said.
Linkham Group, which was founded in 2007 and remains privately owned with operations in South Africa, Mauritius, the UK and Ireland, now finds a foothold into its 3rd market on the continent with the purchase.
Resolution Insurance was founded in 2002 as a medical insurance provider in Kenya, changing its name from Resolution Health to Resolution Insurance in 2013 as it expanded into East Africa. It grew to become a tier-two underwriter offering a variety of products from medical plans, travel plans, liability plans, property covers, motor covers and all other classes of general insurance.