Swedfund invests in Kenyan insurance company

UAP Holdings Limited (UAP), an insurance company with operations in Kenya, Uganda, and South Sudan, has received capital to finance expansion in the region, including Rwanda.  Swedfund will contribute US$ 10 million to finance this growth.

Insurance company UAP, established in 1977, has operations in Kenya, Uganda and South Sudan. UAP owns a property insurance company and a life insurance company in each of these countries, which makes a total of 22 branches and some 500 employees. With funding from Swedfund and two venture capital companies, UAP will be able to set up businesses in Rwanda, eastern Democratic Republic of Congo and Tanzania.

To have a functioning insurance sector is of great importance for a country, as it plays an important role in building a sustainable country. Several of the markets in which UAP is active and wishes to establish, have small and undeveloped insurance sectors. This investment will enable Swedfund to contribute to the development of the sector, as well as generating demonstration effects and creating demand for more brokers and agents.

“UAP is a well established company with a competent management. The company’s goal to grow regionally in combination with its ability to develop new insurance products makes this investment particularly interesting to us,” says Jonas Armtoft, head of Swedfund’s office in Nairobi.

Swedfund is investing US$ 10 million in equity in UAP Holdings Ltd, while Aureos Africa Fund invests US$ 20 million and AfricInvest invests US$ 25 million.