As the African Insurance Organisation’s general assembly got underway in Cairo, two new private capital vehicles announced moves into the African insurance market, highlighting growing interest in the region and confidence in the sector.
3IF Ventures, the first impact venture capital fund dedicated to Africa’s insurance start-up ecosystem, has announced the first close of the inclusive insurance investment at US$12 million. The fund is co-anchored by FSD Africa Investments (FSDAi) and ZEP-RE (PTA Reinsurance Company), and will provide equity capital from pre-seed to series B to early-stage businesses across Africa.
And Vitruvian Partners, an international investment firm headquartered in London, has agreed to make a strategic investment in Africa Specialty Risks (ASR), the developing-markets-focused re/insurance group. The transaction, whose terms were not publicly disclosed, is expected to close in late 2026, subject to regulatory approvals and other customary closing conditions.
Closing protection gap
3IF Ventures explains “Africa’s insurance protection gap is one of the most underserved opportunities but also one of the most significant barriers to economic resilience on the continent. Uptake remains constrained by three persistent challenges: awareness, accessibility and affordability, resulting in more than 1 billion people not having access to any form of insurance cover.”
It aims to convert that untapped market into a commercial opportunity by backing technology-enabled insurance businesses across four thematic verticals: climate and disaster resilience; agriculture and rural livelihoods; digital health and wellbeing; and SMEs and asset protection.
The Fund, which targets a final close of US$30 million, plans approximately 15-20 portfolio investments. 3IF Ventures will also operate a technical assistance facility sized at approximately 20% of total fund commitments.
3IF Ventures is structured as a blended investment vehicle including a catalytic capital junior tranche used to unlock private capital. The Fund intends to achieve substantial socio-economic impact and climate resilience in Africa over the Fund’s lifetime, targeting:
- More than 5.9 million new insurance policies issued;
- More than 3.5 million households and SMEs with improved financial resilience; and
- More than 1.7 million jobs created, sustained and retained.
Partnership in action
Anthony Chaillet and Mario Wilhelm, general partners, 3IF Ventures, agreed “Reaching first close with FSD Africa Investments and ZEP-RE on the same cap table is a market signal: impact and private capital are now investing in the same insurance technology pioneers.
“Africa’s protection gap is the most under-served commercial opportunity of the decade, closing it requires patient capital, local risk capacity and industry-grade portfolio support, working in concert. With a pre-qualified pipeline of 15 insurance ventures across 10 African markets, we are ready to deploy capital and look forward to engaging with strategic private and public partners as we enter the next stage of our growth.”
Anne-Marie Chidzero, chief investment officer, FSD Africa Investments, added “FSDAi’s investment in 3IF Ventures reflects our conviction that the insurtech sector is ready to scale – built on a pipeline of 135 early-stage businesses supported through BimaLab.
“As the first investment vehicle dedicated to inclusive insurance in Africa, 3IF Ventures brings institutional rigour to a segment that has long lacked it. This first close proves that when sector expertise, the right capital structure and the right partners align, the protection gap becomes an investable proposition.”
Advancing sustainable development
Meanwhile, ASR said its partnership with Vitruvian will enable it to advance its mission to enable sustainable economic development by meeting insurance needs. ASR was founded in 2020 by industry specialist Mikir Shah, with Helios Investment Partners, the largest Africa-focused private investment firm, as partner. Now Helios is selling its majority stake in the re/insurance group to Vitruvian.
The reinsurer issued its first policy in 2021 and has since established its operation, Syndicate 2454, the only dedicated growth-economy Syndicate at Lloyd’s, along with reinsurers in Bermuda and Mauritius.
Mikir Shah, chief executive officer, Africa Specialty Risks, said “Since its launch in 2020, ASR has enjoyed a significant growth trajectory and this new partnership will help us realise our ambition to be the go-to reinsurer for developing markets.
ASR has doubled its premium base every year since inception, de-risked more than US$60 billion in risks in more than 90 countries in developing markets, and provides policies in all 54 African countries, all of the Middle East, select CIS states, the Indian subcontinent and Southeast Asia. The group is forecast to write approximately US$0.5 billion in gross written premiums (GWP) in 2026.
ASR primarily writes facultative reinsurance across property, casualty and specialty classes, as well as direct insurance, especially political risk and trade credit. It can access risks both on the ground in-country and in global wholesale markets. It also writes treaty reinsurance and provides parametric and captive solutions for corporate clients.
COMMENTS