DGAP-News: ADC African Development Corporation invests in a leading Kenyan health insurer ++ Acquisition of a 25 per cent stakeholding in Resolution Health East Africa ++ Kenyan health insurance market growing dynamically
(firmenpresse) - DGAP-News: ADC African Development Corporation GmbH&Co. KGaA / Key
word(s): Miscellaneous
ADC African Development Corporation invests in a leading Kenyan health
insurer ++ Acquisition of a 25 per cent stakeholding in Resolution
Health East Africa ++ Kenyan health insurance market growing
dynamically
13.01.2011 / 08:10
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++ ADC African Development Corporation invests in a leading Kenyan health
insurer
++ Acquisition of a 25 per cent stakeholding in Resolution Health
East Africa
++ Kenyan health insurance market growing dynamically
++ ADC's insurance division to be expanded rapidly
ADC African Development Corporation (ADC), ISIN DE000A1E8NW9, a rapidly
growing financial services group, which focuses on Sub-Saharan Africa's
(SSA) Frontier Markets, is expanding further to now also include the
insurance sector. ADC has acquired 25 per cent of the shares of Resolution
Health East Africa Ltd., (RHEAL), one of the top three health insurance
firms in Kenya. The purchase price for the 25 per cent stakeholding is EUR
1.8 million. In this transaction, ADC has also been granted extensive
supervision and co-determination rights with respect to RHEAL.
'The investment in RHEAL is ADC's first investment since its successful IPO
on the Frankfurt Stock Exchange in December 2010, supplementing its
existing investments in the areas of commercial banking and payment
transactions with the promising and dynamically growing insurance sector'
explained Olaf Meier, CFO of ADC, commenting on the transaction.
Approximately 42,000 private individuals and nearly 900 Kenyan companies
are currently utilizing RHEAL's insurance services. The company co-operates
with more than 350 medical facilities in the region. With a market share of
more than 10 per cent and annual premium income of more than (equivalent)
EUR 10 million, RHEAL is one of the three leading health insurers in Kenya.
In recent years, premium growth for the profitable company has been in
excess of 40 per cent annually, thereby even exceeding the high average
growth rate for the industry of approximately 25 per cent annually
.
The further growth potential is enormous: At present, only around 5 per
cent of the 39 million Kenyans have health insurance. Due to the
accelerating economic development of the country - International Monetary
Fund estimates for growth are at 5.8 per cent for 2011 - and a further
growth of the country's middle class possessing purchasing and investing
power, it is expected that the demand for health insurance in Kenya will
rise significantly in the future.
It is RHEAL's objective to double its market share over the next several
years and to become the leading health insurance firm in the country.
Moreover, using Kenya as a base - the country acts as a hub in the region -
an expansion into other countries will be promoted. ADC will be an active
partner in the growth of this company over the coming years. It is
therefore also conceivable that ADC will increase its current stakeholding
in RHEAL in the future. The forecasted return on the capital invested in
this shareholding is in line with ADC's overall strategy of impressive
double-digit annual percentages in financial services in SSA.
++ About ADC
ADC African Development Corporation, ISIN DE000A1E8NW9 (ticker symbol:
AZD.GR), was established in September 2007 and quickly positioned itself as
one of the leading investors for banks and insurance companies in the
above-average growth markets of Sub-Saharan Africa. The company's success
is primarily due to its local management team, which follows international
best practice principles to further develop banks and implements
conventional international processes to increase their profitability. As
the second international emerging market investor in the world, ADC was
integrated into the insurance solution offered by the Multilateral
Investment Guarantee Agency ('MIGA'), a member of the World Bank Group,
primarily due to its strong operational approach and adherence to the
highest ethical standards. This insurance offers protection against a
variety of political risks, in particular the risk of radical political
change.
End of Corporate News
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13.01.2011 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: ADC African Development Corporation GmbH&Co. KGaA
Grüneburgweg 18
60322 Frankfurt/Main
Deutschland
Phone: +49 69 719 12 80 00
Fax: +49 69 719 12 80 011
E-mail: info(at)african-development.com
Internet: www.african-development.com
ISIN: DE000A1E8NW9
WKN: A1E8NW
Listed: Freiverkehr in Berlin; Open Market (Entry Standard) in
Frankfurt
End of News DGAP News-Service
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108829 13.01.2011
Datum: 13.01.2011 - 08:10 Uhr
Sprache: Deutsch
News-ID 32989
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Kategorie:
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