LeapFrog Strategic Africa Investments (LSAI) has agreed to sell its 24 per cent stake in ICEA Lion Insurance Holdings, marking an exit from the Kenyan insurer as the fund reallocates capital to higher-return opportunities.
LSAI is a $350 million (Sh45.5 billion) separate managed fund established in 2016 by LeapFrog Investments and US-based financial services group Prudential Financial Inc. (PFI).
The fund acquired the 24 per cent stake in ICEA Lion in 2020 through East Africa Holdings Limited. The deal was its second investment, following an earlier investment in Enterprise Group Limited of Ghana in August 2017.
Prudential Financial disclosed the deal to investors:
“In January 2026, an agreement was entered into to sell the company’s 24% equity interest (through a private equity limited partnership managed by LeapFrog Investments) in ICEA Lion Insurance Holdings, Ltd., a Kenya-based insurer and asset manager. The closing of this transaction is subject to regulatory approvals and customary closing conditions.”
The stake, held through East Africa Holdings Limited, was carried at a fair value of $142 million (Sh18.2 billion) in the fund’s books as at December 31, 2024.
Prudential Financial told investors the exit is part of a broader push to redeploy capital into higher-return opportunities:
“Exited PGIM Taiwan in 3Q25 and our insurance business in Kenya in 1Q26 as part of ongoing evaluation of capital allocation towards higher return opportunities.”
ICEA Lion Insurance Holdings Limited, which provides life and general insurance as well as asset and fund management through its principal subsidiaries, paid the fund $2.14 million (Sh276 million) in dividends last year.
This came despite a sharp decline in earnings, with ICEA Lion Insurance Holdings reporting a 68% drop in net profit to $4.38 million (Sh565 million) for the year ended December 31, 2024.
ICEA Lion’s subsidiaries, however, posted strong earnings growth in the year ended December 31, 2024:
- ICEA Lion General Insurance Limited posted a 36 per cent jump in profit to Sh1.1 billion.
- ICEA Lion Life Assurance grew profit by 26 per cent to Sh2.8 billion.
- ICEA Lion Asset Management nearly doubled earnings, up 98 per cent to Sh318 million.
- ICEA Lion Trust Limited more than doubled profit, rising 111 per cent to Sh20 million.
