ASSETS UNDER MANAGEMENT
Nigeria is leading the African growth story; this exhilarating nation has been an outperformer even among fast-growing African markets. Nigeria has been posting 6% real GDP growth every year for the past decade, 1.2% above that of Sub-Saharan Africa. Currently, 66% of the vast Nigerian market is still underserved with vital financial services.
Today, eighty-nine per cent of working Nigerians are not yet registered for pensions. Pensions not only serve as a safety net for aging Nigerians but can also make a huge impact on the households in which these individuals live – for both children and other family members – supporting education, healthcare and other necessary services. The aim of ARM Pensions, one of the largest fund administrators in Nigeria with approximately $1.8bn in funds under management, is to build understanding and uptake of this essential service.
The company provides pensions and retirement savings accounts to three million Nigerians, of which one million are low-income or emerging consumers. Clients are served through 59 locations across all 36 states of Nigeria, with dedicated mobile offices reaching consumers in the most remote areas, and innovative digital channels ensuring swift access to accounts and assistance. The LeapFrog, ARM Pensions partnership began in June 2018. The investment is a continuation of LeapFrog’s focus on pensions in the West African market, following its successful exit from Ghana’s Petra Trust to Capital Alliance Private Equity IV Limited, a fund managed by African Capital Alliance, a pan-African investment firm in February 2018. LeapFrog worked closely with the Petra Trust team to grow the business to become the largest independent pensions provider in Ghana, achieving 76% GAGR over the period of LeapFrog’s investment. The investment also builds on LeapFrog’s partnership with ARM Group following a 2012 co-investment into what is now ARM Life, a high-growth insurer.
Karima Ola, Partner LeapFrog Investments, commented: “ARM Pensions is a well-established first-class pension fund administrator with an impressive track-record of both profitability and growth. Our team brings significant operational skills to bear on the development of ARM Pensions’ market presence. We have identified valuable opportunities to support the company’s digital strategy, to facilitate partnerships and to increase the firm’s brand awareness in ways that further strengthen customer retention and acquisition. LeapFrog sees the partnership with ARM Pensions, and the shared growth agenda, as capable of delivering large and measurable impact for Nigeria’s people.”
Founded in 2005, ARM Pensions is one of the first seven Pension Fund Administrators (PFA) to be granted a license by the National Pension Commission. The company is majority owned by Asset and Resource Management (ARM) Group, Nigeria’s largest and most respected non-bank financial institution, and the country’s largest independent asset manager.
The Asset and Resource Management Company (ARM) is the leading non-bank financial institution in Nigeria, and the largest independent asset manager. ARM partnered with LeapFrog to expand into life insurance to complement its pensions and investment management offerings. ARM Life offers a wide range of investment and savings, risk and annuity products to Nigeria’s mushrooming employee base and mass-market.
LeapFrog’s team brings significant actuarial and operational skills to bear on the development of ARMLife’s retail presence, helping diversify and grow the business. LeapFrog has worked with ARMLife to bring in new leadership talent and support across management training, as well as to improve governance, financial reporting actuarial and technical services and human capital management.
Leapfrog invested in ARM Pensions as part of our Financial Services portfolio, alongside the following companies who a delivering profit with purpose: