LeapFrog is a Profit with Purpose investor in businesses that provide insurance and other critical financial tools to a low income or financially excluded consumer class across Africa and Asia. The central premise of the Profit with Purpose model is that there does not need to be a trade-off between financial return and social impact. In its first and second funds, LeapFrog has defined its Profit with Purpose objective as achieving returns in the top-quartile of private equity funds (“profit”), while reaching a combined 50 million low income or financially excluded people in Africa and Asia with insurance and related financial tools such as savings and pensions (“purpose”).
LeapFrog tracks and drives Profit with Purpose performance through its in-house measurement framework, FIIRM. FIIRM (Financial, Impact, Innovation and Risk Management) is an integrated measurement framework tailored to financial services, incorporating an integrated matrix of financial and operational KPIs, and governance indices benchmarked to global best practice standards. LeapFrog uses the insurance metrics of IRIS to track both financial and social outcomes. For instance, claims payment days captures value to the consumer as well as company efficiency; and renewal ratios reflect customer value and retention.
Other Impact Measurement Tools
LeapFrog is a founding member of the GIIN Investors' Council, a subscriber to the Global Impact Investing Rating System (GIIRS), and a signatory to the Principles for Responsible Investment (PRI) and the Principles for Investors in Inclusive Finance (PIIF). LeapFrog's Associate Director of Impact also sits on the Steering Committee for the PIIF.