MANILA, philippines--A new investment fund has earmarked $25 million (about P1.1 billion) for the Philippines and is particularly interested in the country?s microinsurance industry.

Leapfrog Investments?with offices in Sydney, Washington D.C., and Johannesburg?was put up last year to invest in microinsurance, which is designed for low-income consumers who can only afford to pay small premiums.

Stephane Chatonsky, a principal for Leapfrog, said in a briefing that the fund has so far generated $110 million in contributions from investors that believe in the potential of microinsurance to alleviate poverty.

Leapfrog?s biggest shareholders include International Finance Corp. of the World Bank, which contributed $20 million; German Development Bank, $25 million; and Soros Economic Development Fund, $7 million.

?Microinsurance is a tool for poverty alleviation,? Chatonsky said.

He said the Philippines was selected as an investment site because of the potential growth of the microinsurance industry in the country.

The company executive said that with an estimated 70 percent of the Philippine population considered low-income earners, the Philippines is a good market for microinsurance.

He also said that the regulatory environment in the Philippines was favorable for microinsurance investors, noting the recent passage of a law reducing the tax rates on insurance.

Chatonsky also said Leapfrog was considering equity investments in existing microinsurance companies; insurance companies that are not yet engaged in microinsurance but are willing to expand operations to the micro sector; and financial companies willing to distribute microinsurance products.