adminOld Mutual plans to merge its Kenyan insurance business with its newly acquired financial services company UAP, which, reports Business Day, could see the SA- and London-listed insurer raising its position in the Kenyan life insurance business from number eight to four.
This comes after Old Mutual announced it had invested about R1.8bn in UAP, buying 37,3 percent more to raise its stake to 60,7 percent. At the start of this month, Old Mutual bought a 23,3 percent stake for about R1bn. Old Mutual has invested about $253m in UAP.
The deal is pending regulatory approval. Old Mutual Emerging Markets CEO Ralph Mupita said: ‘‘We will not run two businesses. We will be looking to run one integrated business . . .’’
Before the acquisition, Old Mutual had a small business in Kenya offering insurance, investments and financial planning. Old Mutual said UAP was the third-largest general insurer in Kenya and the second-largest health insurance business. It is the second-largest general and health insurance business in Uganda.
Mupita said: ‘‘Overall, we expect the suite of businesses to collaborate more closely to generate value to customers.
“Our intention is to focus on revenue-generating activities and leveraging capabilities in the wider Old Mutual Emerging Markets group.’’ – Business Day
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