Old Mutual acquires a stake in financial services group UAP

Insurer Old Mutual (OML) said on Friday, 9 January, it has acquired a 23.3% stake in UAP‚ an east and central African financial services company‚ for R1.1bn in cash.

The deal deepens Old Mutual's presence in East Africa where it operates Faulu‚ the second-largest deposit-taking microfinance company in the region that was acquired in 2013. The deal also forms part of Old Mutual's plans to expand its footprint in Africa's growth markets.

UAP was the second-largest property and casualty‚ and health insurance company and the third-largest life insurance business in Uganda‚ Old Mutual said in a statement. In Kenya‚ UAP had the third-largest property and casualty market share and the second-largest health insurance business. It also had a property portfolio and a life insurance business‚ Old Mutual said.

"This investment is another significant step in delivering the group's aim of becoming an African financial services champion. UAP is an ideal and complementary fit to our existing Kenyan businesses and we look forward to deepening and broadening our relationship in the future‚" Old Mutual emerging markets CEO Ralph Mupita said.

Source: BDpro