Corporates Kenya

Old Mutual announces sale of full stake in UAP Insurance Tanzania

Old Mutual Limited today announced the sale of its full stake in UAP Insurance Tanzania, its short-term insurance business to a group within its current Minority Shareholding, pending regulatory approval.This decision follows a thorough strategic review of the businesses relative to the immediate-to-long-term objectives of the broader Old Mutual Group.This decision follows a thorough strategic review of the businesses relative to the immediate-to-long-term objectives of the broader Old Mutual Group.This decision follows a thorough strategic review of the businesses relative to the immediate-to-long-term objectives of the broader Old Mutual Group.Old Mutual Holdings CEO, Arthur Oginga commented: “Since acquiring UAP Insurance Tanzania in 2015, it has been our ambition to scale and grow in a way that would position us as one of the leading financial services providers in the market. Along the way, we made strategic investments to ensure that our business remained on the right footing and was able to compete successfully. However, the business in Tanzania has faced challenges in meeting expected return on capital for various operational and environmental reasons. We have evaluated various options to attaining market leadership in Tanzania, however, we no longer see a clear path to achieving this strategic objective. We believe that the various options require substantial further investment and carry significant risk to attaining the objectives of market leadership and real returns in the medium term. As a result, we have decided to sell our stake in our short-term insurance business to Strategic Ventures Company Limited, a grouping from the existing minority shareholders of UAP Insurance Tanzania Limited.”

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