Old Mutual Limited is set to divest its entire stake in UAP Insurance Tanzania, its short-term insurance business, as part of a strategic repositioning within the broader Old Mutual Group. The decision follows a thorough review of the businesses in alignment with the company’s immediate-to-long-term objectives.
CEO Arthur Oginga announced the divestment from the short-term insurance sector, emphasizing the intention to deepen Old Mutual’s presence in Tanzania’s medical insurance space through partnerships with local entities.
“We no longer see a clear path to achieving this strategic objective. 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,”Oginga stated,
Consequently, Old Mutual has chosen to sell its stake in the short-term insurance business to Strategic Ventures Company Limited, pending regulatory approval.
While divesting from short-term insurance, Old Mutual aims to collaborate with local players in Tanzania to offer products and services in the medical insurance space, leveraging its operations in Kenya. The sale is pending regulatory approval, and UAP Insurance Tanzania assured that there would be no impact on policies and relationships with customers and stakeholders. The company is committed to ensuring a smooth transition with the incoming owners.
Arthur Oginga highlighted the phased rebranding efforts undertaken over the past two years, consolidating businesses in the region under the Old Mutual brand. The ongoing exercise aims to leverage the brand’s heritage and solidify Old Mutual’s presence in East Africa. In the upcoming year, the company plans to strengthen investments, particularly in corporate and retail propositions, positioning itself as a leading integrated financial service provider.
Expressing gratitude to the people of Tanzania, Oginga acknowledged the warm embrace of UAP Insurance and the Old Mutual group over the years. Despite the sale of the short-term insurance business, Old Mutual looks forward to continued growth and meaningful contributions to the East African financial landscape.
In the context of this strategic pivot, Old Mutual Holdings Limited reported an impressive financial performance for the first half of 2023. The company posted a profit before tax of KES 200 million, marking a significant turnaround from the KES 900 million loss before tax in the same period the previous year.
This notable improvement in profitability is attributed to a 12 percent growth in revenue, reaching KES 1.8 billion, coupled with increased investment income from financial assets and investment properties.
