Old Mutual is in the process of selling its Tanzania unit to a minority shareholder, a move that is currently pending regulatory approval. This decision stems from a comprehensive strategic review conducted to align the businesses with the broader immediate-to-long-term objectives of the Old Mutual Group.
Old Mutual Holdings CEO, Arthur Oginga, stated: “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.”
Strategic Ventures, an existing minority shareholder in the Tanzania unit, is involved in this transaction as part of the ongoing strategic realignment. The sale represents a key element of Old Mutual Group’s strategic vision, emphasizing a focused and streamlined business approach.
“Over the last two years, we adopted a phased approach in rebranding our businesses in the region to Old Mutual to leverage the heritage of our brand and entrench Old Mutual in East Africa. In the coming year, this exercise will continue, and we will strengthen our investment to grow our corporate and retail propositions and position the business as a leading integrated financial service provider. We would like to thank the people of Tanzania for embracing UAP Insurance and the Old Mutual group so warmly over the years. We are incredibly proud of the business we have been able to build in the country with the commitment of our local teams.” Oginga added.
Despite the divestiture from its Tanzania unit, Old Mutual remains committed to the African market. The pan-African insurer plans to collaborate with local partners in Tanzania to continue providing medical insurance products and services, leveraging its Kenyan unit for this purpose.
Assuring policyholders and stakeholders, UAP Insurance Tanzania, under the Old Mutual Group, anticipates minimal impact on existing policies.
The company affirms its dedication to maintaining strong relationships with customers and stakeholders in Tanzania. UAP Insurance Tanzania also expresses its commitment to collaborating with the incoming owners to facilitate a seamless transition, ensuring continuity and excellence in service delivery.
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