Old Mutual Holdings PLC has announced plans to cease all new insurance business and policy renewals by its South Sudanese subsidiary, UAP Insurance South Sudan Limited (UAPISS), effective 3 July 2025. The move comes following a strategic review of the company’s operations in the East African nation.
The decision, disclosed in a corporate public announcement dated 3 July 2025 and signed by Nannette Miingi, Group Company Secretary and Legal Counsel, signals a shift in Old Mutual’s regional strategy amid evolving market dynamics and operating challenges.
While UAPISS will halt all new business activities, the insurer assured policyholders and stakeholders that it remains solvent and fully committed to honouring all existing policies. During the run-off period, which spans until all current contracts naturally expire, UAP Insurance South Sudan will continue to meet valid claims and service obligations in accordance with South Sudanese regulatory requirements.
The decision follows what the group describes as a “strategic review” of UAPISS’s operations and its surrounding business environment. Although Old Mutual has not cited any specific reasons for the closure, industry analysts point to persistent economic volatility, low insurance penetration, and political uncertainty in South Sudan as key headwinds for financial service providers.
“This move underscores Old Mutual’s broader realignment strategy in the region, as it focuses resources on markets with greater stability and return potential,” said an insurance sector analyst in Nairobi.
The Capital Markets Authority has approved the disclosure under the Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulations, 2023, ensuring transparency for investors and compliance with statutory obligations.
Despite the cessation of new policy issuance, UAP Insurance South Sudan emphasized that its commitment to its customers remains unwavering.
“UAPISS will continue to service all existing policies and honour its obligations to policyholders,” the notice read. “The company remains solvent and will continue to meet all valid claims and policyholders’ liabilities during the run-off period.”
This guarantees policyholders coverage throughout the term of their contracts, avoiding abrupt service disruptions that often follow market exits by financial firms in fragile states.
UAPISS stressed that it remains compliant with prevailing laws and committed to the highest standards of governance. The firm’s adherence to regulation and solvency criteria is expected to preserve trust with clients and regulatory bodies during the exit period.
While market exits can trigger uncertainty, UAPISS’s run-off strategy appears to be designed for minimal disruption, with a phased wind-down over the coming year.
The announcement is expected to send ripples through the underdeveloped South Sudanese insurance sector, where few players operate due to persistent macroeconomic challenges. UAPISS was among the earliest entrants in the market, having secured local licensing to offer general and life insurance services.
“This is a blow to an already thin insurance market. The withdrawal of a major player like UAP suggests a need for stronger economic reforms and regulatory support,” said John Lado, a financial consultant based in Juba.
With a largely untapped population and minimal insurance uptake, South Sudan remains one of the least insured countries in Africa. The UAPISS exit could further deter foreign investment in the sector unless measures are taken to stabilise the operating environment.
Old Mutual, a pan-African financial services group with interests in banking, insurance, asset management and investments, has in recent years restructured its presence across the continent. It has divested from non-core markets while deepening its footprint in key economies like Kenya, Nigeria, and South Africa.
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