Old Mutual and UAP in historic merger
A new Integrated Customer Care center, which amalgamates UAP insurance, Old Mutual and Faulu Microfinance Bank has opened its doors in Nairobi, ushering a new dawn to a complete merger between the two insurance providers and the microfinance institution.
The one stop shop will be offering financial solutions, access to insurance services, investment and securities brokerage services under one roof.
Old Mutual acquired a majority stake of 60.7 per cent in UAP for Sh25.6 billion in July 2015, but the two insurance firms have continued to operate similar subsidiaries in life insurance and asset management as they work out the complex merger process.
Old Mutual’s subsidiary Faulu Kenya comes on board in this merger to offer financial services to the customers of the UAP Old Mutual group, which intends to consolidate all its branches country wide by 2018.
The Group Chief Executive Officer Peter Mwangi says, the merger offers Sim less financial services across banking, life assurance, general insurance, health insurance, asset management, unit trust, property investment, and stock brokerage to their customers.
The group gives its commitment to Africa despite the challenging political and economic conditions, especially in South Sudan, where business has resumed normally after recent clashes, and the group hopes that they can retain its market and also venture into other African markets.
“The South Sudan business accounts for about 9% of gross premium in the insurance side, so it’s a substantial and profitable business, we don’t expect the current situation to have a very advanced impact on business,” said Mwangi.
By Ephraim Maina