Our East African operations will not be affected – OLD Mutual CEO

The Kenyan subsidiary under the financial services group, Old Mutual, has said its operations will not be affected after it is split into four constituent businesses.

Old Mutual Kenya Group CEO Peter Mwangi said their operations and service to their customers and partners will continue.

“Our day today running of our business remains unchanged and our UAP Old Mutual Group policies, savings, investments and business partnerships are not impacted.”

“UAP Old Mutual Group remains financially strong, well-capitalized and well governed,” he adds.

The group will be split into:

Old Mutual Emerging Markets:  A provider of financial services, predominantly, in sub-Saharan Africa. It offers life and general insurance as well as assets management and banking services. The business current has market leading positions in South Africa, Namibia and Zimbabwe, contributing 95% of total profits. Profits have grown at a constant rate of 12.5% over the last three years with a return on equity of 23%.

Nedbank :  Among South Africa’s four largest banks with operations in six other South and East African countries. In West and Central Africa it holds a 20% stake in Ecobank which has 2,350 branches across 39 countries.

It is intended that Old Mutual Emerging Markets will retain a stake in Nedbank to facilitate product distribution.

Old Mutual Wealth:  Focused on the upper and middle sections of the UK wealth management market. Continuing operations have delivered compound annual growth rates of 25% over the last three years.

OM Asset Management:  An institutionally focused asset manager listed on the NYSE, in which Old Mutual Group continues to hold a 65.8% stake. Funds under management stand at $212.4bn, down 4% on last year as a result of market movements and $5.1 of net outflows.

Group Chief Executive, Bruce Hemphill says the strategy will allow each business to have simpler access to capital markets to fund its growth more easily and be valued more appropriately, with more straight forward regulatory arrangements.

In Kenya, UAP has the third largest Property and Casualty market share; the second largest health insurance business; a substantial property investment portfolio and a fast growing life insurance business. It has established and diverse distribution networks including via brokers; an agency force; direct sales; bancassurance; digital; and via supermarkets.

In Uganda, it has the second largest P&C and health insurance businesses, and the third largest life business. It also has P&C businesses in Rwanda, Tanzania and South Sudan, and a brokerage business in the Democratic Republic of the Congo.

Old Mutual acquired the East and Central African financial Services Company after it acquired majority stake in UAP the year 2015.