Uganda: UAP-Old Mutual Merger Good for Business, Says Wavamunno

allAfrica

By Jonathan Adengo

Kampala — The UAP Insurance and Old Mutual merger will offer customers new enhanced range of professional and improved quality services, a top executive has said.

Speaking at a press briefing in Kampala yesterday, Dr Joe Wanjui, the UAP-Old Mutual Group chairman, said the merger will improve the quality of financial services and also further boost insurance penetration in East Africa.

As a result of the merger, the new UAP - Old Mutual group has also streamlined their operations under four different subsidiaries of insurance, investment management, properties, banking and securities brokerage.

Merging process

Old Mutual, an Anglo South African financial services company, acquired 60.7 per cent majority stake in UAP Insurance earlier in the year, deepening its presence in the financial services sector. Old Mutual increased its stake in the insurance firm with a further acquisition of 37.3 per cent of UAP'S existing share capital.

Commenting on the merger, Mr Gordon Wavamunno, the chairman of UAP Insurance Uganda, said the combined UAP-Old Mutual brings a wider focus for the business and financial leverage to drive investments in the Uganda financial services market supported by global expertise.

"Financial penetration in Uganda is still very low, but with the combined business, the UAP - Old Mutual group will broaden the products offering and accessibility for our customers and business partners," he said.

Mr Peter Mwangi, the newly appointed Group chief executive officer, said the growth and expansion potential of the merger is huge and there is no doubt that together, the group is greater than the sum of their parts.

The new merger will allow UAP to benefit from the 17.5 million customers and total asset base of over $500 trillion .

Old mutual

Old Mutual, an Anglo South African financial services company founded in 1865, began in Cape Town in 1845 as South Africa's first mutual life insurance company, offering financial security in uncertain times.

It has over 170 years of experience in the market and has foot print North of the Limpopo and South of the Sahara.

It has more than 16 million customers.