The Board of Directors of Old Mutual has announced the planned run-off of the insurance operations of UAP Insurance South Sudan Limited (UAPISS).
In a notice signed by the Group Company Secretary and Legal Counsel, Nannette Miingi, the Board stated UAPISS will cease writing new insurance policies and gradually wind down its existing insurance activities.
“The Board of Directors of the Company hereby notifies its shareholders and the general public that its subsidiary, UAPISS, a company incorporated and duly licensed to undertake insurance business in South Sudan, will stop writing new business and policy renewals with effect from 3 July 2025,” the notice read.
The decision, according to Old Mutual, follows a strategic review of the business and its operating environment.
The Board said UAPISS will continue servicing all existing policies and honouring its obligations to policyholders during this period.
“UAPISS remains solvent and will continue to meet all valid claims and policyholders’ liabilities during the run-off period in compliance with the prevailing laws and relevant regulatory oversight,” it added.
Furthermore, the Board stated that UAPISS remains committed to upholding the highest governance standards and fulfilling all regulatory requirements throughout the run-off period.
Old Mutual Sells Tanzanian Subsidiary
This comes after Old Mutual Holdings Plc sold its Tanzanian subsidiary, UAP Insurance Tanzania, to Strategic Ventures Company Ltd for Ksh73.5 million in August 2024.
Old Mutual’s annual general meeting approved the sale despite the price being significantly below the unit’s net asset value.
The company explained that the decision was driven by UAP Insurance Tanzania’s underperformance and its failure to achieve expected returns on capital.
Old Mutual Holdings Plc agreed in January 2024 to sell its 60% stake in UAP Insurance Tanzania Ltd.
Also Read: Old Mutual Kenya Profit Rises by 85% to Ksh2.59 Billion
The shares, comprising 137,400 ordinary shares and 100 per cent of the preference shares, were initially owned by UAP Africa Ltd, a subsidiary of Old Mutual Holdings Plc.
In 2015, Old Mutual Holdings Ltd gained effective control of UAP Holdings Ltd by acquiring 37.33 percent of its issued ordinary shares from AfricInvest Fund II Ltd, AfricInvest Financial Sector Fund, Aureos Africa Fund LLC, and Swedfund International Aktiebolag.
Old Mutual Holdings and Old Mutual Life Assurance Company (South Africa) Ltd jointly held 60.66% of UAP Holdings issued ordinary shares.
Also Read: Kenya’s Private Sector Drops to Slowest Level in 2025
Court Order
However, a High Court in Nairobi issued orders stopping the current management of Old Mutual PLC from selling its Tanzanian subsidiary.
Joel Kamau Kibe, a shareholder in the insurance company, filed a petition challenging the decision.
Kibe said that the Capital Markets Authority (CMA) listed Old Mutual after a public offer in November 2012.
He also argued that the minority shareholders (including himself) have been excluded from the decision-making process and management of the company.
Follow our WhatsApp Channel and X Account for real-time news updates.
