Old Mutual Life Assurance Company limited (OMLAC) has announced plans to transfer its long-term life insurance business to Old Mutual Life Assurance Kenya Ltd (OMLAK), subject to Insurance Regulatory Authority (IRA) approval.
According to a public notice issued on July 8, under the Transfer of Businesses Act (Chapter 500, Laws of Kenya), the transfer will occur once the specific conditions outlined in a business transfer agreement between the two companies are fulfilled.
“Notice is hereby given under the Transfer of Businesses Act (Chapter 500, Laws of Kenya) that the long term life insurance business carried on by Old Mutual Life Assurance Company Ltd (Company Number C194) (Transferor”) will, subject to the fulfilment of certain conditions precedent, be transferred to Old Mutual Life Assurance Kenya Ltd (Company Number C.19223) [Transferee”) pursuant to the terms of a business transfer agreement to be entered into between the Transferor and Transferee (the “Agreement”),” read the notice in part.
If the conditions precedent to the Agreement are fulfilled, Old Mutual Life Assurance Kenya Ltd intends to acquire the assets and business of Old Mutual Life Assurance Company Ltd on the completion date to be set out in the Agreement.
OMLAK shall, from that date, carry on the business at the same premises.
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Old Mutual Life Assurance Kenya to Acquire Parent Firm’s Life Insurance Business
However, all debts and liabilities incurred by OMLAC prior to the transfer will remain with the parent company, unless expressly stated otherwise in the agreement.
“All money debts or liabilities due and owing by the Transferor in respect of the businesses of the Transferor up to the date of transfer as will be set out in the Agreement, shall be received and paid by the Transferor Save as specifically provided in the Agreement,” read the notice in part.
“The Transferee will not assume nor is it intended to assume any liabilities incurred by the Transferor with respect to its assets or business up to the date of transfer.”
If the Agreement is not completed, this notice will be void ab initio and of no effect.
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Stakeholders Given 60 Days to Review Transfer Plan or Raise Objections
Any person — including a policyholder, shareholder, employee, or director — who has reasonable grounds to believe they would be adversely affected by the proposed transfer is invited to submit written or oral representations to the IRA within sixty (60) days of the publication of this notice.
They should clearly state the reasons why they believe the implementation of the proposed transfer would negatively affect them.
They can also submit their representation in writing, along with supporting documents, to the address below within sixty (60) days from the date of this notice:
Address of the Transferor (Old Mutual Life Assurance Company Ltd):
Old Mutual Tower, 6th Floor
Upperhill Road, Upperhill
Nairobi, Kenya
Attention: Martin Karenju
Email: [email protected]
Address of the Transferee (Old Mutual Life Assurance Kenya Ltd):
Old Mutual Tower, 6th Floor
Upperhill Road, Upperhill
Nairobi, Kenya
Attention: Martin Karenju
Email: [email protected]
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