Old Mutual is set to offer critical illness cover to clients of fund administrator Zamara. FILE PHOTO | NMG
South Africa’s financial services firm Old Mutual is set to acquire a significant stake in UAP Old Mutual Life Assurance Uganda Limited by injecting funds that will contribute to the company’s compliance with capital requirements.
The transaction will dilute the stakes held by existing shareholders including Nairobi-based UAP Holdings which had a 53 percent interest in the Ugandan business. UAP is majority-owned by Old Mutual which will now help the Kenyan multinational recapitalise the Ugandan subsidiary.
The proposed transaction has been disclosed by UAP in its latest annual report for the year ended December 2021.
“Capital injection and on-boarding of Old Mutual Africa Holding Limited (OMAHL) as a significant shareholder was approved by Insurance Regulatory Authority of Uganda. Minority participation in the capital call has been availed to ensure the protection of all shareholders even as the Group moves to capitalize the company,” UAP said of the Ugandan unit’s recapitalization.
“The final capital structure and shareholding in UAP Old Mutual Life Uganda Limited will be published once all regulatory and statutory filings are completed.”
The life insurer fell short of its solvency margins by Sh512.4 million in the year ended December 2021.
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