Old Mutual Holdings Explained

Old Mutual Holdings Plc
Type:Public company: OTC[1]
Industry:Insurance, financial services
Location:UAP Old Mutual Tower
Upper Hill Road
Nairobi, Kenya
Key People:Arthur Oginga
(CEO), Joseph B. Wanjui (Chairman)
Products:Life and health insurance, investment management, Investment advisory, brokerage, real estate investment trusts
Revenue: KSh 16.8 billion (2015)
Profit: KSh 890 million (2015)
Assets: KSh 48.7 billion (2015)

Old Mutual Holdings Plc, Formally known as UAP Holdings Limited, is an investment, retirement, and insurance group that operates mainly in Eastern Africa. UAP Holdings is one of the leading insurance and financial services groups in eastern Africa with a network of branches and operational subsidiaries spread across the greater eastern and central Africa regions.

The group's headquarters are located in Nairobi, Kenya, with subsidiaries in Kenya, Uganda, South Sudan, Rwanda, Tanzania, the Democratic Republic of Congo, and Mauritius. The Mauritius units are holding companies for the non-Kenyan operations. The flagship company of the group is UAP Insurance Kenya.[2]

History

Origins

The Group's origins in Kenya date back to the 1920s when Provincial Insurance Company of East Africa was incorporated as a subsidiary of Provincial Insurance Company, an insurance group based in London, United Kingdom. The 1994 merger of (UAP) of France and Provincial of the UK led to the formation of the UAP Insurance Company of Kenya. In 1996, the firm became part of Axa when Axa acquired UAP in France. Axa divested its shareholding in 2000 and the firm became a wholly owned Kenyan company.[3]

UAP Holdings expanded to Uganda in 2005, to South Sudan in 2006, to Rwanda and the Democratic Republic of the Congo in 2011, and to Tanzania in 2013. All entries other than Tanzania were greenfield investments. The group entered Tanzania through the acquisition of Century Insurance Company Limited and re-branded it to UAP Century Insurance Company Limited.[4] In total, UAP has sixteen businesses operating in the region.[5]

Old Mutual

On 8 January 2015, Centum and Chris Kirubi announced that they had entered into an agreement with Old Mutual for the sale of their 13.75 per cent and 9.58 per cent stake in UAP Holdings, respectively, to the London Stock Exchange-listed financial giant in a deal valued at over KSh 7 billion.[6] Once complete, Old Mutual will hold 23.33 per cent of UAP Holdings-issued shares and will act as a strategic investor to the group.[7] On 27 January 2015, Kenyan print media reported that Old Mutual had acquired the shares in UAP Holdings previously owned by Abraaj, Africinvest, and Swedfund, amounting to 37.33 per cent of total shareholding, for US$155.5 million (KSh 14.2 billion), thereby raising Old Mutual's ownership in UAP Holdings to 60.66 per cent.[8]

Merger into one company

In June 2015, shareholders of UAP Holdings agreed to merge with the parent company's other businesses in Kenya, to create a single entity that is referred to as UAP-Old Mutual Group. The combined company is expected to list its shares on the Nairobi Securities Exchange.[9] In June 2015, Peter Mwangi was appointed chief executive officer of the UAP-Old Mutual Group.[10] In April 2020, Arthur Oginga took over as CEO. Joe B. Wanjui, the former chairman of UAP Holdings, will assume the role of chairman of the new UAP Old Mutual Group.[11] [12]

Subsidiaries and associated companies

The companies that comprise the Old Mutual Holdings include, but are not limited, to the following:[13] [14]

  1. UAP Insurance Company Limited – Nairobi, Kenya – 100% Shareholding – The flagship company of the group. Offering general insurance.
  2. UAP Life Assurance Limited – Nairobi, Kenya – 100% shareholding – Offering life insurance.
  3. UAP Insurance Uganda Limited – Kampala, Uganda – 53% shareholding – Offering general insurance.
  4. UAP Life Assurance Uganda Limited – Kampala, Uganda – 53% shareholding – Offering life insurance.[15]
  5. UAP Insurance South Sudan Limited – Juba, South Sudan – 100% shareholding – Offering general and life Insurance.
  6. UAP Financial Services Kenya Limited – Nairobi, Kenya – 100% shareholding – Offering financial services, investment management, Investment advisory, and brokerage services.
  7. UAP Financial Services Uganda Limited – Kampala, Uganda – 89% shareholding – Offering financial services, investment management, advisory and brokerage services.
  8. UAP Investments – Nairobi, Kenya – 100% shareholding – Offering unit trusts and pension services.
  9. UAP Properties Uganda Limited – Kampala, Uganda – 79% shareholding – real estate.
  10. UAP Properties Kenya Limited – Nairobi, Kenya – 100% shareholding – real estate.
  11. UAP Properties South Sudan Limited – Juba, South Sudan – 70% shareholding – real estate.
  12. UAP Brokers – Kinshasa, Democratic Republic of Congo – Offering brokerage services.
  13. Union Life Rwanda Ltd – Kigali, Rwanda – 100% shareholding – Offering life insurance.
  14. Union Insurance Rwanda Ltd – Kigali, Rwanda – 100% shareholding – Offering general insurance.
  15. UAP Century Insurance Company Limited – Dar es Salaam, Tanzania, – 60% shareholding – Offering general and life insurance.
  16. UAP Africa Limited – Port Louis, Mauritius – 100% shareholding – Holding company for insurance businesses.
  17. UAP Investments – Port Louis, Mauritius – 100% shareholding – Holding company for advisory financial service businesses.
  18. UAP Properties – Port Louis, Mauritius – 100% shareholding – Holding company for real estate businesses.
  19. UAP Global Services – Port Louis, Mauritius – 100% shareholding – Dormant.
  20. UAP Credit Services – Port Louis, Mauritius – 100% shareholding – Dormant.

Ownership

The shares of Old Mutual Holdings are traded over the counter at Dyer & Blair Investment Bank pending future listing on the Nairobi Securities Exchange.[16] the shareholding of Old Mutual Holdings is expected to look as depicted in the table below:[17]

UAP Holdings Stock Ownership
Rank Name of OwnerPer centage Ownership
1Old Mutual East Africa Group1 of Kenya43.34
2Old Mutual Life Assurance Company (SA) Ltd123.33
3Bawan Limited20.46
4About 990 Other Local & International Investors[18] 12.87
Total100.00

1 - These are subsidiaries of Old Mutual of South Africa. This gives Old Mutual 66.67% control of UAP Holdings.[17]

Building

See main article: article and UAP Tower. UAP Holding opened UAP Old Mutual Tower, a 33-storey office complex in Nairobi's Upper Hill district.[19] UAP Tower is set to becoming the tallest structure in eastern and central Africa upon its completion in 2015.[20]

See also

Notes and References

  1. http://www.the-star.co.ke/news/article-102294/uap-new-shares-start-trade-over-counter UAP new shares start trade over the counter
  2. Web site: UAP » Subsidiaries . 31 December 2014 . UAP Holdings.
  3. Web site: About UAP: History . 2014 . 31 December 2014 . UAP Holdings (UAPH) . UAPH.
  4. Web site: UAPH . UAP Enters Tanzania Market . 6 June 2006 . 31 December 2014 . UAP Holdings (UAPH).
  5. Web site: UAPH . UAP Holdings 2013 Annual Review . PDF . 31 December 2013 . 31 December 2014 . UAP Holdings (UAPH).
  6. Web site: 9 January 2015 . Kirubi earns Sh2.8 billion from sale of UAP Holdings stake . 9 January 2015 . . Nairobi . Juma . Victor.
  7. Web site: Sale of Shares in UAP Holdings Limited by Centum Investment Company Limited and a Related Party . 8 January 2015 . 9 January 2015. Centum Investment Company Limited.
  8. Web site: Old Mutual raises stake in UAP after Sh14bn buyout . 27 January 2015 . 27 January 2015 . Victor . Juma . Business Daily Africa (Nairobi).
  9. Web site: 1 July 2015 . UAP Holdings, Old Mutual merger firm to list on NSE . . Nairobi . 22 June 2015 . John . Gachiri.
  10. Web site: Juma . Victor . Former NSE chief Mwangi to head UAP-Old Mutual. 1 July 2015 . 30 June 2015 . . Nairobi .
  11. Web site: Victor . Juma . 3 July 2015 . Nairobi . Old Mutual snub returns to haunt UAP chief executive . . 3 July 2015.
  12. News: UAP Life loss eats into Old Mutual capital injection . November 19, 2015 . Business Daily Africa.
  13. Web site: UAP Holdings Limited 2012 Annual Report . 31 December 2012 . 31 December 2014 . UAP Holdings Limited . 94.
  14. Web site: UAP Holdings Limited - Abridged Prospectus for Public Offer . 2012-11-07 . 31 December 2014 . UAP Holdings Limited . 6.
  15. Web site: List of Licensed Insurance Companies In Uganda . 26 January 2015 . January 2015 . IRAU . Insurance Regulatory Authority of Uganda (IRAU) . 28 January 2015 . https://web.archive.org/web/20150128055047/http://www.ira.go.ug/insurers.html . dead .
  16. Web site: Gichane . Charles . UAP begins trading of new shares . 9 January 2013 . 31 December 2014 . 98.4 Capital FM.
  17. Web site: Wanjui, Muguiyi to pocket Sh3.1bn in UAP share sale . 23 August 2018 . 25 August 2018 . . Munda . Constant . Nairobi.
  18. Web site: UAP, Old Mutual agree on merger ahead of listing . Gachiri . John . 22 June 2015 . 1 July 2015. Nairobi . Business Daily Africa.
  19. Web site: About UAP Tower . 26 June 2014 . 2 September 2015 . UAP Holdings.
  20. Web site: Construction Kenya . 2 September 2015. UAP Tower soars into Nairobi's skyline . 26 June 2014 . Andeso . Albert.

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