Old Mutual Holdings Plc (formerly UAP Holdings Ltd) has received regulatory approval to proceed with the next phase of merging its life insurance businesses in Kenya.

The transaction involves the transfer of the long-term life insurance business of Old Mutual Life Assurance Company Ltd (OMLAC) to Old Mutual Life Assurance Kenya Ltd (OMLAK).

The East African financial services group received shareholder and regulatory approval in the year 2021 to merge its Old Mutual Life Assurance Company Ltd and UAP Life Assurance Ltd (UAP Life) with the aim of building a more streamlined life business.

The approval cleared the way for the conversion of Old Mutual Life Assurance into a closed fund (meaning, no new policies are issued), and all new life business was subsequently written under UAP Life.

UAP Life was later renamed to OMLAK in May 2022, as part of the group’s rebranding exercise.

The group disclosed through a notice to its clients dated June 25 that it has received approval from the regulator to proceed with the next phase of the merger between OMLAC and OMLAK.“We are pleased to notify you that we have now reached the next milestone in our journey to simplify and strengthen our life assurance services. We have received further approval from the Insurance Regulatory Authority to proceed with the next phase of the merger between OMLAC and OMLAK,” said Loreen Makwanya, the managing director of OMLAC in the notice seen by The EastAfrican.

Continuity“We ... wish to advise that there shall be no change in the level or quality of services provided to you during this transition and thereafter. All existing policies with OMLAC shall continue to be valid and in force under the maintenance of OMLAK. OMLAK will continue to honour all the policy commitments that would have been performed by OMLAC,” she said.“There will be no changes to the terms, benefits or obligations under the existing policies. Additionally, all policy holders will continue to receive appropriate customer support, including claims processing services as was being provided to them before,” she added.

Old Mutual Holdings is an East African financial services group that comprises seven subsidiaries that underwrite life and non-life insurance risks in Kenya, Uganda, South Sudan and Rwanda, a stock brokering company in Uganda and two property companies in Uganda and South SudanIts life insurance business registered an improvement, with its profit before tax more than doubling to Ksh682 million ($5.28 million) in 2024 from Ksh263 million ($2.03 million) in 2023. This improvement was largely driven by higher investment income arising from fair value gains from equity investments and government securities.

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