South Africa originated financial services giant Old Mutual Group has bolstered its presence in the Nigerian market with the acquisition of short term insurance business Oceanic General Insurance.
The moves can be seen as a part of a broader movement from the south to claim a stake in the emerging consumer services market within the sub-Saharan region.
Old Mutual announced yesterday its latest Nigerian deal was approved by all relevant legal and regulatory authorities in Nigeria and South Africa. The group said the transaction “forms part of the Old Mutual Group strategy to expand its product offering to the Nigerian market.”
Old Mutual Emerging Markets CE Ralph Mupita said “We are delighted to have reached this milestone through our acquisition of the Oceanic General Insurance business and we are excited about the growth prospects in this particular market. In particular, we are proud about the unique value proposition that we have created for our Nigerian customers – they now have a one-stop insurance solution where they can choose from a suite of long-term and general insurance product offerings.”
Johannes !Gawaxab, MD of Old Mutual Africa added, “I am excited that this acquisition offers us a great opportunity to enhance the Africa expansion. Oceanic General Insurance business affords us an excellent platform to better understand our customers, offer them innovative short-term products, and deliver value to both our customers and shareholders”.
The transaction comes after Old Mutual acquired a majority stake in the Oceanic Life insurance company, from Ecobank in Nigeria.
The group said “As with the life business, the Property & Casualty business (i.e. short-term insurance) in Nigeria will be renamed and shall trade as Old Mutual Nigeria once the name change process and registration is concluded with NAICOM (The Regulator).”