Old Mutual Nigeria today announced the sale of 100% of its stake in the General Insurance and Life businesses to the Emple Group. The Emple Group is an investment company managed by experienced Nigerian investors with a proven track record of delivering best-in-class transaction execution across Sub-Saharan Africa as well as growing its investment in the Nigerian market. This is pending regulatory approval.
This decision follows a thorough strategic review of the businesses which weighed up the immediate-to long-term prospects for both the in-country asset and the broader Old Mutual Group.
Old Mutual West Africa Group CEO, Samuel Ogbu commented: “Since establishing a presence in Nigeria in 2013, it has been our ambition to scale and grow the business in a way that would position Old Mutual as a leading financial services provider in the market. Along the way, Old Mutual made strategic investments to ensure that the Nigeria businesses remain on the right footing and were able to successfully compete. However, Old Mutual has taken the decision to sell the Nigeria General Insurance and Life businesses, with the key consideration for this transaction being the optimisation of capital management.”
Part of the agreement is an undertaking by the new investors to present a clear transition plan, which includes immediate and medium-term plans for growth, together with the existing team. This means that the transition will proceed with the existing team in place.
Old Mutual does not foresee any impacts to the policies and relationships with its customers and stakeholders in Nigeria and will be working with the Emple Group to ensure a smooth transition.
“We are in the process of communicating with our customers and key stakeholders, and the reassurance we are giving is that they can expect continued excellent service.”
Old Mutual confirmed that it would not be leaving Nigeria completely but would maintain a presence in the country through its investment arm, Africa Infrastructure Investment Managers (AIIM). “We see great potential in the infrastructure investments space. AIIM has had great success in the country to date, pursuing opportunities in the sub-region and beyond, through the team in Lagos. Old Mutual currently has significant investment interests in renewable energy, midstream gas, and the digital infrastructure sector in Nigeria through our various AIIM funds. Our view is long-term, and we continue to explore opportunities for growth,” added Ogbu.
Old Mutual said that the Group’s commitment to growing on the African continent remains firm. “We returned our operations to the African continent in 2018 because of the opportunity for growth that we saw then, and which we still see today. However, this growth needs to be sustainable, in the best interests of our stakeholders and pursued responsibly. We continually assess our efforts in every market to ensure we create value for all stakeholders.”
The transaction is still subject to regulatory approval. Old Mutual said that it would be working closely with the Emple Group to ensure a smooth transition of the plan.
Ogbu concluded: “We would like to thank the National Insurance Commission (NAICOM) and the people of Nigeria for embracing the Old Mutual brand so warmly over the years. We are incredibly proud of the business we have been able to build in the country with the commitment of our local teams, and we remain confident that this legacy will continue to grow under the custodianship of the Emple Group.”