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  • Old Mutual sells Nigerian insurance businesses to Emple Group

    Old Mutual sells Nigerian insurance businesses to Emple Group

    • To focus on infrastructure investments

    Old Mutual Nigeria yesterday announced the sale of 100 per cent equity stake in its general insurance and life businesses-Old Mutual General and Old Mutual Life, to the Emple Group.

    The Emple Group is an investment company managed by experienced Nigerian investors with records across Sub-Saharan Africa and Nigeria.

    The transaction is still subject to regulatory approval.

    Group Chief Executive Officer, Old Mutual West Africa, Samuel Ogbu said the divestment followed 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.

    “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,” Ogbu said.

    Read Also: Old Mutual sells 100% stake in general, life insurance business

    According to  him,  part of the sale agreement was 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.

    He said Old Mutual did not foresee any impacts to the policies and relationships with its customers and stakeholders in Nigeria and would 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,” Ogbu said.

    He affirmed that Old Mutual 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,”  Ogbu said.

    He assured that Old Mutual 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,” Ogbu said.

    He expressed appreciation to 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,” Ogbu said.

  • Old Mutual sells 100% stake in general, life insurance business

    Old Mutual sells 100% stake in general, life insurance business

    Old Mutual Nigeria yesterday announced the sale of 100 per cent 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.

    In a statement in Lagos, Old Mutual West Africa Group CEO, Samuel Ogbu stated: “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.

    Read Also: Old Mutual: adopt insurance-backed savings plans

    “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,”the statement said.

  • Old Mutual rewards customers

    Old Mutual General Insurance Company, a subsidiary of Old Mutual Limited and Premium African Financial Services Group, has launched Double Awoof campaign on its Comprehensive Motor Insurance policy in furtherance of its resolve to deepen market penetration and reward its loyal customers,

    The company’s ‘Double Awoof’ loyalty programme, which began on August 27, 2019, will last till November 8, 2019. The loyalty programme rewards policyholders by slashing the cost of procuring comprehensive motor insurance cover to 2.5 per cent on vehicles and doubles the reward with an instant gift of a Total Service Station’s fuel voucher of up to N30,000.

    The Executive Head, Marketing, Old Mutual, Alero Ladipo, who made this known in a statement explained that for a vehicle owner whose car is valued at N2 million, the instant fuel voucher is N5,000 to keep the vehicle moving during the ember months.

    This, according to her, is an addition to the 25 per cent discount of the premium.

    She said: “The brand’s move to reward its growing customer base was borne out of the firm commitment to the Nigerian insurance market. We understand the importance of comprehensive car insurance to Nigerians especially during the last quarter of the year, when there is a spike in travel activities, heightened insecurity and other associated risks.

    “While we believe that it is critical for everyone to buy an insurance policy for their cars, we also consider it thoughtful to give back to policyholders who buy our Comprehensive Motor Insurance policy. So, it is really about buying a great product at a discount and getting rewarded at the same time,” she said.

  • Old Mutual highlights need for insurance coverage of critical illness

    Over 800 million people worldwide spend at least 10 per cent of their household budgets on health care, experts have said.

    It was learnt that in sub-Saharan countries like Nigeria, medical expenses are often made through out-of-pocket payments with little coming from the government or private healthcare management initiatives.

    In the case of terminal illness, many sufferers have lost their jobs and their source of income significantly affected. Based on this, families have been driven into poverty in a bid to raise money for the treatment of loved ones.

    It is against this backdrop that Old Mutual Nigeria Life Assurance Company reiterated the need for Nigerians to plan with insurance policies specially designed to provide protection from the financial burdens of terminal illnesses.

    Old Mutual Managing Director Mr. Keith Alford called on Nigerians to choose life and take up insurance as a protection against the financial burden of terminal illnesses.

    He spoke during a media parley in Lagos in commemoration of the World Health Day, themed “Universal health coverage: Everyone, Everywhere”.

    He stated that the firm, a subsidiary of Pan-African insurance giant and one of the member of the leading global financial services group, Old Mutual, celebrated the World Health Day with a commitment to insurance coverage of critical illness.

    He announced Old Mutual’s partnership with Roche, a global research-driven healthcare and pharmaceutical firm to develop an innovative insurance plan for terminal illness, tagged the “Old Mutual Critical Illness Plan.

    He disclosed that the underwriting firm also entered into a deal with Hygeia HMO to help them expand its services and coverage.

    Highlighting the importance of healthcare coverage, he stated that with the Universal Health Coverage, everyone could obtain the right  medical care they needed and in due time, without suffering financial hardship.

    He noted that the financial hardship becomes heightened in terminal illnesses, due to their prolonged costly treatment and deadly impact.

    Roche Products Limited Country Manager Dr. Ladi Hameed said Roche will deplore its over eight years’ experience on handling of critical illness in the partnership, adding that the initiative will help in early diagnosis and support.

    He noted that with the product, individuals who, suffer critical illness, would no longer seek financial help from the public.

    Old Mutual Retail Mass Market Head Kayode Odetola noted that the product provides an optional 10 per cent cash back, plus the option to renew at the end of the term.

    He identified features the product to include a minimum entry age of 18; maximum entry age of 67; ceasing age of 70; and policy term of three to 15. The maximum sum assured is N30 million and minimum sum assured is over N500,000.

  • Old Mutual launches 2-in-1 savings plan

    Old Mutual has launched its 2-in-1 Savings Plan for customers in Nigeria, especially young professionals and families.

    With a minimum monthly contribution of N5,000, customers can save up to five or 10 years to fund their financial goals.

    The plan also gives the customer the opportunity to access a part of the savings for immediate needs during the savings period, should the need arise, thereby providing financial security.

    Another critical component of the plan is the protection on the savings, so that in the event the policyholder passes away in the course of the savings plan, the assigned beneficiaries will receive the originally targeted sum as assured in the plan.

    The Executive Head, Marketing and Customer Experience, Old Mutual, Alero Ladipo, in a statement said: ”We understand that life is filled with a constant juggling of our priorities. Trying to excel in our career, expand our businesses, get another degree, start a family, raise the children, provide education for them; yet take care of our siblings and parents, all on an income is a stretch for many.

    ‘’At Old Mutual, we realise that entrenching a savings culture will help individuals realise dreams that day- to-day life tries to take away from them. We know as a business with over 170 years of wealth creation and management that smart financial planning is the answer to a future of financial security.

    “It is on the back of these insights that we enhanced the 2-in-1 Savings Plan to allow you save towards your life goals over a period of at least five years and with the added benefit of insurance protection, so that if life’s uncertainty happens in the course of saving for your future dreams, a chosen beneficiary will still receive the targeted sum. In other words, if you have set out to save for your child’s education and death unfortunately occurs, the 2-in-1 Savings Plan protects that dream from falling apart and ensure that the child gets the targeted sum”, she added.

    Old Mutual General Insurance Company and Old Mutual Nigeria Life Assurance Company are part of Old Mutual Limited which provides protection, savings, investment and lending services to 11.3 million customers in 17 countries across Africa, Asia and Latin America.

    Having acquired the majority stake in Oceanic Life Assurance Company, Old Mutual has been operating in Nigeria since March 2013. In January 2014, it also acquired a majority stake in Oceanic General Insurance Limited, thereby offering both life and general insurance solutions tailored to meet unique individual and corporate client’s needs.

  • ‘Women are better empowered with insurance’

    There is no financial plan that  empowers a woman better than an insurance policy, the Marketing and Customer Executive, Old Mutual, Mrs Alero Ladipo, has said.

    In a statement by the company, Mrs Ladipo said the company commemorates with millions across the world on the International Women’s Day (IWD), a day dedicated to celebrating the social, economic, cultural and political achievements of women globally.

    According to her, ‘’all genders are equally insured in the insurance space with same expectation in terms of compensation, which allows for a balanced society and further propels women to achieving greater goals.”

    Citing vehicle insurance for instance, Mrs Ladipo added that an insured female car-owner, who is incidentally involved in a road mishap is confident that her insurer will come through for her.

    She knows that with her insurance policy, the damages to a third party will be effectively repaired. She fears no harassment. Mothers who have dreams for their loved ones, irrespective of class or status in the society, can procure a unique savings plan that can help them realise their dreams, but also provide certain guarantees, which ensures that a beneficiary is not short-changed or prevented from reaching an educational goal. Such plans also afford them access to money in case of surprises or other emergencies, she said.

    She stated that Old Mutual is committed to promoting gender parity at all levels just as it is supportive of women in its workforce towards achieving career goals.

    She said: “The organisation in its support for women and the desire for a balanced society, launched the Old Mutual Women’s Network (OWN), a company initiative established to enhance healthy engagement amongst women and to create a mentoring and empowering work environment.

    “We must understand that women are pivotal to societal growth and are an integral part to the success of any unit. As an organisation, we have put adequate policies and processes in place to deepen equal gender participation in decision making at every leadership cadre across the Old Mutual Group. I make bold to say that Old Mutual is a fantastic place for women to work in Nigeria and across our group internationally.

    “We understand that women at all levels add extraordinary value to enterprise; are capable of making smart decisions that can propel wealth creation, hence their contribution to growth has to be in focus in setting strategies and business agenda. I believe that to promote a gender balanced society, the woman must be able to attain financial security like their male counterparts.’’

  • Old Mutual advises Nigerians to embrace calculated risks

    The management of Old Mutual General Insurance Company, a subsidiary of the Pan-African insurance giant and leading global financial services provider, has advised Nigerians to embrace insurance as means of mitigating all forms of risks in their lives and businesses.

    Its Executive Director, Technical,  Japhet Duru, in a statement said by embracing insurance, Nigerians can protect their finances in spite of the risk that abound.

    Nigerians’ perception and affinity towards insurance, he said, has remained low in spite of Nigeria’s huge population, adding that

    The importance of insurance as a risk management tool, he said, cannot be underestimated, noting that despite the critical realities, current trends show that Nigerians are yet to truly embrace insurance as a tool for risk management. At 0.3 per cent, Nigeria has a staggering low insurance penetration in comparison to counterpart markets in Africa – South Africa has 14.7 per cent; Kenya 2.8 per cent and Angola 0.8 per cent penetration rate.

    He stressed that with an estimated population of over 196 million people and a growing middle class, the National Insurance Commission (NAICOM) reports that “only 1.8 million of our over 96 million adult population have any form of insurance”.

    He added that in recent years, there has been an increase in incidence of natural disasters, terrorism, financial crisis and disease outbreaks that have affected the quality of lives. “In fact, as people venture into life’s daily routine at work, on the road and at home, their lives and properties are exposed to risks in various forms. Families have to deal with loss of loved ones, health emergencies caused by accidents or illnesses; home and property owners face the risk of burglary, flooding, fire attacks and building collapse; business owners have to deal with the risk of damage and theft to their business premises and assets. Vehicle owners are also faced with risks of motor accidents, aggravated theft and third party liabilities. Apart from the grief experienced with these risks, the resultant financial loss can be more destabilising.

  • Old Mutual seeks policy on rising cost of treating critical illnesses

    Access to quality healthcare is one of the most important factors for living a quality life and one of the most critical human needs.

    After all, health they say, is wealth and only a person in good health can create a successful enterprise.

    According to the World Health Organisation (WHO), access to healthcare is often times the lowest in Sub-Saharan Africa where residents have to pay out of their pocket for medical expenses.

    In Nigeria, the average spending on health per person is valued at $216 (about N78,000) of which $159 (about N57,000) is out-of-pocket and a paltry $35 (about N12,000) coming from government’s assisted healthcare management initiatives.

    Yet, the story is not getting any better, especially as today’s economic downturn and the resultant reduction in purchasing power have combined to make access to adequate health care a distant dream for Nigerians.

    Another study by the WHO, showed that 90.2 per cent of Nigerians cannot afford to pay for medications for their ailments. What this means is that for the average Nigerian, an unexpected health challenge can cause major financial disruption leaving one with healthcare bills they often cannot afford.

    This problem can be further worsened if the ailment diagnosed is a critical illness, which globally involves very costly medicare, due to the extensive examinations, rare medications and prolonged complicated treatment process.

    Critical Illnesses are ailments that can have fatal or terminal effect on the human body. These ailments include; Stroke, Cancer, Heart Attack, Coronary Artery Disease, Hepatitis, Chronic Liver Disease, Chronic Lung Disease, Kidney Failure, Multiple Sclerosis, Paralysis / Paraplegia Muscular Dystrophy, Alzheimer’s Disease, Parkinson’s Disease, Brain Tumor, to mention but a few.

    The severity of a critical illness determines the extent of the comprehensive treatment process, hence, people are more likely to be worse hit financially, when they develop a critical illness. Those affected have to face reduced economic performance caused by low to zero productivity or job loss, thereby preventing them from meeting their daily needs and commitments. One major evidence of how deep the huge cost of treating critical illness has affected Nigerians, is the rising trend of individuals turning to online crowd funding to manage the huge bills.

    According to reports from popular online crowd funding website, GoFundMe, 1 in 3 campaigns through the website are for medical costs and there are over 250,000 medical campaigns per year raising $650 million (N235.3 billion) each year.

    One of the critical illnesses which has continued to affect the economic capabilities of Nigerians is cancer. A recent investigation revealed that 80 per cent of cancer sufferers cannot afford lifesaving procedures due to the significant challenge of paying for medical bills out-of-pocket. Based on the WHO’s data which showed that an estimated 8.8 million people in the world die from cancer annually, and 75 per cent of this deaths in the world are recorded in low- and middle income African countries.

    Reports by the Nigerian Association of Nephrology also showed that a staggering 25 million Nigerians, (about 13.9 per cent of the population) have kidney related conditions. The most common being Chronic Kidney Disease; a condition which commonly affects relatively younger individuals, most of whom are in the economically productive age group.

    What this means is that as these individuals battle to stay alive, they are at risk of facing financial difficulties as the illness limits their productivity and involvement in economic activities.

    But it is not all grim for Nigerians, said Keith Alford, the Managing Director, Old Mutual Nigeria Life Assurance Company, an affiliate of Old Mutual Limited, one of Africa’s leading financial powerhouses with over 170 years experience.

    He admonished that these shocking reports and the fearsome outlook for critical illnesses in Nigeria – in terms of severe financial exposures – can be proactively mitigated through the financial protection which insurance policies provide, specifically for critical illnesses.

    “We understand that close to 90 per cent of Nigerians lack Health Insurance, leaving nine out of every 10 Nigerians completely exposed to the huge and harsh financial impact of contracting any critical illness. We know that critical illnesses such as cancer, heart attack, stroke, kidney, and liver diseases are eternally lurking in the corners and can spring on us without warning.

    “Our desire at Old Mutual is for any patient who has any of the critical illnesses to concentrate his, or her will power to full and speedy recovery rather than double the grief with the financial burden for the expensive treatment.

    The Old Mutual insurance cover for critical illnesses should be taking the responsibility for all the financial requirement, whilst the patient devotes self to the healing process. This is the least that every hardworking Nigerian deserves. Quote

    “ Indeed, Critical Illness Plan, which can also be referred to as Critical Illness Cover, is an insurance product in which the insurer (the insurance company) is contracted to typically make a lump sum cash payment if the policyholder is diagnosed with one of the specific illnesses on a predetermined list as part of an insurance policy.

    The implication is that if one is to be diagnosed with, or undergoes a medical procedure for any of the specified critical illnesses that the insurer covers during the length of the policy, lump sum cash will be paid to take care of the medical bills.

     

  • Old Mutual partners Ecobank on insurance penetration

    Old Mutual General Insurance Company and Old Mutual Nigeria Life Assurance Company have announced a Bancassurance partnership with Ecobank Nigeria, a subsidiary of Ecobank Transnational Incorporated, to offer insurance products and services to existing and prospective customers in Nigeria.

    Old Mutual General and Old Mutual Nigeria Life are subsidiaries of the Pan-African Insurance giant and leading global financial services group, Old Mutual Limited,

    Old Mutual Nigeria Managing Director, Keith Alford said the collaboration, known as the Bancassurance Referral Model, offers Old Mutual an extensive outlet to offer life and general insurance products to Nigerians across 62 Ecobank branches in Lagos, Port Harcourt, Abuja and Ibadan.

    The Bancassurance partnership, according to him, is expected to  extend to 200 branches across Nigeria by 2019.

    He said the partnership, which commenced on June 4, 2018, enjoys the approval of the related industry regulators, the National Insurance Commission (NAICOM) and the Central Bank of Nigeria (CBN), for the sale of insurance products in banks through the Bancassurance Referral Model.

    He said:“The Old Mutual-Ecobank Bancassurance Partnership already exists across eight African countries with Nigeria projected to be the most robust in reach and spread. Having been in partnership with Ecobank on other fronts of our business over the years, this Bancassurance partnership further strengthens the capacity of both financial institutions to offer multiple access points for our various products and services to customers across Nigeria and indeed, Africa.

    “This is very unique and strategic. Through this partnership, Old Mutual will leverage Ecobank’s existing customer base and wide distribution to promote financial inclusion and insurance penetration, while pushing our brand offerings to customers of Ecobank. Customers and corporates with multiple footprints across African markets now have a one stop shop for all their Bancassurance services within the continent.

    Executive Director, Consumer Banking, Ecobank Nigeria, Mrs Carol Oyedeji, who also commented on the partnership, said the bank is delighted to be consolidating its longstanding partnership with Old Mutual in Nigeria.

    She described it as an alliance of brands, whose pan-African agenda and customer delivery objectives align perfectly.

     

     

     

  • Old Mutual spends bulk of Africa war chest on UAP stake in Kenya

    Old Mutual Plc (OML), which earmarked 4.3 billion rand ($374 million) for acquisitions in Africa, increased its stake in Kenya’s UAP Holdings Ltd., meaning that the insurer has now spent more than half of that war chest.

    Old Mutual, which is expanding in Africa to profit from the continent’s fastest-growing economies, will now hold 60.7 percent of UAP after purchasing a further 37.3 percent stake for $155.5 million in cash, the London-based insurer said in a statement Monday. The transaction takes its investment in UAP this month to $253 million.

    “The majority stake we have secured in UAP, combined with the existing Old Mutual businesses in Kenya, will provide the Group with the scale and product breadth to capitalize on the significant growth expected in the region.”

    In Kenya, East Africa’s largest economy, UAP has the third-biggest property and casualty market share, the second-ranked health insurance business, a large property investment portfolio and a fast-growing life insurance business, Old Mutual said. UAP also has operations in Uganda, Rwanda, Tanzania, South Sudan and the Democratic Republic of Congo. This deal follows Old Mutual’s acquisition of microfinance company Faulu Kenya DTM Ltd.

    “Following the conclusion of this transaction, we will have invested nearly $300 million in the region since 2012,” Ralph Mupita, chief executive officer of Old Mutual Emerging Markets, said in the statement.

    Old Mutual rose in Johannesburg trading, climbing one percent to 35.37 rand