Old Mutual Holdings Plc has received regulatory approval to proceed with the next phase of merging its life insurance businesses in Kenya. The transaction involves transferring 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 had obtained shareholder and regulatory approval in 2021 to merge OMLAC and UAP Life Assurance Ltd (UAP Life) with the aim of creating a more streamlined life business. This approval facilitated the conversion of OMLAC into a closed fund, meaning no new policies would be issued, and all new life business was subsequently written under UAP Life, which was later renamed OMLAK in May 2022.
In a notice to clients dated June 25, the group disclosed that it had received approval from the regulator to proceed with the merger’s next phase. “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,” said Loreen Makwanya, OMLAC’s managing director.
Makwanya assured clients of continuity, stating, “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 OMLAK’s maintenance.” OMLAK will honour all policy commitments that OMLAC would have performed.
The company emphasized that there will be no changes to the terms, benefits, or obligations under existing policies. Policyholders will continue to receive customer support, including claims processing services, as before.
Old Mutual Holdings is an East African financial services group comprising seven subsidiaries that underwrite life and non-life insurance risks in Kenya, Uganda, South Sudan, and Rwanda. The group’s life insurance business saw significant improvement, with its profit before tax more than doubling to Ksh682 million in 2024 from Ksh263 million in 2023, driven largely by higher investment income from fair value gains on equity investments and government securities.
