Old Mutual to Invest $600m in Nigeria, Others

Old Mutual Group, a leading insurance firm in world on Thursday said it has concluded plans to invest about $600 million on expansion program in East and West Africa.

Offong Ambah, group chief executive office,  Old Mutual West Africa, disclosed this during a media briefing in Lagos, saying Nigeria is a critical part of that expansion strategy.

He said that the company was commitment to replicate in Nigeria the successes the group were known for worldwide.

He said: “The Nigerian economy is developing at a fast pace and offers significant growth opportunities. Old Mutual is seizing the opportunity to be part of this development and we are excited by its prospects.

“Old Mutual is in Nigeria as part of the group’s overall strategy to build a franchise in the West African region.

“The prospects for growth in Africa are strong due to the growing political stability and improved governance, a growing population with strong consumer demand, more workers entering the formal economy for the first time and an emerging middle class keen to protect their wealth and assets. There is also a strong domestic GDP growth in a number of countries and an underpenetrated financial services sector.”

He added that the roll out of Old Mutual Nigeria forms part of the strategic priorities of the Old Mutual group in its expansion drive in West Africa.

Ambah said the company intended to roll out a full range of products in the near future.

“We are in the final stages of acquiring a short-term insurance company (Oceanic General insurance business) which will enable us to provide a broad range of short term and life insurance products to the Nigerian market,” he said.

He noted that the objective is to work with existing insurance companies and the regulator to broaden and deepen the insurance market in Nigeria.

“This we plan to do through the introduction of innovative products, financial education and reaching out to the underserved and un-served segment of the market. A critical part of this, is tackling the scepticism of many Nigerians regarding insurance which we are addressing through the prompt settlement of claims and excellent service delivery amongst others,” said Ambah

He affirmed that Old Mutual Nigeria’s commitment to its group value, stating that it is “committed to being a customer centric company which operates responsibly, provides solutions to address the savings, protection and investment needs of its customers and is supportive of the community in which it operates by contributing positively to its development.”

With more than 168 years’ experience in Africa, Old Mutual, a leading international long-term savings, protection, banking and investment group, prides itself in its rich heritage, industry defining milestones and success in all its businesses. In line with its overall expansion strategy in East and West Africa, Old Mutual achieved another milestone with the roll out of Old Mutual Nigeria Assurance Company, following its full acquisition of majority stake in Oceanic Life from Ecobank

Old Mutual provides life assurance, asset management, banking and general insurance to more than 14 million customers in Africa, the Americas, Asia and Europe. Originating in South Africa in 1845, Old Mutual has been listed on the London and Johannesburg Stock Exchanges, among others, since 1999.

In the year ended 31 December 2012, the Group reported adjusted operating profit before tax of £1.6 billion (on an IFRS basis) and had £262 billion of funds under management from core operations.

Old Mutual Nigeria Assurance Company (Old Mutual Nigeria), a subsidiary of the Old Mutual group provides a range of insurance solutions tailored to meet our customers’ needs and its product offering are Group Life Assurance & Credit Life Assurance.

On distribution network, the Old Mutual boss said that the company will be establishing more branch network and would use Ecobank branches and other banks as its major channel of distribution to sell insurance.