In view of the situation in the banking sector, the slow growth of the South African economy, less than 2% in 2014, has pushed large insurers in the country to seek business out of their borders.
Old Mutual and Sanlam are in this strategy, the first being present in several countries of the continent including Kenya, Zimbabwe, Malawi, and Namibia. Two recent establishments were set up in 2013 in Ghana and Nigeria.
In addition to strengthening its presence in Kenya, the latest acquisition of a 60% stake in UAP Kenya’s capital paves the way for Old Mutual to expand to Uganda, Rwanda, Tanzania, South Sudan and DR Congo.
Sanlam, on its part, is operating in 11 African countries, currently targeting West Africa.
The group has strengthened its presence in Ghana in October 2014 where it acquired 40% of the Enterprise’s non life class of business.