UAP Life Assurance injected Sh2.59 billion into Old Mutual Assurance under a restructuring that saw the combination of the businesses into one entity.
UAP Holdings had announced plans to merge its life insurance business with Old Mutual Life Assurance Company Limited (OMLAC).
The move was meant to help the group increase efficiencies by consolidating the Kenyan businesses of UAP Life and OMLAC while achieving a simpler group co-operate structure
The Insurance Regulatory Authority disclosures confirmed the additional investment was made to the subsidiary.
“UAP Life Assurance Limited invested Sh2.59 billion in Old Mutual Assurance Company Limited,” the IRA said in the first quarter report.
UAP Life Assurance Limited acquired OMLAC in 2021 and sought approval from the Insurance Regulatory Authority to run OMLAC as a closed fund to efficiently operate one life company in the Kenya market.
Under the IRA approval, no new business will be written in OMLAC and all renewals and new business will instead be written under the UAP Life. The transaction resulted in OMLAC becoming a subsidiary of UAP Holdings through UAP Life.
Since the merger of UAP-Old Mutual Kenya Group, the company has been keen on collapsing overlapping businesses into single entities.
Old Mutual acquired a majority stake of 60.7 percent in UAP for Sh25.6 billion in July 2015, but the two holding companies continued to operate similar units in life insurance and asset management as they worked out the complex merger process.
Both the acquisition and mergers required approvals from the IRA and the Capital Markets Authority besides shareholders.
UAP Holdings is a public company trading on the over-the-counter market. Old Mutual’s subsidiaries include Faulu Kenya, Old Mutual Securities, OM Asset managers, OM Investment services, OM Properties, OM Capital and OM Life Assurance.