Old Mutual sticks to expansion plans for sub-Saharan Africa.

By bne IntelliNews August 9, 2012
South African insurance giant Old Mutual will continue its expansion into attractive markets in sub-Saharan Africa continues, through a combination of organic growth and bolt-on acquisitions, according to CEO Julian Roberts, quoted by the Independent Online. As part of our African growth strategy we will follow a strict approach in picking the markets in which to operate: we will either target countries with significant populations where we see the opportunity to roll out our Mass Foundation business; or countries with pockets of populations which we believe we can service with existing products and expertise outside of the Mass Foundation business Roberts was quoted as saying. Old Mutual, which is waiting final regulatory approval for the purchase of Nigerian life insurer Oceanic, is weighing up the possibilities of entering also Nigeria's non-life insurance market and is looking at possibilities in Ghana to gain scale. In East Africa it is making progress with plans for further expansion in Kenya and the rest of the region. Old Mutual, which runs insurance, banking and fund management businesses in about 30 countries, posted a pre-tax operating profit of GBP 791mn for the first half of 2012, up 12% y/y, buoyed mainly by a 27% profit growth of its South African banking subsidiary, Nedbank. Roberts said Old Mutuals Emerging Markets business would work closely with Nedbank to achieve its further expansion plans for sub-Saharan Africa.

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