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The Abraaj Group, a leading investor in global growth markets, has announced the completion of its exit from UAP Holdings Limited, a pan-African insurance holding company with subsidiaries across East and Central Africa. The group sold its 13.6% stake in UAP to Old Mutual plc, an international investment, savings, insurance and banking group.

In March 2012, The Abraaj Group had, through one of its Funds, invested in UAP alongside Africinvest and Swedfund, using a convertible debt instrument. With a limited public offer conducted in November 2012, the investment group converted its instrument into equity shares in UAP.  

Abraaj has helped pioneer the growth and development of the private equity industry in Africa with more than a decade of investing experience and deploying around US$3 billion across the continent. In East Africa alone, Abraaj has over 19 investments including a leading dairy company in Kenya, Brookside Dairy Limited, as well as Kenya-based mining and manufacturing company, ARM Cement Limited.

Over the course of Abraaj’s investment, UAP’s gross written premium and book value increased at compound annual growth rates (CAGRs) of 25.5% and 18.8%, respectively. Abraaj worked closely with UAP’s board and management to expand the latter’s regional footprint. UAP expanded into Rwanda and via an acquisition into Tanzania. In addition, UAP grew its investment portfolio, completing an office park in Uganda and a residential building in South Sudan. Construction of a landmark 31-story building in Nairobi is at an advanced stage, as is development of an office building in South Sudan.

“UAP is well positioned to grow its market-leading position across the region,” Managing Director of The Abraaj Group, Peter Njoka, said. “Our experience in UAP demonstrates Abraaj’s depth of knowledge in the financial services industry, and continues to validate the Group’s experience in growing successful businesses in growth markets,” he concluded. 

UAP, whose services include life insurance, general insurance, health insurance, premium financing services and investment management services, is traded on Nairobi’s over the counter (OTC) market.  The respective general insurance subsidiaries are currently the fourth largest insurance company in Kenya, third largest in Uganda, fifth largest in Tanzania and the largest in South Sudan. UAP’s life insurance subsidiaries have exhibited sustained growth and continue to improve their market rankings. The company has been operating in Sub-Saharan Africa since 1977 and its general insurance subsidiaries hold dominant market positions in its main markets.

Chairman of UAP-Old Mutual Group, Dr Joseph B. Wanjui, said “Abraaj played an important role in developing UAP’s business, enhancing corporate governance and positioning the Company for further growth. Our partnership created many opportunities for UAP and we take this opportunity to thank Abraaj for their support.”