The Abraaj Group, a leading investor operating in global growth markets, today announced its full exit in UAP Holdings Limited, a pan-African insurance holding company with subsidiaries in Kenya, Uganda, Tanzania, Rwanda and South Sudan, as well as an insurance brokerage arm in the Democratic Republic of Congo.
UAP’s services include life insurance, general insurance, health insurance, premium financing services and investment management services.
UAP has been operating in Sub-Saharan Africa since 1977 and its general insurance subsidiaries hold dominant market positions in its main markets. 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.
Under the terms of the agreement, Abraaj sold its 13.6% stake in the Company, which is traded on Nairobi’s over the counter (OTC) market, to Old Mutual plc, a London-listed international investment, savings, insurance and banking group. In March 2012, Abraaj invested, through one of its Funds, in UAP alongside Africinvest and Swedfund, using a convertible debt instrument. Simultaneously with a limited public offer conducted in November 2012, Abraaj converted its instrument into equity shares in the Company.
Abraaj worked closely with UAP’s board and management team to expand the Company’s regional footprint. Over the course of Abraaj’s investment, the Company’s gross written premium and book value increased at compound annual growth rates (CAGRs) of 25.5% and 18.8%, respectively. UAP also expanded organically 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.
Davinder Sikand, a Partner in The Abraaj Group, said: “We invested in UAP based on the Company’s strong brand and well established business lines. With a surge in demand driven by the rapid expansion of a young, urban middle class across Sub-Saharan Africa, UAP has developed in key African markets, and is well positioned to lead the insurance sector in the region. The team has a clear vision for the Company’s further establishment as a leading pan-African insurance firm, and we look forward to seeing its continued growth.”
Dr Joseph B. Wanjui, Chairman, UAP-Old Mutual Group, concluded: “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.”