Inside the Strategic Wind‑Down and What It Means for Policyholders
In a major development affecting the East African insurance landscape, Old Mutual, through its subsidiary UAP Insurance South Sudan (UAPISS), has officially ceased underwriting new insurance policies and renewing existing ones in South Sudan as of July 3, 2025. This decision marks the end of nearly two decades of operations in Africa’s youngest country and signals a broader strategic shift within the UAP Old Mutual Group.
The exit comes amid growing macroeconomic instability, an increasingly tough operating environment, and what the company describes as a realignment of priorities in line with its East African growth strategy.
Why Old Mutual Is Leaving South Sudan
The decision to wind down operations in South Sudan wasn’t made overnight. In a statement released by Nannette Miingi, the Group Company Secretary and Legal Counsel at Old Mutual East Africa, the company pointed to the results of a comprehensive strategic review of the market.
“After careful consideration of market conditions and regulatory frameworks, we have made the difficult decision to exit the South Sudan insurance market,” said Miingi. “The environment no longer aligns with our long-term strategic and commercial objectives.”
Since entering South Sudan in 2006, just a year after the signing of the Comprehensive Peace Agreement (CPA), UAPISS became one of the first licensed insurance firms in the region. But over time, the business climate has grown increasingly volatile, marked by currency instability, political uncertainty, regulatory challenges, and limited financial infrastructure. These factors have driven up operational costs while reducing insurance uptake across the board.
What Happens to Existing Policyholders?
While UAPISS has stopped writing new policies or renewing existing ones, Old Mutual emphasized that current policyholders will continue to be fully covered throughout the wind-down period.
In a formal statement, the insurer confirmed the following:
- All valid claims will be honored in line with contractual obligations and applicable insurance laws.
- Policyholders are not required to take any immediate action, other than contacting UAPISS for specific claim processes or updates.
- The company remains solvent and financially stable during the wind-down.
“We are committed to an orderly and transparent wind-down process. Policyholders can rest assured that their rights will be protected,” Miingi added.
This pledge ensures a responsible market exit, minimizing disruption for individuals and businesses currently holding policies with UAPISS.
Strategic Context: A Wider East African Realignment
Old Mutual’s exit from South Sudan isn’t an isolated move. It follows closely on the heels of the August 2024 divestment of UAP Insurance Tanzania, which was sold to Strategic Ventures Company, a local Tanzanian investor group. That transaction stemmed from prolonged underperformance and difficulty in securing adequate returns on capital.
These back-to-back exits underscore Old Mutual’s recalibration of its East African footprint, with increased focus on core markets such as Kenya, Uganda, and Rwanda, where insurance penetration is higher, regulations are more predictable, and growth prospects remain strong.
According to company insiders, Old Mutual is “consolidating its operations to deliver stronger returns and support sustainable growth in priority markets.”
Industry Impact: What This Means for South Sudan
Old Mutual’s departure represents a significant blow to South Sudan’s nascent insurance industry, which is still in the early stages of development. As one of the first private insurance providers in the country, UAPISS played a central role in establishing industry norms, introducing new products, and supporting commercial risk management in both oil and non-oil sectors.
Its withdrawal may:
- Reduce investor confidence in South Sudan’s financial services sector.
- Create a gap in coverage for businesses reliant on corporate insurance, particularly in construction, logistics, and healthcare.
- Raise concerns over the country’s ability to attract and retain global insurers without regulatory reforms and economic stabilization.
Still, analysts believe this is an opportunity for local insurers and new entrants to step in and fill the void left by UAPISS.
Minority Shareholder Dispute Clouds Group Outlook
Old Mutual East Africa is also facing internal scrutiny. In 2024, Joel Kibe, a minority shareholder in Old Mutual Holdings PLC, raised concerns about governance and decision-making within the group. He submitted a formal petition to Kenya’s Capital Markets Authority (CMA), calling for intervention over what he described as the marginalization of minority shareholders.
While unrelated directly to the South Sudan exit, the issue has added pressure on the group to improve transparency and accountability as it reshapes its regional strategy.
Summary of Key Facts:
- Exit Effective Date: July 3, 2025.
- Reason: Strategic review and alignment with regional growth priorities.
- Impact on Clients: No disruption for existing policyholders; claims and policies will remain active until expiry.
- Tied to Larger Strategy: Follows divestment of UAP Insurance Tanzania and prioritization of high-growth markets.
- Industry Concern: Raises questions about the viability of insurance operations in South Sudan.
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Final Thoughts
Old Mutual’s exit from South Sudan’s insurance market is a cautionary tale for businesses operating in high-risk environments. While the company remains committed to honoring all obligations, its strategic pullout highlights the importance of political stability, sound regulation, and macroeconomic resilience in fostering long-term investment.
For South Sudan, the departure leaves a void—but also a chance to reset. Policymakers now face the task of rebuilding confidence and laying the groundwork for a more inclusive, resilient financial services sector.
As for Old Mutual, its bold realignment may well position the company for stronger profitability and sustainable expansion—albeit outside South Sudan’s borders.
