(Ecofin Agency) - Following the sale of its short-term insurance subsidiary in Tanzania in January 2024, Old Mutual is continuing its withdrawal from certain African markets. The group, whose 1st shareholder is the South African Public Investment Corporation (16.76%), has launched the sale of its life and general insurance activities in Nigeria.

South African financial services group Old Mutual has reached an agreement with British group Emple to sell its majority stake in its Nigerian life and general insurance subsidiaries for an undisclosed amount.

According to Old Mutual, the decision is part of a strategy to review its business perimeter outside South Africa. The insurance group, which operates in 13 African countries in addition to China, explains that it wants to concentrate on specific, more profitable markets.

With the sale of its shares in Old Mutual Nigeria Life Assurance Company and Old Mutual General Insurance Company Nigeria, the holding company listed on 4 African stock exchanges (South Africa, Namibia, Malawi, Zimbabwe) will henceforth operate in this segment only in Ghana in the West African region. It will remain in Nigeria in the asset management sector only.

The sale agreements are due to be finalized this year. The parties involved will have to satisfy a series of customary regulatory and contractual approvals.

Old Mutual, whose largest shareholder with a 16.76% stake is the South African asset manager Public Investment Corporation (PIC), has also sold its entire stake in its short-term insurance business in Tanzania in January 2024. The transaction is pending approval.