Liberty Holdings acquires 51% of Uganda short-term insurer and granted a life licence in Lesotho

This positions Liberty for growth on the African continent.

Liberty Holdings Ltd (Liberty) and the Madhvani Group Ltd announced today they have concluded a transaction in Uganda that will see Liberty acquire a 51% stake of Madhvani Group’s short-term insurer, East African Underwriters Ltd (EAUL).

The acquisition cements ties between Liberty and the Madhvani Group Ltd. The two groups already enjoy a meaningful, cordial partnership in Liberty Life Assurance Uganda Ltd, the number one life assurer in the country.

Liberty is also pleased to announce that it has received its licence in Lesotho to operate a life and health business. The Lesotho licence will allow Liberty to further strengthen its strategic partnership with the Standard Bank group.

The Uganda transaction and Lesotho licence expands Liberty’s insurance footprint on the continent, as well as compliments the already established asset management operations of STANLIB in the same territories, further enhancing Liberty’s strategy to diversify revenue sources for the group.

Mr Sandile Hlophe, CEO of Liberty Group Arrangements responsible for Liberty Corporate, Africa Insurance and Health businesses. “Liberty’s expansion strategy on the continent and the opportunities to increase access to affordable, accessible and simple solutions are enablers of the group’s vision to become the trusted leader in insurance and investments in Africa and other chosen markets.”

He said Africa is currently the second largest and most populous continent in the world, projected to more than double to 2.4 billion people by 2050; which presents a great opportunity to increase financial services and financial inclusion.

“You need to have a long-term view to capture these opportunities, especially with the current low insurance penetration rates reported across the continent,” said Mr Hlophe. “Liberty is committed to ensuring people across Africa have access to simple, relevant and competitive insurance solutions of an international standard, enabling them to choose those that best suit their personal short-term and long-term needs.”

“To remain competitive in the growing East Africa region, there is an increasing need to offer comprehensive insurance propositions, notably Life, Health and general insurance.” concluded Mr Hlophe.

The acquisition in Uganda will strengthen Liberty’s position in the East African general insurance market as the Group already has a short-term insurance presence in Kenya and Tanzania trading under the Heritage brand. These companies serve both the local and multinational clients insurance needs in East Africa where Liberty has ambitions to become one of the leading insurers in this fast growing region.

The transaction has received all regulatory approvals in South Africa. Due process has been followed with this transaction in notifying the Insurance Regulatory Authority of Uganda.