Old Mutual Namibia Acquires 100 Percent of Mutual and Federal

OLD Mutual Holdings Namibia has acquired 100% shareholding of Mutual amp Federal.

Former managing director of Mutual amp Federal Sakaria Nghikembua will head the company now called Old Mutual Short Term Insurance Company.

The official transaction was concluded between Mutual amp Federal (South Africa) and Old Mutual Holdings (Namibia) at the end of May 2014, after the necessary approvals by regulatory bodies both here and in South Africa, Nghikembua announced yesterday.

Up until then, the Namibian short term insurance company was 100% owned by the Mutual amp Federal Insurance Company of South Africa, which is itself owned by Old Mutual plc.

“The Namibian short term business was, in effect, largely treated as an extension, or branch, of the South African business. The effect of this shareholding transaction is to transfer the ownership of the Namibian short-term insurance business to the country level,” he said.

Nghikembua said the change is important for many reasons including that it localises the Namibian short term insurance business.

“All core short-term insurance operations are now being executed in Namibia with enhanced mandate levels, specifically in the underwriting and claims management areas,” he said. “So our mandate as a short term insurer remains the same.”

Source : The Namibian