UAP Insurance South Sudan (UAPISS), a subsidiary of Old Mutual Holdings, has halted Insurance business in the South Sudan market beginning this month.

“This follows strategic review of the business and its operating environment. During the period UAPISS to service all existing policies and honor its obligations to policyholders.” Nannette Miingi, Group Company Secretary, said in the notice.

“UAPISS remains solvent and will continue to meet all valid claims and policyholders liabilities during the run-off period in compliance with prevailing laws and relevant regulatory oversight,” Miingi added.

The South Sudan business is part of the UAP Old Mutual Group and wider Old Mutual Limited. The UAP Old Mutual Group comprises of three key players as a result of the acquisition of a controlling stake in Faulu in 2014 and UAP in 2015 by Old Mutual. The acquisition resulted in Old Mutual Kenya and UAP Holdings as well as Faulu Microfinance Bank forming one of the largest financial services groups with a growing footprint in East and Central Africa. 

The company’s control in the Tanzanian unit ceased in August, with Strategic Ventures Company taking ownership in running the Tanzanian business.

By the time of the sale, the company explained that the decision was driven by UAP Insurance Tanzania’s underperformance and its failure to achieve expected returns on capital.

In September last year, an investor Joel Kibe sought action against Old Mutual Holdings over allegations of minority shareholders mistreatment among other issues raised to the Capital Markets Authority (CMA) in an ongoing dispute.

Joel Kibe, a shareholder who holds 1.55 million shares, wants CMA to investigate the company for mismanagement, asset disposal without accountability, unapproved borrowings, dilution of minority shareholding, and denial of access to company records.

He says that actions have rendered the shares of the company illiquid.