Old Mutual plans to make at least two acquisitions within the next five years to boost its market share in the West Africa region, where insurance penetration still has significant headroom for growth.
The market size is a key consideration for customers choosing insurers in the region, according to the head of Old Mutual’s West African operations.
“This is a market where if you are outside the leading companies, then you really struggle to get attention – not only from the corporate sector but also from the retail sector,” Samuel Ogbu, chief executive officer for Old Mutual West Africa, said in a telephone interview from Nigeria’s commercial hub, Lagos.
Established in 1845, Johannesburg-based Old Mutual offers general financial services – including underwriting, pensions and asset management – in about 17 countries, mainly in Africa and China.
It is targeting companies in insurance and complementary business for a takeover in Nigeria. Meanwhile in Ghana it will probably acquire a pension company, Ogbu said.
After the expansion, the West African units of Old Mutual aim to contribute 25% of the group’s return from operations generated outside of South Africa and China by 2030. Old Mutual plans to hire workers, deploy technology and take advantage of bancassurance to increase the number of retail customers, according to the CEO.
