Liberty Holdings limited has acquired a 51 percent stake of Madhvani Group’s East African Underwriters Limited. Mike du Toit, Liberty‘s Regional Executive for East and Central Africa says the transactions is in line with Liberty’s strategy to diversify revenue sources and expand on the African continent through acquisitions and partnerships.
Liberty is a Johannesburg listed insurer. Sir Donald Gordon founded it in 1957. It is present in 16 countries in Southern Africa, East and Central Africa and West Africa.
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‘ ‘ This extension of the partnership will provide Liberty with a full insurance offering to enable our growth strategy of leading in our chosen customer segments in the Uganda market’’ Says du Toit
‘‘At Liberty, we are fully committed to growing the insurance market and making difference to the developmental needs of the country. We are also fully committed to helping Ugandans and corporate alike protect themselves against unforeseen risks, build wealth and save for their future’’
The acquisition is expected to 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 the fast growing region.
According to the World Bank, Uganda is a developing country with a rising population and GDP of $ 26.3 billion, which has been growing between 5 percent and 6 percent a year over the past four years. A United Nations report forecasts that Uganda market experienced significant growth in gross written premiums in recent years in excess of 30 percent. General Insurance makes up more than 75 percent of the total insurance market.
To remain competitive in the growing East Africa region, there is an increasing need for comprehensive insurance propositions, notably life, Health and General Insurance,’’ explained du Toilt.