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By Moses Kaketo
Financial services firm UAP-Old Mutual Uganda formerly UAP insurance joins MTN-Uganda, and a host of other companies that are planning/ have sent their employees home. Old Mutual acquired a 60.66% stake in the UAP group in July 2015.
Sources at the once mighty financial services firm told Newz Post the company’s expenditure is up in the roof yet the sales have significantly dropped recently.
Knowledgeable sources at the Nakawa based insurance firm revealed that the insurance company is planning to send home about 70 employees as it tries to find a winning formula. The firm employs more than 230 staff.
The unlucky employees will be shown the exit early next month. The departments that are most likely to be affected most include: underwriting, operations and finance. The Finance department has 20 staff currently. The number is expected to drop by half.
“We regret the inevitable impact on our employees. While this kind of restructure is never an easy process to manage, we are committed to applying our organisation’s values of respect and accountability, and will ensure to comply fully with the relevant labour laws,” said UAP -Old Mutual Group CEO Peter Mwangi.
In an email to all UAP-Old Mutual Uganda staff, management requested them to provide an update CV among others.
‘‘Dear all, please provide the following to the Human resources department so that we can update your files: Update CV, Certified copies of your academic documents. The Human resources team will be waiting for feedback from you with less back and forth. Please note that we are required to close this exercise by 10th February 2017 so your quick response will help us close this project for the Group to update their part.’’ The email reads in part.
Knowledgeable sources told Newz post that the exercise is meant to find reasonable ground to lay off the employees.
The development comes at a time when the company has lost a couple of experienced staff to rival and fast growing CIC Africa -Uganda headed by former UAP-Old Mutual CEO Ms Zipporah Mungai.
Ms Zipporah ‘resigned’ last year alongside Finance manager Ms Katushabe. Their exit followed a series of events that could have exposed the insurance giant.
These senior executives were followed by a couple of experienced staff and former brokers /risk advisers for UAP. – Thereby taking some customers with them –Insurance Customers build a lot of relationship and allegiance with the broker/ risk advisor, and if the broker changes employment, they move with over 80% of their clients.
This is true because the insurers association, UIA, does not allow insurance companies to deal directly with their customers if they were acquired through brokers.
During her tenure, Zipporah Mungai turned around UAP-the firm grew in market share and net profit threatening market leader Jubilee Insurance. Since the shake-up at UAP, Jubilee Insurance is a lion in the jungle, with no serious competitor. The would be threat AIG chose to jump out of the flying pan.
To shut down outlets
The restructuring is expected to see a number of branches/ outlets closed. Those in the firing line include: Naalya branch, Entebbe road branch, Nakawa branch among others. Each centre at UAP-Old Mutual is seen as a cost centre, and those underperforming will be closed.
Early last year, Old Mutual Plc sought the services of KPMG- the group external auditor to conduct an enquiry into the affairs of UAP Insurance. The report [which Newz Post got copy] uncovered a number of issues, which could be explain the current vows at UAP-Old Mutual.
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