South Africa’s liberty has acquired a controlling stake of a Ugandan short-term insurer in line with the firm’s expansion strategy.
The number four South African firm now has a 51 per cent stake in East African Underwriters Ltd (EAUL) of Madhvani Group, one of the largest conglomerates in Uganda.
The cost of the takeover was not disclosed.
EAUL, an incorporated and licensed insurance firm, covers all commercial risks and medical needs.
The acquisition is expected to aid with insurance penetration in the East African country.
According to reports, Uganda’s insurance penetration is said to be less than 1 per cent despite the country having several insurance companies.
This is not a new entry for the giant firm which has over 2.5 million clients. Liberty already has presence in Kenya and Tanzania. Kenya is said to have taken the lead in its East African growth plant.
Last year, the Pan-African financial services firm announced an approximately $18.3 million expansion strategy in 16 African markets.