Mutual goes short-term
Sakaria Nghikembua will continue on in his role of Managing Director of Old Mutual Short-term Insurance Company in a process that will enable him to independently operate the assurer, separate from the Mutual and Federal Company of South Africa, itself wholly owned by Old Mutual plc.
OMSIC will now be operated full subsidiary of Old Mutual Namibia which will allow for the setting of business strategy, and execution of business strategy independent from Mutual & Federal South Africa. Business support functions will also be executed in Namibia, in essence ensuring that enhanced mandate levels will now be executed in Namibia. He said, “Our mandate as a short term insurer remains the same. We’ve implemented all the changes that we’ve just shared with you to be better positioned to serve our customers and intermediaries, to become an employer of choice for our current and future employees, and to position our business to play a bigger transformative role in making financial inclusion a reality in our country.”
“The official transaction was concluded between Mutual & Federal (South Africa) and Old Mutual Holdings (Namibia) at the end of May 2014, after the necessary approvals by regulatory bodies both here and in South Africa.
Up until then, the Namibian short-term insurance company was 100% owned by the Mutual & Federal Insurance Company of South Africa, which is itself owned by Old Mutual plc.
“The Namibian short-term business was, in effect, therefore, largely treated as an extension, or branch, of the South African business. The effect of this shareholding transaction is to transfer the ownership of the Namibian short-term insurance business to the country-level,” he added.