Why Is Old Mutual Exiting the South Sudan Insurance Market?

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Old Mutual, one of South Africa’s largest financial services groups, is winding down its insurance operations in South Sudan through its subsidiary, UAP Insurance South Sudan Limited (UAPISS).

The company has announced that, effective 3 July 2025, UAPISS will stop writing new business and renewing existing insurance policies. This decision follows what the firm described as a “strategic review” of its business operations and the wider South Sudan insurance environment.

UAPISS will enter a run-off phase during which it will continue to service all active policies and meet its obligations to policyholders. The company emphasized that it remains solvent and will honor all valid claims in line with regulatory standards.

“UAPISS remains committed to maintaining the highest governance standards and meeting all regulatory requirements throughout the run-off period.” said the Board of Directors in a notice to shareholders.

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Old Mutual’s presence in South Sudan began in 2015, when it acquired a 60.66% stake in UAP Holdings for approximately US$253 million. UAP Holdings, based in Kenya, had earlier established UAPISS in 2006, shortly after the signing of the Comprehensive Peace Agreement that laid the groundwork for South Sudan’s independence.

The insurer was one of the first to offer general, health, and life insurance services in the country and has since operated under the Old Mutual East Africa brand.

However, the insurance market in South Sudan remains one of the least developed in Africa. Insurance penetration is estimated to be below 1%, with demand concentrated among corporate clients such as NGOs, oil firms, and logistics companies.

Individual uptake is limited due to widespread poverty, low financial literacy, and weak consumer confidence in formal financial products.

Operating conditions have worsened in recent years, with persistent political instability, hyperinflation, and currency depreciation straining the economy. Insurers also face an uncertain regulatory environment.

While the 2015 Insurance Act established a basic legal framework, implementation and oversight remain limited, and the country lacks a dedicated insurance regulator.

Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.