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Prudential acquires IAA for an undisclosed price
Prudential Assurance Uganda Limited (Prudential Uganda) said it ''has successfully transferred the policy holders, staff and agents of International Air Ambulance Healthcare (IAA Healthcare) to its business.'' PHOTO/COURTESY
What you need to know:
- Prudential has been operating in Uganda since 2015 and operates in seven other markets across Africa including Cameroon, Cote d’Ivoire, Ghana, Kenya, Nigeria, Togo, and Zambia.
Prudential has acquired International Air Ambulance Healthcare (IAA) for an undisclosed amount.
The acquisition follows a comprehensive transfer process presided over by sector regulator - Insurance Regulatory Authority (IRA).
IAA has been a member of the International Medical Group with an estimated 50,000 policy holders.
The deal will see Prudential improve both the number of its policy holders and portfolio position as a life insurance company.
Prudential, during the period ended December 2020 posted Shs2b in profits.
Mr Arjun Mallik, the Prudential eastern and central Africa chief executive officer, said that while he was not at liberty to disclose consideration amounts, the transfer will see at least 50,000 new members added to the Prudential family.
IAA has remained a small player in a market bossed by large insurance companies including Jubilee, UAP Old Mutual and AAR, among others.
Mr Sukhmeet Sandhu, the International Medical Group, chief executive officer, said during the media briefing that IAA was a commercially viable business but they had sought to find a suitable partner to take over its insurance business at the company focuses on healthcare.
“Prudential, given its track record will be a partner of choice and we trust that our clients, some of whom have been with us for more than a decade, will continue to receive quality medical insurance services from Prudential,” he said.
This is the second insurance business takeover in the last three years. In 2019 Kenya-based insurer, Insurance Company of East Africa (ICEA) acquired Liberty Insurance.
During the media briefing, Mr Mallik said the acquisition is a major milestone for Prudential and forms an important part of its growth strategy.
“The process of transfer was rigorous, comprehensive and designed with the IAA policy holder in mind, so as to meet the needs of the existing policy holders and ensure a smooth transition to Prudential post the existing policy expiry,” he said.
Prudential has been operating in Uganda since 2015 and operates in seven other markets across Africa including Cameroon, Cote d’Ivoire, Ghana, Kenya, Nigeria, Togo, and Zambia.
