16 NEW VISION, Friday, February 05 2016 ADVERTS

Liberty Holdings acquires 51% of short-term insurer, East African Underwriters Ltd The acquisition will position the companies for growth and raise insurance penetration in

KAMPALA – Liberty Holdings Ltd (Liberty) and the in the short-term industry will enrich our investment About Liberty Holdings The flagship of the Group is Sugar Limited, Madhvani Group Ltd announced today they have and development efforts by broadening the skills which was established in 1930, and now enjoys a concluded a transaction that will see Liberty acquire base and bringing new technical expertise to the Liberty is a Johannesburg-listed insurer that was commanding position in Uganda’s economy. Kakira a 51% stake of Madhvani Group’s short-term insurer, market.” founded in 1957 by Sir Donald Gordon. Liberty is East African Underwriters Ltd (EAUL). Sugar employs over 8 300 people, produces over an established and growing Pan-African financial The acquisition will strengthen Liberty’s position 180 000 tonnes of sugar annually, which is 50% of services group, with a presence in 16 countries in The acquisition cements ties between Liberty and in the East African general insurance market as the Uganda’s consumption. It also generates 51MW Southern Africa, East & Central Africa and West Africa. the Madhvani Group. The two groups already enjoy Group already has a short-term insurance presence green electricity from bagasse, a by-product from a meaningful and cordial partnership in Liberty Life in Kenya and trading under the Heritage sugar production. Of this, 34MW is supplied to the Assurance Uganda Ltd, the number one life assurer brand. These companies serve both the local and Liberty offers a comprehensive range of long- in the country. multinational clients insurance needs in East Africa, term and short-term insurance products, value- national grid. It is currently embarking on a USD36 where Liberty has ambitions to become one of the added services, health solutions, retirement income million project to produce 20 million litres per annum The transaction is in line with Liberty’s strategy to leading insurers in this fast growing region. facilitation, investment, and lifestyle risk solutions bio-fuel ethanol or extra neutral alcohol using for both the retail and corporate markets. Liberty is diversify revenue sources and expand on the African another by- product, molasses. Together with direct continent through acquisitions and partnerships. According to the World Bank, Uganda is a developing one of four biggest listed long-term insurers on the country with a rising population and GDP of $26.3bn, JSE by market capitalisation and ranks as one of the employment, its activities support over 100 000 Mr Mike du Toit, Liberty’s Regional Executive for East which has been growing between 5% - 6% a year 50 largest companies in , with products Ugandans. and Central Africa, says the company is delighted to over the past four years. A United Nations report distributed across multiple channels throughout have reached agreement on a majority stake in EAUL forecasts that Uganda will have the fourth largest Africa. The Madhvani Group conducts various corporate and is privileged to enter into further partnership percentage increase in population in Africa from social responsibility programmes, which includes with the Madhvani Group, one of Uganda’s largest around 39-milion in 2015 to 130-million in 2050. In 2002 Liberty established a unique and valuable 15 estate schools that provide education to over 4 private enterprise groups with significant interests in Bancassurance agreement with Standard Bank, most sectors of the economy. Yet, insurance penetration is among the lowest the biggest bank in Africa, also Liberty’s majority 000 children of employees; medical assistance to in sub-Saharan Africa at 0.85%, according to shareholder at 54%. The value of new business employees, their dependents and the surrounding “This extension of the partnership will provide Liberty the Uganda Insurance Regulatory Authority. The derived from this partnership during 2014 was 30% community through a 100-bed hospital, 2 clinics, with a full insurance offering to enable our growth insurance market has experienced significant growth higher than 2013. In 2007 Liberty acquired 100% of strategy of leading in our chosen customer segments in gross written premiums in recent years in excess of outreach services clinics and two standby ambulances. STANLIB Asset Management, currently a significant in the Uganda market,” said du Toit. “At Liberty, we are 30%. General insurance makes up more than 75% of Kakira Outgrowers Rural Development Fund, which is participant in the institutional and mutual fund fully committed to growing the insurance market and the total insurance market. jointly set up between farmers and the Company, has market in South Africa and East Africa, offering clients making a difference to the developmental needs of spent over USD1.5 million since 2007 to improve the the country. We are also fully committed to helping “To remain competitive in the growing East Africa a range of distinct investment solutions from varied quality of life of the farmer communities in the form Ugandans and corporates alike protect themselves region, there is an increasing need for comprehensive franchises via portfolios and specialist asset classes. against unforeseen risks, build wealth and save for insurance propositions, notably Life, Health and of constructing health facilities, roads, schools, etc. their future.” General Insurance,” explained du Toit. About EAUL and the Madhvani Group: In addition, Madhvani Foundation has been offering scholarships since the 1960s to students pursuing Mr Kamlesh Madhvani reiterated the Madhvani The transaction has received all regulatory approvals EAUL is currently wholly-owned by the Madhvani scientific and technical courses at university level. Group’s commitment to the insurance industry. “We in South Africa. Due process has been followed with Group, one of Uganda’s largest and most esteemed are pleased to be expanding our relationship with this transaction in notifying the Insurance Regulatory private enterprise groups with significant interests in About 200 deserving students from financially poor Liberty,” he says. “We believe this new partnership Authority of Uganda. almost all sectors of the economy. backgrounds benefit each year.