Old Mutual: Major insurance, financial services provider

03 Apr, 2020 - 00:04 0 Views
Old Mutual: Major insurance, financial services provider

eBusiness Weekly

Zimbabwe Stock Exchange-listed and major provider of insurance and financial services Old Mutual Zimbabwe has a reputable track record dating back to the days of the Pioneer Column in 1895 when the first Old Mutual Policy was sold.

The local wing is a subsidiary of the South African headquartered Old Mutual Limited, that was founded back in 1845 before its expansion into many parts of the globe and ultimately as a renowned pan African investment group.

Old Mutual Limited’s germinal office in Zimbabwe was duly established in 1902.

Subsidiaries include the Central Africa Building Society (CABS), Old Mutual Life Assurance Zimbabwe, Old Mutual Insurance Company (a short-term insurance company), Old Mutual Securities, Old Mutual Property (Real Estate), Old Mutual Investment Group (into asset management and unit trusts), and Three Anchor Investments Limited.

The real estate wing’s major tangible works include the Eastgate Centre with its recently constructed Eastgate Market, High Glen Shopping Centre and Westgate Shopping Mall, to mention a few.

The company originally evolved in England as England and Wales Old Mutual Plc before expansion to Netherlands, South Africa and ultimately to Zimbabwe.

The life assurance business evolved with the formation of the company in 1845 as part of the business portfolio. As such, the business was incorporated upon establishment of the Zimbabwean subsidiary.

It was initially one of the businesses at the Bulawayo and Salisbury branches of the then South Africa Mutual Life Assurance Society.

CABS, presently the country’s third largest bank, was formed in 1954.

In 1973, the financial services conglomerate, Old Mutual plc acquired shareholding in Nedcor Bank, hence the interest in the bank, later renamed Nedbank in 2005.

The company unbundled its major shareholding in Nedbank on October 26, 2018. From the previous 52 percent stake the company now had 19,9 percent shareholding in the bank.

Old Mutual property, on the other hand, started operating as a property manager in 1981 when it arose as a division of the then Old Mutual Life Assurance Society.

In 1999, the holding company was demutualised and listed on the Johannesburg Stock Exchange and the Zimbabwe Stock Exchange.

In 2010 the company launched Old Mutual Securities making the company a formidable player in the local securities market. In 2017 the parent company undertook a restructuring exercise that saw the exit from America and Asia markets to concentrate on Africa.

In 2019, Old Mutual Zimbabwe followed with its major restructuring exercise that saw the company’s operations being merged into three units from the then eight business units.

The restructuring was in tandem with the parent group’s Wealth Management, Banking and Insurance business units.

As part of the process Old Mutual Property Zimbabwe, Old Mutual Real Estate and Old Mutual Investment Limited, had their businesses consolidated to form Old Mutual Investment Group Zimbabwe. The exercise sought among other things to reduce unnecessary costs.

Further, CABS and CABS Custodial services were merged into a single banking unit.

Meanwhile, the group has issued a renewed cautionary statement notifying of an undisclosed potential transaction with a bearing on the company’s shares.

Shareholders have been advised to be cautious in their trading.

As updated on March 3, 2020, the company commands a huge market capitalisation of $3 151 683 136 and a share price of 5 028, 18 cents.

Samuel Matsekete is the current chief executive officer.

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