Old Mutual bought out Oceanic Life from Ecobank in 2013, which marked their entry into Nigeria.
They entered the Nigerian market to build Nigeria’s most valuable business. Now, they are selling their general insurance and life businesses in Nigeria and focusing on infrastructure financing in Nigeria via their investment arm, Africa Infrastructure Investment Managers (AIIM) while ensuring employee retention.
This reads like an internal play for Alpha or returns from a large player seeking growth. And it’s coming at an interesting time. In the past two years, the company has seen tremendous growth.
And raises some interesting questions. What next for Old Mutual? Would there be employee retention?
The new owners – Emple Group – which is supposed to be an investment company managed by experienced Nigerian investors are said to have a view towards retention and that could mean more.
In 2013, Old Mutual made a significant move by acquiring Oceanic Life from Ecobank, which marked their entry into Nigeria.
However, the company has now decided to sell its life business in Nigeria and shift its focus towards infrastructure financing. This new strategy will position Old Mutual’s investment arm, Africa Infrastructure Investment Managers (AIIM), to take advantage of Nigeria’s growing renewable energy and digital space.
With the government ramping up spending on infrastructure, AIIM’s refocus looks like a smart and timely move, providing the company with an excellent opportunity to achieve significant growth and returns. It seems like a well-thought-out internal play for Alpha (returns), driven by the goal of capitalizing on Nigeria’s burgeoning infrastructure market.