Old Mutual has acquired a 23.3% stake in UAP Holdings, an East and Central African financial services company with a presence in six countries, for KES 8.88 bn ($97.6m).

Ralph Mupita, CEO of Old Mutual Emerging Markets, said: "This investment is another significant step in delivering the Group's aim of becoming an African financial services champion.”

“UAP is an ideal and complementary fit to our existing Kenyan businesses and we look forward to deepening and broadening our relationship in the future."

The consideration will be paid in cash and will be funded from existing Group resources.

In Kenya, UAP has the third largest property & casualty (P&C) market share; the second largest health insurance business; a substantial property investment portfolio and a fast growing life insurance business.

It has established and diverse distribution networks including via brokers; an agency force; direct sales; banc assurance; digital; and via supermarkets.

In Uganda, it has the second largest P&C and health insurance businesses, and the third largest life business.

It also has P&C businesses in Rwanda, Tanzania and South Sudan, and a brokerage business in the Democratic Republic of the Congo.

Old Mutual provides investment, savings, insurance and banking services to more than 16 million customers in Africa, the Americas, Asia and Europe.

Originating in South Africa in 1845, Old Mutual has been listed on the London and Johannesburg Stock Exchanges, among others, since 1999.

In Kenya, Old Mutual serves more than 500,000 customers through its activities in life insurance, asset management and micro-finance.