The Abraaj Group has sold its 13.6% stake in UAP Holdings, a pan-African insurance holding company, to Old Mutual, a London-listed international investment, savings, insurance and banking group.

In March 2012, Abraaj invested, through one of its Funds, in UAP alongside Africinvest and Swedfund, using a convertible debt instrument.

Simultaneously with a limited public offer conducted in November 2012, Abraaj converted its instrument into equity shares in the Company.

Davinder Sikand, Partner at The Abraaj Group, said: “We invested in UAP based on the Company’s strong brand and well established business lines. With a surge in demand driven by the rapid expansion of a young, urban middle class across Sub-Saharan Africa, UAP has developed in key African markets, and is well positioned to lead the insurance sector in the region. The team has a clear vision for the Company’s further establishment as a leading pan-African insurance firm, and we look forward to seeing its continued growth.”

UAP has been operating in Sub-Saharan Africa since 1977 and its general insurance subsidiaries in Kenya, Uganda, Tanzania, Rwanda and South Sudan, as well as an insurance brokerage arm in the Democratic Republic of Congo, hold dominant market positions.

UAP’s services include life insurance, general insurance, health insurance, premium financing services and investment management services.

Abraaj worked closely with UAP’s board and management team to expand the Company’s regional footprint.

Over the course of Abraaj’s investment, the Company’s gross written premium and book value increased at compound annual growth rates (CAGRs) of 25.5% and 18.8%, respectively.

UAP also expanded organically into Rwanda and via an acquisition into Tanzania.

In addition, UAP grew its investment portfolio, completing an office park in Uganda and a residential building in South Sudan.

Construction of a landmark 31-story building in Nairobi is at an advanced stage, as is development of an office building in South Sudan.

As part of Abraaj’s commitment to integrating environmental, social and governance considerations into its partner companies, the Group worked closely with the Company’s board and management to strengthen UAP’s governance, including developing an improved reporting platform and business intelligence tools to enhance data visibility.

Dr Joseph B. Wanjui, Chairman of UAP-Old Mutual Group, said: “Abraaj played an important role in developing UAP’s business, enhancing corporate governance and positioning the Company for further growth. Our partnership created many opportunities for UAP and we take this opportunity to thank Abraaj for their support.”

Abraaj has been investing in Africa for more than a decade, deploying approximately $3bn across the continent.

In East Africa alone, Abraaj has over 19 private equity investments, with an active portfolio in Kenya, including dairy company Brookside Dairy and cement company Athi River Mining.