Africa-Press – South-Sudan. UAP Insurance South Sudan Ltd, a subsidiary of the Old Mutual Group, East Africa, has announced it will run off its operations in South Sudan, with the process expected to take up to 24 months.
The decision, approved by shareholders, follows what the company called “a strategic review”, citing unsustainable market conditions and the need for substantial capital investment beyond the company’s planned resources.
In a statement issued by Managing Director Japheth Omare Omwero, UAP confirmed it will remain operational for existing policyholders until their current insurance periods expire.
The company will honour claims subject to policy terms, with medical and life claims accepted up to 90 days after policy expiry or the claim date, whichever is earlier, and general insurance claims up to 180 days.
However, effective July 3, 2025, UAP will not accept new insurance business or renew contracts during the runoff period.
The announcement comes against a backdrop of legal and operational challenges for UAP in Africa’s youngest nation.
In September 2023, the company faced significant controversy after unlawfully terminating 57 national staff members following a sit-in strike over unequal pay and unfair treatment compared to foreign expatriate colleagues.
The Ministry of Labour ordered UAP to reinstate the staff and revise its salary structure, but the company’s non-compliance led to legal action by the UAP National Staff Association (UNSA).
In February 2023, the High Court issued an arrest order for Omwero for failing to appear in court, though he was later released.
The case, which remains unresolved, saw its final submission scheduled for July 4, 2025, coinciding with UAP’s announcement. The ongoing legal battle and financial strain have likely contributed to the decision to wind down operations.
UAP’s exit marks a significant shift in South Sudan’s insurance sector, raising concerns about the impact on policyholders and employees.
While the company has assured customers it will fulfil its obligations during the runoff period, the closure underscores the challenges of operating in South Sudan’s volatile economic and regulatory environment.
For More News And Analysis About South-Sudan Follow Africa-Press
