UAP-Old Mutual Group and Fountain Enterprises Programme (FEP) Holdings, a diversified investment company, have signed a partnership agreement that enables the insurance company tap FEP Holdings network across 44 counties.
Through the partnership, FEP Holdings seeks to generate over Ksh70 million in revenues from about 10,000 members next year, and grow by at least 50% every year.
The new arrangement will see UAP-Old Mutual Group leverage on FEP Holdings members, while the investment company through FEP Insurance Agency will handle the alternative market channel delivery. FEP Holdings has about 200,000 members 70,000 of whom have invested in the company. The investment company is one of the largest “chamas” in the country with share capital of Ksh4.8 billion.
The two have developed co-branded medical and general insurance products that will see FEP members benefit from discounted rates of up to 7.5% on policy premiums. Under the partnership FEP members will need only go to a UAP Old Mutual Office to benefit from discounted rates.
“We see this as a great opportunity to grow our range of products as well as a strategic entry path to finally venture into insurance brokerage. FEP Insurance Agency will greatly benefit from UAP’s marketing support,” said Mr Maurice Korir, the FEP Holdings Chief Executive Officer.
The current product offering for FEP Holdings’ clients include the motor, home insurance, personal accident and medical Insurance for individual clients. The understanding is that UAP-Old Mutual regional offices shall be able to book businesses for FEP Holdings under FEP Insurance Agency, said Mr James Wambugu, the Group Managing Director-General Insurance of UAP-Old Mutual Group.
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UAP-Old Mutual Group will offer FEP Holdings the office representation in the counties where investors and customer register and present their insurance claims, while FEP Holdings will offer the insurer an extra footprint in the counties.
He said the partnership was part of the investment company’s plan to channel its energies towards beefing up existent business lines as opposed investing in new ventures. “This should not be interpreted to mean that we are risk averse, we are avoiding spreading ourselves too thin,” he added. “FEP insurance has disengaged from running its own physical offices and is committed to the new delivery model.”
