Robert Kennedy College
University of Cumbria
Final Assessment
A Complete Analysis of The UAP Old Mutual group using Available
Assessment Tools
Organizational Behavior – CRKC7001
August 2021
Supervisor
Professor Benedicta Lusk
Contents
1.
2.
Introduction .................................................................................................................................. 3
1.1
Company Overview ............................................................................................................... 3
1.2
The need for analysis ............................................................................................................ 4
1.3
The various assessment tools ............................................................................................... 4
Using The Tools for Analysis ......................................................................................................... 6
2.1
McKinsey’s 7-S Framework Analysis ..................................................................................... 6
2.2
Balanced Scorecard Analysis................................................................................................. 8
2.3
SWOT Analysis ...................................................................................................................... 9
2.4
PESTLE Analysis ................................................................................................................... 10
2.5
Other relevant tools............................................................................................................ 11
3.
UAP Old Mutual Group assessment ........................................................................................... 12
4.
Recommendations ...................................................................................................................... 22
5.
Conclusions ................................................................................................................................. 24
6.
References .................................................................................................................................. 24
References .......................................................................................................................................... 24
1. Introduction
1.1 Company Overview
UAP Old Mutual is a pan African financial service group with its headquarters in Nairobi Kenya with
subsidiaries in the five east Africa countries of Uganda, Tanzania, Rwanda and South Sudan. In
addition to the group’s core business of providing Life and Non-Life insurance products through its
subsidiaries that are geographically located, the group also has a stock brokerage company in Uganda
and two property management companies in Uganda and South Sudan. Furthermore, the group
through its Old Mutual holding and its subsidiaries the group operates the old Mutual Investment
group and the Faulu Micro Finance Bank.
Being one of the largest financial service providers operating and integrated business model in East
Africa Region, the group offers a wide range of insurance, investment, banking and saving solutions
to the market. UAP Old Mutual group came into existence in 2015 after Old Mutual PLC South Africa
acquired a controlling stake in Faulu Micro Finance and UAP Holdings PLC in 2014 and 2015
respectively.
Company vision: UAP Old Mutual Group aspires to be the most trusted lifetime financial partner,
that is passionate about helping clients achieve financial goals. Furthermore, the leadership
reiterates their commits to help generations of their clients to achieve financial goals and to build
prosperity of the societies, business and shareholders they engage with.
Despite the challenges brought about by COVID-19, UAP Old Mutual reported loss before tax of USD
10 million which was and improvement from USD 32 million loss reported in 2019 financial year. This
sustained poor performance has largely been attributed to valuation write downs in property
investment portfolio. Meanwhile during the same period insurance business unit which account for
the largest proportion of the group’s portfolio reported profitable growth. UAP Old Mutual Group
has sustained a strong brand image in the East Africa region and has received recognition in many
fields. In 2019 the group received the Winner Award - General Insurance Company of the year,
runners, Winner Group Life Innovation Award 2019 and Group Life Company of Year Award. In 2012
UAP Old Mutual was recognized jointly by the Financial Times and the International Financial
cooperation as a market leader in championing technology in sustainable finance.
1.2 The need for analysis
In order for organizations to remain true to their mission statements and deliver of set goals,
constant evaluation and gauging performance is critical for its very existence (Richard et al, 2009).
Indeed, an organizations performance is affected by both external and internal factors. Chuthamas
et all (2011), identified several factors both external and internal that affect business success and
which relates to many medium sized enterprises across the world. The need for organizations to
gather timely are relevant performance data is even made urgent with the ever-changing business
environment (Eisenhardt K. M., 2010). The evolution and incorporation of behavioral science in
assessing performance has made it necessary that organizations not only look at quantitative aspects
of the business but also incorporate non-financial performance indicators in evaluating success
(Chavan M, 2009). Furthermore, the output such business performance analysis is vital in helping
both practitioners and researchers in shaping an organizations strategy
Having navigated through a reorganization phase that was brought about by the acquisition of
controlling stake by Old Mutual PLC, UAP Old Mutual Group now faces an uphill task to steer the
business back to profitability and at the same time maintain market leadership position in a very
competitive operating environment.
1.3 The various assessment tools
There exists a wide range business performance measuring tools available for use at the disposal of
researchers and business leaders. Albana B. Q et al (2007) have identified a catalogue of business
performance evaluation tools that are often prioritized for use by business. According to Jorge G.
and Mario R. (2014), using more than one business evaluation tools provides an opportunity for
businesses to have a broad perspective on an organization’s performance. Indeed Nicotine W. (2002)
observed that for effective decision-making managers need more that one set of information.
Nevertheless, as a prerequisite on deciding which aspect of performance an organization desires to
measure, researchers and practitioners must good knowledge of the business, the relevance of the
information being sought and the impact of such information on the business (Dana et all, 2005).
Furthermore, the cost of measuring performance using selected tool or a set of tools should reflect
the desired outcomes.
The output from this business evaluation tools provide valuable insights on the state of the business
which help organizations to shape overall strategy and remain a head of those that don’t. (Rajeev
Sharma et al, 2014). Furthermore, such output provides valuable insights how organizations can
adapt to the ever-changing market place and craft a desirable response to align resource in meeting
set objectives.
In this paper the author attempts to evaluate business performance of UAP Old Mutual Group using
the McKinsey 7-S Framework analysis, the Balanced Score card, SWOT and PESTLE Analysis and
makes recommendation based on currently organizational structure. Furthermore, the Author also
uses financial ratios to compare and contracts overall performance of UAP Old Mutual Group relative
to its peers.
2. Using The Tools for Analysis
2.1 McKinsey’s 7-S Framework Analysis
Thomas Peters, Robert Waterman and Julien Philips with addition input from Richard
Pascale and Anthony G. Athos developed the McKinsey 7-S framework in the early 1980s
(Ravanfar M.M, 2015). Over time this tool has been proved popular in measuring
organizational performance owing to its dynamic application in strategic planning. (Ezgi
Demir, B.K., 2019). At the center of this model is the emphasis on shared value which must
align well with other aspects that influence success of an organization. The other haves
been established as Strategy, Structure, Systems, Style, Staff and Skill.
Figure 1: McKinsey Model
As in illustration above, organizations that aspire to succeed must strive to achieve a
balance between all the seven elements which all start with S. and hence the McKinsey 7S framework (Alshaher A, 2013). The tool further attempts to categorize the seven aspects
into the hard S (structure, strategy and systems) which are easy to measure and the softS (shared values, style, staff and skills) which place emphasis on human elements. The
seven elements are further defined below.
Strategy: Mintzberg, H. (1987), defines strategy as a plan on deliberately action to deal
with a situation. Organizations make plans to respond to the constantly changing external
conditions as well as internal ones. An organizations strategy is informed by key
components which include vision and mission, business goals and plans to achieve the the
set goals.
Structure: As organizations evolve from simple outfits to more complex entities which
may be operating in an ever-changing business environment, there is need to set up
formal structures to coordinate activities various specialized functions. Kuprenas, J.A
(2003) has demonstrated that an organization’s structure is largely informed by its size
and strategy, and has significant impact on the attainment of business goals.
Systems: This comprises of both the formal and informal procedures that supports an
organization to fulfil set mandates. Systems not only encompasses the technological
support aspects to a business such as a new marketing software system but also includes
mechanisms that determines how well an organization can take advantage of existing
opportunities as well make improvements (Clarke, 2019). Indeed, such systems may
include schedule of budgeting and planning meeting, trainings and development,
compensation and renumeration systems etc.
Skills: Merriam Webster dictionary defines skill as; the ability of an individual to use
knowledge effectively and readily in execution or performance of a task. In the context of
McKinney’s 7-S framework, the definition of skill goes beyond focusing on an individual
but also incorporates an organizations capability that help differentiate it from
competition. (Ezgi Demir, 2019).
Style: Chavan, M. (2009) How the top leadership prefers to run a company has huge
implications on its performance. In his work on assessing leadership style Victor Dulewicz
acknowledges that there is no single prescription of leadership styles that can guarantee
superior organization performance but rather application of style depends on the context
in which an organization operates.
Staff. Many organizations acknowledge through rhetoric that their employees are in fact
the most valuable resource they have (Malcom G Petterson, 1998). Staff refers to people
who work for an organization and indulges with issues such as employee recruitment and
onboarding process, commitment and engagement, as well as renumeration and other
aspects of motivation.
Shared values: According to Barry Z. Posner, J.M. (1985), corporate culture has a strong
relationship to an organization’s productivity as well as motivation of individuals that work
for it. Shared values seek to reemphasize the fundamental questions relating to the core
purpose organization, what are values it members cherish and want to communicate to
external partners.
2.2 Balanced Scorecard Analysis
Ten years after the introduction of the McKinsey 7-S framework, the balance scorecard
BCS was developed to enhance the effective of business performance and strategy
formulation (Kaplan and Norton, 2004). Balanced scorecard offers business practitioners
and researchers four key perspectives that relate to an organizations vision and strategy
namely Learning and growth, Customer, Financial and business processes. Indeed, in a
constantly evolving market place and shifts is stakeholder preferences, the need for
business to be rely on performance measures that offer broad perspectives in addition to
the financial elements is essential. (Chavan M, 2009). Furthermore, since through BCS
organizations are able to assess both internal and external components that relates to
performance, the tool provides rich platform to align available resources and
opportunities with a preferred strategy.
Figure 2: Balanced Score Card
Where as BCS has obvious benefits such as providing a multi dimensional approach in
linking business performamce to stratey and can be used in a wide range of organiazation
setup, BSC lacks focus on human resource elements(Jorge Gomes, 2014). In addition BSC
fails to provide valuable insights on competions activity and any advancements in
technology.
2.3 SWOT Analysis
Asghar S. (2004) has presented SWOT analysis as a strategic planning tool that can be used
in analysis both the internal and external factors that are relevant to an organization. In
seeking to identify and understanding internal strength and weaknesses an organization
is better position to chose how best to exploit existing opportunities as well as how to
respond to identified threats.
Strength: relates to a business aspect that positions organization ahead of there peers.
Weakness: is a business aspect that puts an organization in a position of disadvantage
Opportunities: a situation or time that makes it possible for organizations to do something
advantageous.
Threats: an occurrence or feature that presents challenges to an organization.
Figure 3. SWOT Matrix
Illustrated on a 2X2 matrix, SWOT analysis is a vital tool in supporting strategic decisionmaking process by providing a basis to chose which opportunities to exploit based on
identified strength while at the same time choosing to improve on weakness.
Furthermore, with insights provided through a SWOT analysis organization can develop a
response on how to deal with perceived threat choosing to minimize the or avoid them al
together depending on the nature of business.
2.4 PESTLE Analysis
PESTLE analysis is a business planning and evaluation tool that clarifies issues affecting an
organization as political (P), economic(E), social (S), technological(T), legal(L) and
environmental (E). PESTLE analysis largely concerns with external factors that are relevant
in assessing current and future performance of an organization. (JitHaut Tan, 2012).
Understanding PESTLE factors and how they affect businesses helps organizations to take
advantage of existing opportunities while at the same time attempting to minimize
exposure to risks.
Figure 4. PESTLE
Political: Government interventions can have mixed outcomes for businesses operating
in a jurisdiction.
Economic: Existing economic condition influences an organization’s ability to operate
profitably
Social: relates issue about people and culture that may influence and perceptions in a
market.
Technological: evolution of new way of accomplishing tasks through innovation.
Legal: touches on wide aspects on regulation which are relevant to an organization and
its activities.
Environmental: largely concerns with what is happening in the catchment areas in which
an organization operates.
2.5 Other relevant tools
Whereas the four listed tools (McKinsey 7-S framework, Balanced scorecard, SWOT
analysis and PESTLE) are widely used in evaluating business performance and helping
organizations shape strategy, there is additional tool that are often deployed depending
on the information desired. Indeed, in determining which tools are suitable for a particular
purpose consideration should be made regarding the scope and depth of information
being sort (Albana B.Q, 2017). Such decision further depends on nature and size of the
business as well as the overall economy. In trying to establish which business evaluation
tools are mostly preferred by organizations, Albana Q.B, (2017) concluded that SWOT
analysis, benchmarking, PEST analysis, business financial analysis, key success factors
analysis, cost benefit analysis and customer satisfaction analysis are the 10 most used
strategic management and evaluation tools employed by organizations. Finance and
Insurance industry apply insurance ratio analysis to compare how well an organization is
performing compared to industry average. Claim ratio and combine ratio analysis provide
an opportunity for companies like UAP Old Mutual to shape their underwriting strategy
and overall market positioning
3. UAP Old Mutual Group assessment
Beyond the abstract definition of the role of a CEO as providing leadership to an
organization, individual who hold such office are expected to think critically and
incorporate their thoughts in practice (Glick, 2011). In the ever-changing business
environment, leaders must endeavor to gather valuable sets of information before making
critical decisions that shape the strategic direction of an organization (Nicotine, 2002). In
so doing it is imperative that the process of evaluating performance looks at both internal
and external aspects that affect business performance as discussed below in respect to UAP
Old Mutual group.
Using The Mckinsey 7-S Framework
1. Structure
The current UAP Old Mutual group structure is largely an organic bureaucratic structure.
Apart from the shared services, the group has a flat functional structure for its subsidiaries
and the banking business unit. This organizational design is largely influenced by Old
Mutual acquisition of UAP group and the establishment of subsidiaries in four east African
countries. The structure enables UAP Old Mutual to decentralize decision making process
for subsidiaries in respective geographies while at the same time maintaining control from
the head office overseen by the Group chief executive office East Africa Mr. Arthur Oginga.
This approach makes the group to be agile and nimble in responding to innovation needs
in different markets and line of business which are governed by different sets of
regulations.
Figure 5: UAP Old Mutual Organogram
Strategy
Insurance business is the largest contributor to UAP Oldmutual topline and Kenya represent
the bigest market accounting for over 50% of the groups revenue. Whereas UAP Old Mutual
strives to help its customers thrive by eneabling them to achieve their financial goals the
group wants to achieve this by building a solid financial base through its investment arm
and expanding to other markets in the region. In order to increase performance of its
insurance busienss the company management puts emphasis on improved underwriting
practises and trys to replicate the same in other subsidiaries across the region. Owing to
this strategy the group recorded USD 164 million being a 2.1% growth in Net earned
premium compared to previous the previous year despite the COVID 19 pademic presure
on the business.
Systems:
In at attempt to possition itself as the leading pan african financial service provider, UAP
Old Mutual has put in place a robust information technology platform that helps the group
to cordinate operational activities and facilitate effective communication among all
business units located in different geographical locations. Furthermore the intergrated
information system has interfaces that enable external clients to communitate with the
busiess through social media and mobile phone short messaging services- SMS. The UAP
digital platform helps in standaziation of communication and services. At group level UAP
Old Mutual has a robust governance structure with designate chief risk officer, group head
of compliance, group head of legal and company secretary respectively. This setup has
been further necesitated by the fact that the group functions involve overseing different
busness units that are regulated by different agencies. Acknowldging the significant
contribition of insurance business on the groups performance and the need to have
satisfied customers, the groups insurance units have signed service level agreements with
suppliers to ensure smooth and efficient claims settlement process. In 2019 UAP Old
Mutual insurance was awarded the 1st Runners Up – Best Insurance company in technology
application.
Style
UAP Old Mutual takes an assertive position when demostrating demonstrating their
presence in markets they operate in. The UAP Tower is an emposing signature of the
impresive Nairobi city skyline while Nakawa Tower owned by the group is the business
business park in Uganda. Unlike most of the locally owned insurance companies in east
africa, UAP Old Mutual board is constituted by a broad range of individual with different
sets of skills from various nationatities maintaining a pan african outlook. Furthermore with
the and development of young talents, the group prides itself in having a younger
workforce with the avarage age of employes at 34.7 years. UAP Old Group has a strong
focus in promoting enviromental conservation initiative and promotiong the quality of
health care service in east africa region. In 2020 the foundation planted 50,000 trees in an
effort to reduce desertification.
Staff.
The group places emphasis on employee welfare through various initiatives aimed at
maintaining high levels of engagement and focus. The employee welness program provides
a good platform to monitor health conditions and triage cases that need further
observation.
The group operates a transparent performance based compensation
programs that ensure emplyee contributions are rewarded fairly. Additionally, all
employees who have served the company for over 5 years are entitled to mortgage finance
at preferencial rate. The long service awards often done during the end of year staff party
gives recognition to employees who have served the company for longer periods of time.
Furthermore the groups sports day bring together employees from various business units
to foster cohesion and sense of joint purpose.
Skills
Pehaps the most notable reputation of UAP is in hiring experities to incubate and drive
novel business solution. The market leadership of UAP in Health and Agriculture insurance
was largely attributed to hiring of key experties from relevant fields health agriculture then
train them to become insurance experts. Through this approach UAP Old Mutual group has
managed to build a wealth of experince and positioned itself as the ‘’knowledge company’’
in Kenyas insurance landscape.
Shared Values
UAP leadership puts emphasis and a buden on all emplyees to always behalve according to
the highest moral and ethical standards. Acknowldging the unique market and
organizational circumstances in which they operate, the group enspouses a culture of
inclusivity at work and respect for other communities when exploiting opportunities. The
group puts the customer and their needs at the centre of all activities.
2. Balanced scorecard
UAP Old Mutual has an overall goal of being the preferred financial service provider
through establishment of deep and lasting relationships with its clients. The group
purposes to achieve this goal through a strong financial positioning and integrating various
elements of the balanced score card into its strategy.
Financial Performance
Whereas UAP Old Mutual in its quest to become a pan African company has invested
heavily in regional expansion program by opening new branches and subsidiaries over the
last 10 years, there is a strong emphasis on profitability as opposed to volume of business
written. Furthermore, to strengthen its financial position the group maintains a panel of
world class reinsurers to protect the balance sheet from huge financial losses. Additionally,
the company has invested in technology to streamline insurance claim process and hence
minimized incidences of fraud.
Learning and Growth
The group has an operational talent acquisition strategy which includes pre-screening of
candidates, training and onboarding activities of new hires. The group also has an executive
training program for senior management administered by Strathmore University business
school. In an attempt to boost underwriting and technical skills for, the group benefits from
world class subject matter expert training programs from reputable institutions like Swiss
Re and other international reinsurers. The group encourages employees to be bold about
their career goals and at least have one career development conversation per year with
their managers.
The Customer
Despite having a wide range business product, the group place the customer and the center
of their operations. By incorporating technology in their operations, the group operates a
call center that address client issues and an integrated information technology platform
that guarantees efficient interaction with clients through SMS and social media. Each
business. The customer experience manager provides a focal point to which client
complaints are processed.
Internal Processes
Operating in a highly regulated financial services sector, the group has put in place checks
and balances to minimized operational risk exposures that could otherwise cause financial
losses and cost reputation. The group strictly adheres and enforces anti-money laundering
policy and other regulations requirements set by respective statutory bodies. Those in
underwriting practice and other client facing roles within the group are especially
instructed to work with skill and integrity while discharging their duties. Respective
business units have also signed service level agreements with clients and suppliers to
ensure timely delivery of services.
3. SWOT
Strength
1. UAP Old Mutual has a solid financial base with total assets valued at USD 600
million, a steady growing revenue base and an operating expense ratio that
compares favorably to its pears in the market.
2. Strong brand complemented with the coming together of two reputable finance
institutions i.e., UAP Group and Old Mutual Limited.
3. Significant market share in respective subsidiary market usually listed in top 5
financial service companies in revenue and capitalization.
4. Highly skilled work force with competencies ranging from insurance, banking and
investments.
5. Market leaders in adoption and integration of information technology in business
processes
6. Wide range of products that meets need of a broad segment of clients.
Weakness:
1. Revenue generation: Over 50% of revenues are generated in Kenya and from
insurance lines of business.
2. Skills: Limited skills and over dependance on foreign reinsurers in providing
insurance to complex insurance programs and emerging risks.
3. Focus: Broad range of financial products from banking insurance, and investments.
4. Fragmented business units by geography and product that operate in ‘’silos’’
without not communicating with each other
5. Market perception and cultural fit: The group has not managed to shed of the
‘’South African company’’ tag operating in Kenya market.
Opportunities:
1.
Low insurance penetration in east Africa region provides huge potential for growth
2. Access to a huge east African market with an estimated population of 250 million
people.
3. Emerging favorable financial regulations that encourage investment and risk
transfer.
4. Robust regional business environment with good transport and communication
infrastructure that has been hailed as the hub of technology innovation in Africa
5. Favorable economic environment with most countries recording a GDP growth of
above 5% annually.
Threats
1. None coordinated regulatory regimes that slows limits replication of financial
product solutions in respective markets.
2. New and emerging risks like COVID 19 and Climate related risk that threaten to wipe
out financial reserves of insurance companies.
3. Low financial literacy levels that fuel hesitancy in buying insurance or other financial
products.
4. Unstable political environment which fuel violence and conflict hence slowing down
economic activities.
5. Competition: Insurance landscape is highly fragmented with insurance companies
competing on price alone.
4. PESTLE
Political
Whereas democratic space is opening up in the five east African countries in which UAP Old
Mutual Operates, there are varying degrees of political freedoms that often translates in
frequent social tensions that has a direct impact on ease of doing business. Rwanda by far
has a stable political outlook compared to its neighbors and has recoding impressive
economic growth since 2002. On the other hand, the groups leadership and management
anticipated turbulent 2022 financial year for Kenya owing to the upcoming the general
elections which in the past been marked with violence.
Economic
The five countries in Which UAP Old Mutual operate are part of the East African community
economic block which provide a unified market and free movement of people. Access to a
larger market within the same time zone characterized by English as the main business
language provide an opportunity for the group have a better understanding of the
opportunities and challenges affecting their business. There are ongoing discussions on
standardizing some trade regulation to promote economic growth in the region thereby
benefiting pan African organizations like UAP Old Mutual group.
Social
The east African region has a very young population that represents a vibrant and growing
market opportunities for many organizations like UAP Old Mutual. Whereas insurance
penetration and financial literacy is very low, there is a growing number of households that
now have access to education and improved healthcare. Furthermore, there has been
marked increase in use of mobile phone applications to transact business and this trend is
expected to grow especially among young and socially marginalized in society. It is indeed
expected that digital platforms and mobile money transactions will form an important
phenomenon in financial product offering.
Technological
Other than South Africa, Kenya and Rwanda have been cited as the most advance tech
economies in Africa (Chigozie, 2020). Additionally, innovation around mobile digital
platforms are far advance in the East Africa region compared to west or southern African.
This technical advance has positioned Kenya as financial tech incubation hub which benefits
financial service providers such as UAP Old Mutual group.
Legal
Whereas the east African community economic block provides a huge market for growth,
each country has different regulatory regimes that offers unique business environment. This
situation is further compounded the fact that the group offers different products that are
regulated by different statutory bodies in respective countries. Kenya has already approved
use of parametric crop insurance products in protecting farmers against drought while South
Sudan is still at feasibility and assessment stage of the same product.
Environment
Over 70% of East African population dependent on agriculture for food and as a source of
employment. The vulnerability of Agriculture to climate change as well as the increasing
frequency and severity climate related events on agriculture slows down the economic and
trade activity in the region.
5. Insurance performance ratios.
According to 2020 financial results UAP Old Mutual reported an underwriting profit and
combine ratio of 103% being above the recommended industry threshold of below 100%.
Nevertheless, the Kenya industry combine ratio between 2012 and 2018 ranged between
94.0% and 102.2% (Wangui, 2020).
4. Recommendations
Whereas UAP Old Mutual group aspires to be the market leader in lines of business they are engaged
in, the group’s financial performance is mainly driven by insurance line of business mainly originating
in Kenyan market. Further analysis of this business unit reveals that the groups insurance portfolio is
largely constituted by traditional general insurance products like motor and health insurance. The
insurance business has not been successful scaling up innovative initiatives despite the high quality
of its staff and access to technical and reinsurance capacity from globally reputable organizations. As
consequence the group has lagged behind in developing new innovation insurance solutions like
climate insurance and is largely constrained in underwriting large and complex risks.
Furthermore, the many business units within the group which required different skills sets and are
regulated by different institutions makes the group vulnerable to the silo mentality which limits the
groups business unit to perform optimally (Mohapeloa,2017). In order to overcome these challenges
in taking advantage of existing huge market opportunities in the region there is a need for sharing of
information and skills within the group business units. However, the author is also cognizant of the
need to separate some business unit as required by respective regulatory regimes. In order to align
the groups’ objective with the realities outline above, the author recommends an functional
structure that that takes into account the need for autonomy in decision making process in
geographical location while taking advantage of the huge and diverse skill sets within the group
Figure 6: Proposed UAP Old Mutual Organogram
The proposed structure will encourage in autonomy of business in various locations while benefiting
from internal knowledge through product structure. The author anticipates that the structure release
direct reports to the CEO hence giving him/her more time to focus on strategic steering of the group.
Product lines:
1. Focus on few products lines that are profitable or have potential to be major contributors to
companies topline.
Increase insurance profitability
1. Improve insurance profitably by seeking to maintain combine ratio below industry average
through improved underwriting practices and efficient claim processing.
Broaden investment portfolio.
2. Limit investments in real estate and broaden investment portfolio to include other
instruments beyond the east Africa region.
Product development
3. Take a long-term view and steadily increase investments in markets that are currently not
major contributors to the group’s revenue.
4. Open up new markets by offering products that meet client needs such as food and health
while being bold to divest from initiatives that do not offer prospects for growth.
5. Conclusions
In order for UAP Old Mutual to cement is position as a market leader in providing financial
services, a continuous performance evaluation is key to achieving this goal. The information
derived from this process helps business practitioners and researchers to make informed
decision when steering organizations successfully. In addition to the four main tools of business
performance evaluation tools (McKinsey 7-S Framework, Balanced scorecard, SWOT analysis
and PESTLE) outlined in this paper, other relevant tools unique to the industry in which an
organization operates provides further insights on how well it is positioned compared to its
peers. insurance industry provides good insights.
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