Jerry Anthonyrajah, Chief Commercial Officer at Old Mutual Insure

With the short-term insurance industry rapidly evolving, Old Mutual Insure is using strategic acquisitions to stay ahead of the curve. Its Blue-Sky division has become a key driver of growth and diversification within the group. By targeting niche players and supporting consolidation across the insurance value chain, Blue Sky is helping to reshape an industry grappling with succession challenges, market fragmentation and the pressures of innovation.

For Jerry Anthonyrajah, Chief Commercial Officer at Old Mutual Insure, the role of Blue Sky, its strategic growth arm, is to be an engine for growth. “Our role is to diversify Old Mutual Insure – both in the insurance capabilities we offer and across the value chain,” he says. “That has enabled us to diversify our earnings and incubate high-growth opportunities. “Since launching in 2020, Blue Sky has targeted businesses that complement and expand Old Mutual Insure’s footprint, focusing on strategic, commercial and cultural alignment. Its goal has been to build resilience through diversification, and in doing so, shape the future of short-term insurance.

Successful strategic acquisitions

Two recent acquisitions showcase Blue Sky’s strategic approach. The first is Genric, a specialist in accident and health insurance, which in 2023 became a wholly owned Old Mutual Insure subsidiary. “Genric offers a health insurance product for corporate clients’ employees called Old Mutual Health Solutions, which is more affordable than traditional medical aid,” Anthonyrajah asserts.

The other acquisition that Old Mutual Insure is excited about, is ONE Financial Services a market leader in key insurance classes such as heavy commercial vehicles, which significantly boosted their bottom line. “These acquisitions are not just about financial returns,” he states. “They’re about strategic positioning and filling capability gaps.”

Understanding the industry’s shifting terrain

For Anthonyrajah, consolidation is the most pressing trend reshaping the insurance value chain. “We’re seeing many family-owned SMEs where the founder wants to retire, but doesn’t have a succession plan or buyer,” he explains. “These are brokerages, underwriting agencies and claims services, but there’s not enough institutional capacity to absorb them. That’s where we can step in.” By enabling acquisitions by emerging players, particularly black-owned businesses, Blue Sky can facilitate transformation. “It’s not just about acquiring,” he comments. “It’s about creating opportunities for the next generation.”

Navigating disruption

While generative artificial intelligence (AI) is making waves in the industry, Anthonyrajah offers a pragmatic view. “It’s not about the technology,” he says, “but rather change management. You can scale with AI tools, but what are the human consequences of that? “However, he acknowledges that AI holds promise in areas across the value chain. like surveys, risk assessment and claims handling. “But thoughtful integration, not hype, will be key,” he asserts.

Not just about the numbers

Beyond balance sheets, Blue Sky prioritises strategic and cultural compatibility when acquiring companies. “There has to be a cultural fit,” he argues. “You need alignment on ways of working and that needs to be discussed upfront. “This mindset has helped Blue Sky avoid the common pitfalls of M&A — forced integration, mismatched expectations and loss of operational efficiency.

Bold bets on the future

“Fintech is entering a fascinating chapter,” observes Anthonyrajah. “There’s a palpable shift happening—one that’s encouraging new ideas, deeper collaboration, and a stronger commitment to building sustainable impact. “There’s a window for transformation in this industry and we want to be at the forefront of that.”

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