Anglo-South African insurer Old Mutual has revealed plans to expand its operations across Africa and has set aside R5billion to help it do so.

The cash will be spent over the next three to five years to further its growth across the whole of the continent as growth in Africa is one of the company’s key strategies.

The company which has a strong focus on South Africa also posted an increase in profit for 2012. Its preliminary results for the year ended December 31 showed operating profit before tax was GBP1.61 billion compared with GBP1.36 billion in 2011.

Meanwhile, funds under management rose GBP262.2 billion in 2012 from GBP255.6 billion the year before.

Chief Executive Julian Roberts said: “Old Mutual has four strategic priorities: expanding in Africa; developing our business in the fast growing South African markets; building our Wealth business; and growing US Asset management.”

He also said that during 2012 the company’s customer base on the continent, excluding South Africa, had risen 13 percent on the year and most of that growth was found in Zimbabwe and Kenya.

“We believe that the prospects for growth in Africa are underpinned by sustainable, structural factors,” he added.

Old Mutual, which last year bought the life insurance unit of Nigeria’s Oceanic Bank, plans to buy minority and majority stakes in businesses in east and West Africa over the next three to five years.

It is looking to cash in on growing demand for insurance across the region as rapid economic growth fuelled in part by the natural resources boom and increases in consumer spending.

Old Mutual’s London-listed shares have almost doubled over the past three years beating a 22 percent gain for the FTSE 100 share index.