Allianz Signs Deal To Acquire Kes 10.8 Billion Majority Stake in Jubilee Insurance
Global insurer Allianz has announced a partnership that will see it acquire controlling stakes in five East African general insurance companies, all of which belong to Jubilee Holdings Limited, the region’s largest insurance group.
The partnership, which has been finalized but still requires regulatory approval, covers the property & casualty segment in Kenya, Tanzania and Uganda as well as the short-term segment in Burundi and Mauritius.
The deal valued at Kes 10.8 billion will see the two firms create the Jubilee Allianz General Insurance Ltd in the five African countries where Jubilee Insurance currently operates.
JHL will retain ownership of its life and pensions operations and its medical insurance business in Kenya, Uganda and Tanzania.
The transaction will see Allianz acquire the businesses for $100 million, with JHL retaining a minority stake.
Additionally, JHL’s subsidiary in Kenya will acquire the business of Allianz Insurance Company of Kenya Limited.
Founded in Kenya in 1937, JHL is a multinational financial services holding company with gross written premiums of $353 million.
The two groups hope to expand and broaden insurance markets across East Africa by combining JHL’s regional knowledge, networks and brand reputation with the global expertise and capacity of the Allianz.
Furthermore, it’s hoped the deal will foster synergies with existing Allianz investments like Africa Re, BIMA and Safeboda, which currently have operations in many African markets.
“We are very pleased with this historic development for Jubilee Insurance,” said JHL Chairman Nizar Juma.
“Over the past decade, we have been approached by a number of international insurers looking to partner with Jubilee to expand into East Africa.
“With Allianz, we have now identified a partner whose strategic aims are aligned to JHL’s and whose expertise in the general insurance business is able to enhance the range and depth of products and risk management solutions that we can offer to our customers.’’
Coenraad Vrolijk, Regional CEO and Regional Executive Board Member of Allianz Africa, added, “Allianz is a leading insurer and investor in key markets in the CIMA (Conférence Interafricaine des Marchés d’Assurance) zone and enjoys strong positioning in Morocco, Nigeria and Ghana.
“We are keen to enter these key East African markets with substantial market share at the outset and JHL is the best partner to help us achieve this ambition in East Africa.”
Julius Kipngetich, JHL’s Regional CEO, concluded, “Allianz has expertise across a wide spectrum of clients and insurance needs. As our corporate clients expand outside the East African region, they demand an insurer that provides comprehensive and effective expertise and solutions to all their insurance needs, with best practise in underwriting and claims processing.