Listed Insurance service provider, Jubilee Holdings Limited, is set to receive KES 4.5 billion for the sale of general insurance stakes in Kenya, Uganda, Tanzania, and Mauritius to Sanlam Allianz Africa, a pan-African financial services joint venture formed by South Africa’s Sanlam and global insurer-asset manager Allianz.
The insurer explained that maintaining the partnership no longer made strategic sense, as the newly formed Sanlam Allianz now operates in life and health insurance – business lines that directly compete with its own operations. Exiting the deal allows the insurance group to avoid a conflict of interest and concentrate on strengthening its core business.
In the new agreement, the insurance firm will sell its whole 34% stake in Jubilee General Insurance in Kenya, Uganda, and Mauritius. In Burundi and Tanzania, 19% and 15% of the general insurance stakes will be sold, respectively. The valuation of the transaction stems from a previously signed agreement in a put option, which allowed the underwriter to sell its stake at a predetermined price within a stipulated period.
Jubilee Holdings 2021 Stake Sale
In 2021, the insurer sold the majority of its general insurance stakes in Kenya, Uganda, Burundi, Tanzania, and Mauritius to German conglomerate Allianz SE for KES 10.8 billion. In Kenya, the acquisition was completed in May 2021, in Uganda in October 2021, in Burundi in March 2022, in Tanzania in May 2022, and in Mauritius in September 2022.
The Insurance company received KES 7.75 billion, and the rest was invested in operating businesses. In Kenya, Allianz SE acquired 66% of the general insurance, while Jubilee retained 36%. As a result of the transaction, Allianz Insurance Company of Kenya and Jubilee General Insurance of Kenya were merged into Jubilee Allianz General Insurance Company of Kenya.
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