From Left: Nandini Wilcke, Regional Head of Mergers, Acquisitions and Transformation and General Counsel of Allianz Africa, Mr. Nizar Juma Jubilee Holdings Limited and Coenraad Vrolijk – Regional CEO and Regional Board Member of Allianz Africa PHOTO | COURTESY Valued at Ksh.10.8 billion ($100 million), the deal will see Allianz acquire about two thirds of Jubilee’s general insurance business across East Africa and in Burundi and Mauritius.
The underwriter is expected to keep its full complement of staff in its general business in what it terms as a smooth transition which will be devoid of redundancies.
The deal now awaits requisite approvals from JHL shareholders, the Capital Markets Authority (CMA), the Insurance Regulatory Authority (IRA) and the Competition Authority of Kenya (CAK).
Regional based insurer Jubilee Holdings Limited (JHL) has agreed to sell a controlling stake of its general underwriting business to global insurance giant Allianz.
Valued at Ksh.10.8 billion ($100 million), the deal will see Allianz acquire about two thirds of Jubilee’s general insurance business across East Africa and in Burundi and Mauritius.
Meanwhile, Allianz which operates 12 general insurance business companies in the region is expected to merge its local general insurance outfit to that of JHL.
Jubilee is meanwhile expected to to retain the control of its life and health business which make up the Group’s other differentiated businesses following recent guidelines to alter the structure of underwriters in Kenya.
JHL Chairman Nizar Juma says the deal which will see its general insurance business renamed to Jubilee Allianz General Insurance represents the firm the opportunity to expand its footprint on the continent.
“We’ve had so many international companies wanting to merge with us but we feel this was one transaction with an overall benefit to Jubilee Holdings,” he said.
The underwriter is expected to keep its full complement of staff in its general business in what it terms as a smooth transition which will be devoid of redundancies.
Nizar says the sale of the stake does not however represents a pause to the company’s desired acquisitions of smaller underwriters in the country.“Our desire to acquire other companies will not stop or slowdown. If anything, our acquisition strength will be increasing from this transaction,” he added.On his part, Allianz Africa Regional CEO Coenraad Vrolijk says the deal will enhance its presence in the region and continent.“We have been on the continent since 1912 but have only started looking at Africa more seriously in 2015. […]
