Jubilee insurance sells majority stake to Germany’s Allianz Group

Jubilee insurance sells majority stake to Germany’s Allianz Group

Currently, the regional insurers commands the largest market share in Uganda’s general insurance business Kampala, Uganda | ISAAC KHISA | Regional insurer, Jubilee Holdings Ltd, is selling between 51% and 66% stake of its operating subsidiaries engaged in short term general insurance business across the region to the Munich-based Allianz Group for Kshs10.8bn.

Jubilee Holdings Ltd said it is selling its general insurance units in Uganda, Kenya, Tanzania, Burundi and Mauritius but retain full ownership of its life and health insurance businesses except in Burundi and Mauritius.

Nizar Juma, the company’s chairperson said on Sept. 29 that the operating subsidiaries are subject to the transaction accounts for only 12.3% of its consolidated net assets worth Kshs32.3bn as at June.30, 2020.

He said the transaction will also include transfer of general insurance business currently undertaken by Allianz’s subsidiary in Kenya, Allianz Insurance Company of Kenya, to Jubilee General Insurance.

“We are very pleased with this historic development for Jubilee Insurance,” he said. “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.”

The transaction, however, is subject to approval from shareholders, completion of restructuring of JHL subsidiaries in Uganda and Tanzania into separate general insurance entities and obtaining regulatory approvals from the Capital Markets Authority, Insurance Regulatory Authorities in each of the five countries and local and regional competition authorities.

For that, the insurer has advised investors to exercise caution when dealing in JHL’s shares on the Uganda Securities Exchange, Nairobi s Securities Exchange and Dar es Salaam Securities Exchange.

Coenraad Vrolijk, Regional CEO and Regional Executive Board Member of Allianz Africa said the insurer believes the partnership will foster growth in their markets by delivering innovative solutions and superior quality service made possible by the combined expertise of both organizations.

Allianz, with its headquarters in Germany, serves more than 100 million retail and corporate customers in more than 70 countries worldwide and has over a century of history in Africa, where it has built a meaningful footprint across the continent.

It is currently present in 12 countries in Africa and serves customers in 49 African markets. Globally, Allianz achieved total […]

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