Jubilee chairman Nizar Juma. FILE PHOTO | NMG The Insurance Regulatory Authority (IRA) has approved an application by Jubilee Holdings to split its insurance businesses to increase efficiency and management focus, with the company creating two new subsidiaries to house medical and general underwriting business.
Operations of the Nairobi Securities Exchange-listed firm had been run under its fully-owned subsidiary Jubilee Insurance Company of Kenya Limited (JICKL).
In the application, JICKL said it would transfer its medical insurance business to the newly created Jubilee Health Insurance Limited. JICKL is also spinning off its general insurance business to the newly formed Jubilee General Insurance Limited.
The transactions, which have been approved, are to be completed retrospectively and will cover insurance contracts in existence as of December 31, 2018.
“The Insurance Regulatory Authority approves the transfer of the medical insurance business following the scheme of transfer fated December 31, 2018, between The Jubilee Insurance Company of Kenya Limited (transferor) and Jubilee Health Insurance Limited (transferee),” IRA Chief Executive Godfrey Kiptum said in the latest Kenya Gazette.
He issued a similar approval with regard to the general insurance business.
Jubilee chairman Nizar Juma told the Business Daily in an earlier interview that JICKL would now focus on pensions and life insurance which is long term in nature. He added that the various subsidiaries would ultimately be owned by Jubilee Holdings, which is the publicly-traded entity.