Partnership covers general insurance in five East African countries; it aims to expand and broaden the insurance markets across East Africa; transaction is subject to regulatory approvals
Jubilee Holdings Limited (“JHL” or “Jubilee Insurance”) ( www.JubileeInsurance.com ), East Africa’s largest insurance group, and Allianz ( www.Allianz.com ), one of the world’s leading insurers and asset managers, have signed an agreement to establish a strategic partnership in the five African countries where Jubilee Insurance currently operates. The partnership covers the general insurance business (also known as the property & casualty insurance segment) in Kenya, Tanzania and Uganda as well as the short-term insurance segment in Burundi and Mauritius. JHL will retain ownership of its Life and Pensions operations and its Medical insurance business in Kenya, Uganda and Tanzania.
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In the proposed partnership structure, Allianz will acquire controlling stakes in each of these businesses for total consideration of KES 10.8 billion (EUR 84 million, USD 100 million) while JHL will retain a significant minority stake. JHL’s subsidiary in Kenya, Jubilee General Insurance Limited is the future joint venture company which will also acquire the business of Allianz Insurance Company of Kenya Limited.
The transaction, which will require regulatory approvals in the five markets as well as a restructuring of JHL’s subsidiaries in Uganda and Tanzania into separate general insurance units, will result in Allianz becoming co-shareholder alongside JHL in five general insurance subsidiaries of the JHL Group, holding between 51 percent and 66percent in each company. On a preliminary pro-forma basis, these general insurance companies represent 12.3 percent of JHL’s total consolidated net assets of KES 32.3 billion (EUR 252 million, USD 299 million) as at 30 June 2020.
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 revenues of EUR 142 billion (KES 18 trillion, USD 168 billion) and an operating profit of EUR 11.9 billion (KES 1.5 trillion, USD 14 billion) in 2019.
Founded in Kenya in 1937 by the Aga Khan Development Network (AKDN), JHL is a multinational financial services holding company with operations in Kenya, Uganda, Tanzania, Burundi and Mauritius and is […]
