Regional insurer Jubilee Holdings and German multinational financial services company Allianz have signed an agreement that will see the latter take a controlling stake in Jubilee’s general insurance business.
The deal valued at Sh10.8 billion will see the two firms create the Jubilee Allianz General Insurance Ltd in the five African countries where Jubilee Insurance currently operates.
Jubilee Holdings Chairman Nizar Juma said yesterday the transaction had been in the works for the past four years and would give both companies a larger foothold in the regional insurance market.
“Over the past decade, we have been approached by a number of international insurers looking to partner with Jubilee to expand into East Africa,” said Juma at the signing ceremony in Nairobi.
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“With Allianz, we have now identified a partner whose strategic aims are aligned to JHL’s (Jubilee Holdings Ltd) 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 partnership covers the general insurance business (also known as the property and casualty insurance segment) in Kenya, Tanzania and Uganda as well as the short-term insurance segment in Burundi and Mauritius.
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 in five general insurance subsidiaries of the JHL Group, holding between 51 per cent and 66 per cent in each company.
JHL will, however, retain ownership of its life and pensions operations and its medical insurance business in Kenya, Uganda and Tanzania.
Allianz is one of the world’s largest asset managers, managing 766 billion euros on behalf of its insurance customers and almost 1.7 trillion euros of third-party assets for investors.
“Allianz is a leading insurer and investor in key markets and enjoys strong positioning in Morocco, Nigeria and Ghana,” said Regional Chief Executive and Regional Executive Board Member of Allianz Africa Coenraad Vrolijk.
“We are keen to enter these key East African markets with substantial market share at the outset and JHL is the best partner to help us achieve this ambition in East Africa,’’ he said.
Allianz is currently in 12 countries in Africa serving customers in 49 African markets.
JHL Regional CEO Julius Kipng’etich said the two firms are open to broadening their new partnership in