Jubilee Holdings shareholders yesterday approved a long-term strategic partnership with Allianz SE in five countries.
The deal will see the German insurer gain a stake in Jubilee’s short-term general insurance businesses in Kenya, Uganda, Tanzania and its short-term general and medical insurance business in Burundi and Mauritius.
Allianz will become a co-shareholder in five companies that are currently, or to be established, subsidiaries of Jubilee by purchasing controlling interests of between 51 per cent and 66 per cent, in which Jubilee Holdings will remain a significant minority shareholder.
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“With Allianz, we have identified a strategic partner whose strategic objectives and vision for the general business are closely aligned with those of Jubilee, and together we intend to grow both the market and our joint market share,” said Jubilee Holdings Group Chairman Nizar Juma.
He said there will be no change in the ownership of the life and medical businesses in Kenya, Uganda and Tanzania.
Allianz acquired the shareholding at a value of Sh10.8 billion and will see the two firms create the Jubilee Allianz General Insurance in the five African countries where Jubilee Insurance currently operates.
Jubilee Holdings said in the past that the transaction had been in the works for four years and would give both companies a larger foothold in the regional market.