Why Rotich couldn't resist desire to go after M-Pesa Next Story
Apple to undercut popular law-enforcement tool for cracking iPhones Previous Story
You are here  » Home   » Business

Jubilee Insurance to split as new rules kick in

By Otiato Guguyu | Published Fri, June 15th 2018 at 00:00, Updated June 14th 2018 at 22:44 GMT +3
Jubilee Holdings Regional CEO Julius Kipng’etich who will step in as the CEO for Kenyan business on an interim basis. [Wilberforce Okwiri/Standard]

Jubilee Insurance is set to be split into three companies, breaking up the Sh31 billion revenue business to comply with insurance regulations.

Insurance Regulatory Authority (IRA) has asked insurance firms to separate life and business cover in order for each unit to carry its own risk.

“Jubilee Insurance Company of Kenya announces that the Kenya business ahead of the expected regulation will be split into three separate companies subject to regulatory approval before the end of the year into life insurance, medical insurance and general insurance, with each company having its own CEO,” said Jubilee Holdings Chair Nizar Juma in a statement yesterday.

The move will require the company to recapitalise the businesses to carry weighted risk and trigger the appointment of three new principals to head the separate entities. Last year, premiums for the medical business declined 17 per cent to Sh9.6 billion, while general insurance premiums went down three per cent to Sh10.7 billion. Life business is the only one that grew by 22 per cent to 13.7 billion.

The move by Jubilee comes at a time the firm has lost its long-serving chief executive Patrick Tumbo, who has left the insurer for another listed insurer.

He has been replaced by Jubilee Holdings Regional CEO Julius Kipng’etich, who will step in as the CEO for Kenyan business on an interim basis.

Avoid fake news! Subscribe to the Standard SMS service and receive factual, verified breaking news as it happens. Text the word 'NEWS' to 22840


Would you like to get published on Standard Media websites? You can now email us breaking news, story ideas, human interest articles or interesting videos on: [email protected]