Jubilee to acquire seven firms in expansion plan

By NICHOLAS WAITATHU

NAIROBI, KENYA: Jubilee Holdings Limited will acquire seven new companies in 12 countries in Africa as part of its bigger expansion business strategy. 

Chairman Nizar Juma announced Wednesday that plans are underway to expand business in East, Central and West Africa in the current financial year.

“We are in talks with three companies already, one in the local market, another one in the East Africa Community and the other is located outside the East Africa Community region. Our intention is to expand our market share in Africa and thus benefit from the untapped potential,” said Juma.

He added, key principles to be considered in the new companies to be acquired include a turnover of between Sh1 billion and Sh2 billion, be institutions with exposure in over one market and sound track record.

 Jubilee is the largest insurance company in East Africa. The company business in Mauritius grew by 58 per cent and Jubilee Burundi improved by 16 per cent in gross written premiums in 2013, compared to the same period in the previous year.  Juma stated that the action is informed by the need to grow insurance business locally and in the region.

“We are not interested in mergers but will grow our business portfolio through acquisition of already existing business. This will give us an upper hand in developing and exploiting opportunities in the being tapped market,” Juma added. 

Juma disclosed the new intentions during the release of the financial results Wednesday at a Nairobi hotel.   The company announced a 17 percent increase in its pre-tax profits to Sh3.15 billion up from Sh2.69 billion in the previous year. 

Gross written premiums increased by 16 per cent to Sh23.42 billion from the Sh20.25 billion recorded in 2012.

Juma attributed the results to among others, innovative product development strategies and enhanced relations with intermediaries.