Jubilee gets CAK nod to acquire Allianz's medical insurance unit

The competition watchdog has given Jubilee Health the greenlight to unconditionally acquire Allianz Insurance Company of Kenya's medical insurance business.

In a statement yesterday, the Competition Authority of Kenya (CAK) approved the transaction, paving the way for the enhancement of a partnership that began in 2020.

Jubilee Health is wholly owned by Jubilee Holdings, which also controls Jubilee Life Insurance Ltd and Jubilee Financial Services Ltd.

CAK noted that the transaction is a merger rather than an acquisition as Jubilee Health will only take over the control of the medical insurance business.

"The post-merger shareholding will not change since the transaction involves the acquisition of the business, not share capital," said CAK.

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Allianz Insurance Company's medical insurance business, which is being acquired, forms part of the business of Allianz Insurance Company of Kenya.

Allianz Insurance is incorporated in Kenya as a wholly-owned subsidiary of Allianz Africa Holding Gmbh, which is, in turn, owned by Allianz SE, a listed entity on the Frankfurt Stock Exchange in Germany.

The analysis by the competition watchdog also found little risk of the merger resulting in a dominant outfit that would limit competition in the medical insurance market in Kenya.

Data from the Insurance Regulatory Authority indicates that Jubilee Health and the Allianz medical insurance business had a market share of 18.48 per cent and 0.23 per cent respectively as of December 2020.

Their combined market share is 18.71 per cent.