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He has been replaced by Jubilee Holdings Regional CEO Julius Kipng’etich, who will step in as the CEO for Kenyan business on an interim basis.