Allianz completes acquisition of majority stake in Jubilee General Insurance, Kenya
Allianz and Jubilee Holdings Limited have announced the completion of the previously signed agreement for Allianz to acquire a 66 percent stake in the Jubilee General Insurance Company in Kenya.
The conclusion of the deal now means Allianz, which is one of the world’s leading insurers and asset managers, has become the majority shareholder in Jubilee General Insurance Limited in Kenya.
Following this acquisition, Jubilee General Insurance Limited in Kenya is now a company of the Allianz Group, whose headquarters are in Munich, Germany, and upon completion of corporate filings will operate as “Jubilee Allianz General Insurance Limited”.
Allianz bought 1,522,622 ordinary shares from Jubilee Holdings Limited (JHL) at a value of Ksh. 10.8 billion. JHL will retain a 34 percent shareholding in the company.
The acquisition follows the execution of an agreement signed on September 29, 2020, whereby Allianz agreed to acquire the majority shareholding in the short-term general (property and casualty) insurance business operations of JHL in in five countries in Africa, namely, Kenya, Uganda, Tanzania, Burundi and Mauritius.
The transaction is Allianz’s second direct investment in the country, after establishing Allianz Insurance Company of Kenya Limited as a greenfield operation in 2014.
Commenting on the conclusion of the deal, Coenraad Vrolijk, Allianz Africa Regional CEO said, “Alone and together with the recent acquisitions in leading African markets of Nigeria and Morocco, this transaction is a reflection of Allianz’s long-term commitment to Africa and fits with our ambition to gain leadership positions in key markets in the continent.”
The two companies of Allianz in Kenya, Allianz Insurance Company of Kenya Limited and Jubilee Allianz Insurance Limited will continue to operate separately until their operations are consolidated into Jubilee Allianz General Insurance Limited, which is subject to regulatory approval.
“All contracts issued by the two companies remain valid and we will continue to honor our commitments and deliver the quality of service that Allianz is known for globally,” commented Nandini Wilcke, the Regional Head of Mergers & Acquisitions for Allianz Africa.
Linus Gitahi, a Director at Allianz Kenya said the partnership will enable both organizations to grow together as insurance companies, adding that the deal will enable both companies to share locally and international insights.
On his part, Nizar Juma, Chairman of JHL said the acquisition will create an opportunity for Jubilee Holdings to have a larger foothold in the regional market.
“We are pleased to embark on the first step of our strategic partnership with Allianz, which will support Jubilee’s ambition to increase insurance awareness and accessibility across East Africa by providing innovative, affordable and technically advanced property and casualty insurance products to consumers across the region”.
Allianz and JHL will continue to work together to finalize the acquisitions for the businesses in Tanzania, Uganda, Burundi and Mauritius.
Last year, Jubilee Holdings shareholders approved a long-term strategic partnership with Allianz SE in five African countries.