Allianz has completed an acquisition of 66 percent stake in Jubilee Holdings Limited (JHL), East Africa’s largest insurance group.
The announcement means that JHL retains a 46 percent shareholding in the company.
The acquisition follows the execution of an agreement signed on September 29, 2020, in which Allianz agreed to acquire about 1,522,622 ordinary shares — the majority shareholding in the short-term general (property and casualty) insurance business operations of JHL in five countries in Africa.
These are Kenya, Uganda, Tanzania, Burundi and Mauritius.
Thus, Jubilee General Insurance Limited in Kenya becomes a member of the Allianz Group and upon completion of corporate filings, will operate under the name: Jubilee Allianz General Insurance Limited.
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.
“Alone and together with Allianz’s 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,” said Coenraad Vrolijk, Allianz Africa Regional CEO.
The two Allianz companies in Kenya, Allianz Insurance Company of Kenya Limited and Jubilee Allianz Insurance Limited are expected 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 honour our commitments and deliver the quality of service that Allianz is known for globally,” said Nandini Wilcke, Regional Head of Mergers and Acquisitions for Allianz Africa.
The transaction gives Allianz a bigger platform to offer its wide range of insurance products, from simple digital products to flexible corporate solutions, Vrolijk added.
Nizar Juma, Chairman of JHL said: “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.”
CEO of Allianz Life Ghana, Gideon Ataraire welcomed the news of the acquisition. He said: “Allianz recent strategic acquisitions within the African region are proof of the Allianz Group’s confidence in the burgeoning regional market.”
Allianz and JHL will continue to work together to finalize the acquisitions for the businesses in Tanzania, Uganda, Burundi and Mauritius, the firms said in a statement to newsrooms.