Allianz completes acquisition of controlling stake in Jubilee General Insurance

Global general underwriter Allianz has completed the acquisition of 66 per cent stake in Jubilee Holdings general insurance business in Kenya.

The completion of the stake sale follows the capture of requisite regulatory approval.

Following the acquisition, the merged entity in which Jubilee still controls a minority 34 per cent stake will be renamed to Jubilee Allianz General Insurance Limited.

The transaction is part of a wider Ksh.10.8 billion ($100 million) deal which will also see Allianz acquire Jubilee’s general insurance businesses in Uganda, Tanzania, Burundi and Mauritius.

Allianz Africa Chief Executive Officer Coenraad Vrolijk expects the transaction to provide leverage for the pair to expand the general insurance business class in the region.

“We are vert excited about Jubilee’s span, its distribution reach and network around the country. Together, we feel this combination can help grow the general insurance franchise in Kenya and in other markets,” he said.

The pair of firms is expected to subsequently work on the integration of operations including combined staff training before the unveiling of its new brand.

Further, Allianz is expected to close out requisite regulatory approvals in the acquisition of Jubilee’s general insurance in four other markets later in 2021.

Jubilee Holdings Limited (JHL) is expected to leverage the deal to expand its hold on the region’s general insurance business including potential entries to markets such as Ethiopia.

JHL Chairman Nizar Juma expects the transaction to position the company for future growth opportunities in an increasingly digitized world.

“We are gaining a great deal as we near our next stage of growth which will be exponential. We want to become a digital company selling insurance and not an insurer using digital platforms,” he said.