Jubilee Insurance and Allianz tie-up

Jubilee Holdings Limited (JHL), East Africa’s largest insurance group, and Allianz have signed an agreement to establish a strategic partnership in the five African countries where Jubilee Insurance currently operates.

The partnership covers the general insurance business in Kenya, Tanzania and Uganda as well as the short-term insurance segment in Burundi and Mauritius. JHL will retain ownership of its Life and Pensions operations and its Medical insurance business in Kenya, Uganda and Tanzania.

In the proposed partnership structure, Allianz will acquire controlling stakes in each of these businesses for total consideration of KES10.8 billion (EUR84 million) while JHL will retain a significant minority stake. JHL’s subsidiary in Kenya, Jubilee General Insurance Limited is the future joint venture company, which will also acquire the business of Allianz Insurance Company of Kenya Limited.

The transaction, which will require regulatory approvals in the five markets as well as a restructuring of JHL’s subsidiaries in Uganda and Tanzania into separate general insurance units, will result in Allianz becoming co-shareholder alongside JHL in five general insurance subsidiaries of the JHL Group, holding between 51 percent and 66 percent in each company. On a preliminary pro-forma basis, these general insurance companies represent 12.3 percent of JHL’s total consolidated net assets of KES32.3 billion (EUR252 million) as at June 30, 2020.