Africa: Allianz and Jubilee Insurance forge strategic partnership
Source: Middle East Insurance Review | Nov 2020
East Africa’s leading insurance group Jubilee Holdings Limited (JHL or Jubilee Insurance) 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 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 KES10.8bn ($99.4m) while JHL will retain a significant minority stake. JHL’s subsidiary in Kenya, Jubilee General Insurance 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% and 66% in each company. On a preliminary pro-forma basis, these general insurance companies represent 12.3% of JHL’s total consolidated net assets of KES32.3bn as at 30 June 2020.
Through this partnership, Jubilee Insurance and Allianz aim to jointly expand and broaden insurance markets across East Africa, leveraging Jubilee Insurance’s deep regional knowledge, extensive networks and brand reputation with the global expertise and capacity of the Allianz Group. In addition, the partnership will foster synergies with existing Allianz investments like Africa Re, BIMA and Safeboda, which currently have operations in many African markets. M
KES1 = $0.01