Jubilee Holdings Ltd announced it is selling between 51 per cent to 66 per cent stake of its operating subsidiaries engaged in short term general insurance business across the region to Allianz Group for about $99.35 million.
The regional insurer is selling its general insurance units in Kenya, Tanzania, Uganda, Mauritius and Burundi while retaining full ownership of its life and health insurance businesses except in Burundi and Mauritius.
Jubilee insurance chairperson Nizar Juma said that the operating subsidiaries are subjects to transaction accounts which are only 12.3 per cent of its combined net assets worth 297.13 million as at end of June this year.
“We are very pleased with this historic development for Jubilee Insurance. Over the past decade, we have been approached by a number of international insurers looking to partner with Jubilee to expand into East Africa. With Allianz, we have now identified a partner whose strategic aims are aligned to JHL’s and whose expertise in the general insurance business is able to enhance the range and depth of products and risk management solutions that we can offer to our customers.” he said.
On his part, Allianz Africa Regional CEO Coenraad Vrolijk says the deal will enhance its presence in the region and continent.
“We have been on the continent since 1912 but have only started looking at Africa more seriously in 2015. We’ve been looking at how to become more meaningful,” he said.
Allianz Group which has its headquarters in Germany serves more than 100 million retail and corporate customers in more than 70 countries around the world. In Africa, it is present in 1 country and serves customers in 49 African markets. Allianz has total revenues of $168 billion globally and an operating profit of $14 billion in 2019.
Jubilee Insurance earlier this year purchase an additional stake in Bujagali Energy Limited in Uganda from technical partners SN Power for $40 million increasing its shareholding in the company from 8.8 per cent to 18.24 per cent.
In Uganda which boasts of having 22 general insurance companies, Jubillee insurance controls the market share with 25.7 per cent, followed up with UAP insurance with 19.6 per cent and Sanlam insurance with 12.5 per cent.