Allianz Acquires Controlling Stake in Jubilee Holdings For Ksh10.8 billion

Allianz, Germans’ leading insurers, and asset managers on Tuesday said it has entered into a strategic partnership to acquire a majority stake in East Africa’s largest insurance group Jubilee Holdings.

In the proposed partnership structure, Allianz will acquire controlling stakes in Kenya, Tanzania, and Uganda as well as the short-term insurance segment in Burundi and Mauritius. businesses for a total consideration of Ksh 10.8 billion (EUR 84 million, USD 100 million) while JHL will retain a significant minority stake. 

JHL’s subsidiary in Kenya, Jubilee General Insurance Limited is the future joint venture company that 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. 

 According to Jubilee Holdings,  on a preliminary Pro-forma basis, these general insurance companies represent 12.3 percent of JHL’s total consolidated net assets of Ksh 32.3 billion (EUR 252 million, USD 299 million) as at 30 June 2020.

Jubilee Holdings Limited East Africa’s largest insurance group, and @Allianz , one of the world's leading insurers and asset managers, have signed an agreement to establish a strategic partnership in the five African countries where Jubilee Insurance currently operates. pic.twitter.com/cULlNSBNBd

— Jubilee Insurance (@JubileeInsKE) September 29, 2020

“We are very pleased with this historic development for Jubilee Insurance,” said JHL Chairman Nizar Juma. He added, “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.’’

“We are excited to begin the process of marrying the best of Jubilee and Allianz together in each of these countries and in so doing to establish Allianz as a meaningful presence in East Africa,” concluded Nandini Wilcke, Regional Head of Mergers, Acquisitions and Transformation and General Counsel of Allianz Africa.