KENYA – German multinational financial services company Allianz SE, one of the world’s leading insurers and asset managers, has completed the acquisition of a 66% stake in Jubilee Holdings general insurance arm in Kenya making it the majority shareholder.
The purchased stake represents 1,522,622 ordinary shares acquired from Jubilee Holdings Limited which now retains a 34% shareholding in the company.
In a statement sent to the press, the German financial services provider expects to complete the acquisition of Jubilee General Insurance businesses in Tanzania, Uganda, Burundi, and Mauritius in due course.
The acquisition follows the execution of an agreement signed on September 29, 2020, whereby the German company agreed to acquire the majority shareholding in the short-term general (property and casualty) insurance business operations of JHL in in five countries in Africa, namely, Kenya, Uganda, Tanzania, Burundi and Mauritius.
Upon completion of corporate filings, the new business will operate as “Jubilee Allianz General Insurance Limited”.
The transaction is the second direct investment in the country by the German multinational, after establishing an Insurance Company in Kenya as a greenfield operation in 2014.
“Alone and together with the recent acquisitions in leading African markets of Nigeria and Morocco, this transaction is a reflection of Allianz’s long-term commitment to Africa and fits with our ambition to gain leadership positions in key markets in the continent,” said Coenraad Vrolijk, Allianz Africa Regional Chief Executive Officer.
Jubilee and Allianz will collaborate to expand and broaden insurance market 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.
“With the recent acquisitions in leading African markets of Nigeria and Morocco, this transaction is a reflection of Allianz’s long-term commitment to Africa and fits with our ambition to gain leadership positions in key markets in the continent”Coenrad Vrolijk – CEO Africa Region, Allianz SE
“We are pleased to embark on the first step of our strategic partnership with Allianz, which will support Jubilee’s ambition to increase insurance awareness and accessibility across East Africa by providing innovative, affordable, and technically advanced property and casualty insurance products to consumers across the region,” Nizar Juma, Jubilee Holdings Limited Chairperson
The two companies will continue to work together to finalize the acquisitions for the businesses in Tanzania, Uganda, Burundi and Mauritius.
In September 2020, Allianz announced a partnership that will see it acquire controlling stakes in five East African general insurance companies, all of which belong to Jubilee Holdings Limited, the region’s largest insurance group.
The deal valued at US$101 million would see the two firms create the Jubilee Allianz General Insurance Ltd in the five African countries where Jubilee Insurance currently operates.
JHL will retain ownership of its life and pensions operations and its medical insurance business in Kenya, Uganda and Tanzania.
The transaction will see Allianz acquire the businesses for US$101 million, with JHL retaining a minority stake.
Founded in Kenya in 1937, JHL is a multinational financial services holding company with gross written premiums of US$353 million.
Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals, and insights from Africa’s business, economy, and more. SUBSCRIBE HERE