Jubilee Insurance and Allianz forge strategic partnership
Jubilee Insurance, 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.
The partnership covers the property & casualty insurance segment in Kenya, Tanzania and Uganda as well as the short-term insurance segment in Burundi and Mauritius. Jubilee 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 a total consideration of KES 10.8 billion (EUR 84 million, USD 100 million) while Jubilee will retain a significant minority stake. Jubilee’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 Jubilee’s subsidiaries in Uganda and Tanzania into separate general insurance units, will result in Allianz becoming co-shareholder alongside Jubilee in five general insurance subsidiaries of the Jubilee 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 Jubilee’s total consolidated net assets of KES 32.3 billion (EUR 252 million, USD 299 million) as at June 30, 2020.
Allianz, with its headquarters in Germany, serves more than 100 million retail and corporate customers in more than 70 countries worldwide and has over a century of history in Africa, where it has built a meaningful footprint across the continent. It is currently present in 12 countries in Africa and serves customers in 49 African markets.
Globally, Allianz achieved total revenues of EUR 142 billion (KES 18 trillion, USD 168 billion) and an operating profit of EUR 11.9 billion (KES 1.5 trillion, USD 14 billion) in 2019.
Founded in Kenya in 1937 by the Aga Khan Development Network (AKDN), Jubilee is a multinational financial services holding company with operations in Kenya, Uganda, Tanzania, Burundi and Mauritius and is now an affiliate of the Aga Khan Fund for Economic Development (AKFED). Jubilee is the largest insurer in East Africa and the general insurance market leader in the Ugandan and Tanzanian markets, as well as regionally across East Africa, with gross written premiums of KES 38.2 billion (EUR 299 million, USD 353 million) and a pre-tax profit of KES 5 billion (EUR 39 million, USD 46 million) in the financial year ended on December 31, 2019.
