Jubilee Insurance and Allianz enter into a general insurance partnership in five East African countries


Jubilee Insurance and Allianz forge general insurance partnership in East Africa. (Credit: Allianz)

German insurer Allianz has agreed to acquire controlling stakes in the general insurance businesses of Jubilee Holdings (Jubilee Insurance) in five African countries for KES10.8bn ($100m).

Jubilee Insurance will retain a considerable minority stake in the businesses.

The resulting partnership between the parties covers the property and casualty insurance businesses in Kenya, Tanzania, and Uganda and also the short-term insurance business in Burundi and Mauritius.

The partnership will combine Jubilee Insurance’s regional knowledge, vast networks, and brand reputation with Allianz’ global expertise and capacity. This will enable the parties to jointly expand and broaden insurance markets in East Africa.

Allianz keen to enter into key East African markets

Allianz Africa regional CEO and regional executive board member Coenraad Vrolijk said: “Allianz is a leading insurer and investor in key markets in the CIMA (Conférence Interafricaine des Marchés d’Assurance) zone and enjoys strong positioning in Morocco, Nigeria and Ghana. We are keen to enter these key East African markets with substantial market share at the outset and JHL is the best partner to help us achieve this ambition in East Africa.

“We believe this partnership will foster growth in these markets by delivering innovative solutions and superior quality service made possible by the combined expertise of both organizations.”

The deal doesn’t include Jubilee Insurance’s life and pensions operations and also its medical insurance business across Kenya, Tanzania, and Uganda.

Jubilee General Insurance, which is the Kenyan subsidiary of Jubilee Insurance, will be the future joint venture company. It will also purchase the business of Allianz Insurance Company of Kenya.

Allianz will hold between 51% and 66% in each of the five general insurance businesses.

Jubilee Insurance’s general insurance subsidiaries represent 12.3% of its total consolidated net assets of KES32.3bn ($299m), as of 30 June 2020, on a preliminary pro-forma basis.

Jubilee Insurance regional CEO Julius Kipngetich said: “Allianz has expertise across a wide spectrum of clients and insurance needs. As our corporate clients expand outside the East African region, they demand an insurer that provides comprehensive and effective expertise and solutions to all their insurance needs, with best practice in underwriting and claims processing.

“On the other end of the spectrum, the partnership enables Jubilee Insurance to draw on Allianz proven expertise in retail, digital insurance, and in microinsurance deployed in several developing markets across the world.”

The deal will need to obtain regulatory approvals in the five markets. The completion of the transaction will also be subject to a restructuring of Jubilee Insurance’s subsidiaries in Uganda and Tanzania into separate general insurance units.