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.
The partnership covers the general insurance business (also known as the property and casualty insurance segment) in Kenya, Tanzania and Uganda as well as the short-term insurance segment in Burundi and Mauritius.
JHL 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 the businesses for total consideration of $100m while JHL will retain a significant minority stake. JHL’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 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 per cent and 66 per cent in each company.
On a preliminary pro-forma basis, these general insurance companies represent 12.3 per cent of JHL’s total consolidated net assets of $299m) as of 30 June, 2020.
Allianz, with its headquarters in Germany, serves more than 100m 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 $168bn and an operating profit of $14bn in 2019.
