Companies

Jubilee hires former AIG executive to drive expansion bid

durek

Mike Durek has taken the position of regional senior executive at a time Jubilee says it is in negotiations to acquire at least three insurers including one in Kenya. Photo/Salaton Njau

Jubilee Holdings has hired a former South African chief executive for global insurer AIG to drive its regional expansion plans which include buying out rival firms.

Mike Durek has taken the position of regional senior executive at a time Jubilee says it is in negotiations to acquire at least three insurers including one in Kenya.

Wednesday the company announced a 10 per cent rise in after-tax profit for last year to Sh2.5 billion.

Mr Durek, who has also been the CEO of South Africa’s ACE Insurance — another global insurance firm, headed AIG’s business in the country until February last year.

“We are in acquisition talks with about three or four companies which we aim to buy out by the end of this year,” said Nizar Juma, the chairman for Jubilee Holdings, disclosing that one firm is in Kenya, one in the region and others further away.

The insurer has presence in Kenya, Tanzania, Uganda, Burundi and Mauritius.

Jubilee has also recruited a regional chief finance officer forming the first crop of a regional team that the insurer is stringing together in Nairobi to steer its expansion agenda.

“We are strengthening our regional position and that is why we hired Mr Durek to spearhead these discussions and help us innovate and grow in the markets we are in,” said Mr Juma. Its subsidiaries in Mauritius and Burundi grew by 58 and 16 per cent respectively in gross written premiums last year compared to 2012.

Deal making

Plans to expand into South Sudan this year have now been put on hold due to political instability in the country.

The drive by Jubilee to acquire rival firms is expected to step up deal making in the region’s insurance market, given the fact that it says it is looking as far as West Africa.

Its close rival Britam is in the final stages of buying out Real Insurance which is expected to be completed by next month. Jubilee posted a total income of Sh18 billion, which represents a 26 per cent growth from Sh14.3 billion a year earlier.

READ: Britam taps Mckinsey over Real buyout

Gross written premiums for the year grew 16 per cent to Sh23.4 billion as investment income grew 17 per cent to Sh3.69 billion.

“We are pleased with the 2013 performance and we want to maintain that level in 2014 through the expansion of product lines, investment in technology and expansion into other markets,” the company noted.

Shareholders will get a final dividend of six shillings per share, adding up to a total payout of seven shillings which will see the firm pay out Sh419.2 million, similar to 2012.