Allianz has completed the purchase of a 66 per cent stake in Jubilee General Insurance Limited in Kenya from the parent company Jubilee Holdings, which will retain a 34 per cent stake in the business.
This is the first of several similar regional transactions.
The Nairobi Securities Exchange-listed insurer signed an agreement to sell stakes ranging from 51 per cent to Sh66 per cent in its general insurance subsidiaries in Kenya, Tanzania, Uganda, Burundi and Mauritius for a total of Sh10.8 billion.
“Allianz, one of the world’s leading insurers and asset managers has become the majority shareholder in Jubilee General Insurance Limited in Kenya,” Allianz and Jubilee said in a statement yesterday.
“Following this acquisition, Jubilee General Insurance Limited in Kenya is now a company of the Allianz Group and upon completion of corporate filings will operate as Jubilee Allianz General Insurance Limited.”
The deal is Allianz’s second direct investment in the country, after establishing Allianz Insurance Company of Kenya Limited as a greenfield operation in 2014.
Jubilee will receive Sh7.75 billion in the deals with Allianz while Sh3 billion will be invested in the operating businesses in Kenya, Uganda, Tanzania, Burundi and Mauritius.
“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,” Jubilee’s chairman Nizar Juma said in a statement.
Allianz and Jubilee said they will continue to work together to finalize the acquisitions for the businesses in Tanzania, Uganda, Burundi and Mauritius.
Jubilee says that retaining minority stakes in the general insurance businesses will give it exposure to their future growth opportunities.