Global general insurer Allianz SE has completed the purchase of a 51 percent stake in Jubilee General Insurance Limited in Burundi from the parent company Jubilee Holdings, which will retain a 19 percent stake in the business.
This is the third of several similar regional transactions after the Kenyan parent firm signed an agreement in 2020 to sell stakes ranging from 51 percent to 66 percent in its general insurance subsidiaries in Kenya, Tanzania, Uganda, Burundi and Mauritius for a total of Sh10.8 billion.
The Kenya and Uganda transactions have been concluded.
“Allianz, one of the world’s leading insurers and asset managers, has now become the majority shareholder of Jubilee Insurance Company of Burundi SA after the approval of the Autorité de Régulation de Controles des Assurances (ARCA) – the local insurance regulator of Burundi,” said Allianz and Jubilee in a joint statement on Monday.
Under the deal, Jubilee will retain 19 percent stake in the company, while Diamond Trust Burundi, a subsidiary of Jubilee Holdings, and Unik Investments Burundi retain 20 percent and 10 percent shareholding, respectively.
“The completion of this transaction represents the achievement of a shared commitment within the set timelines,” said Jubilee Holdings Limited chairman Nizar Juma.
“Burundi represents an important step of this integration journey that seeks to build on the strengths of the two entities for the benefit of the insurance industry within the East African region.”
Jubilee expects to receive Sh7.75 billion in the deals with Allianz, while Sh3 billion would be invested in the operating businesses in Kenya, Uganda, Tanzania, Burundi and Mauritius.
The Kenyan insurer said earlier that retaining minority stakes in the general insurance businesses gives it exposure to future growth opportunities.
“The completion of acquisitions of Jubilee General Insurance businesses in Tanzania and Mauritius to follow,” said Allianz.