Jubilee shareholders agree sale of stake in subsidiaries

Jubilee Holdings #ticker;JUB shareholders on Tuesday approved the sale of majority stakes in regional general insurance subsidiaries to German conglomerate Allianz SE.

The shareholder approval was made during a virtual annual general meeting that also confirmed the payment of Sh652.3 million dividend payout for the 2019 performance. Shareholders were paid the final dividend on July 24 before the AGM due to the State ban on large physical gatherings that scuttled AGMs.

Allianz will acquire controlling stakes of between 51 percent and 66 percent in Jubilee’s general insurance units in Kenya, Uganda, Tanzania and its short-term general and medical insurance business in Burundi and Mauritius.

There will however be no change in the ownership of the life and medical businesses in Kenya, Uganda and Tanzania.

Jubilee Holdings group chairman Nizar Juma said the deal will help the regional insurer grow its market share by riding on shared expertise to realise best practice in underwriting and claims processing.

“With Allianz, we have identified a strategic partner whose strategic objectives and vision for the general business are closely aligned with those of Jubilee, and together we intend to grow both the market and our joint market share,” he said.