Allianz, one of the world’s leading insurers and asset managers, has become the majority shareholder in Jubilee General Insurance Limited in Uganda.
This follows the acquisition of a 66% stake in the company, representing 1,522,622 ordinary shares, from Jubilee Holdings Limited (JHL).
JHL is retaining a 34% shareholding in the company.
The acquisition is the execution of an agreement signed on September 29, 2020, whereby Allianz agreed to acquire the majority shareholding in the short-term general (property and casualty) insurance business operations of JHL in in five countries in Africa, namely, Kenya, Uganda, Tanzania, Burundi and Mauritius.
Following this acquisition, Jubilee General Insurance Limited is now a company of the Allianz Group and upon completion of corporate filings will operate as “Jubilee Allianz General Insurance Limited”.
The transaction is Allianz’s second direct investment in East Africa, after establishing Allianz Insurance Company of Kenya Limited as a greenfield operation in 2014.
“Alone and together with the recent acquisitions in leading African markets of Nigeria and Morocco, this transaction is a reflection of Allianz’s long-term commitment to Africa and fits with our ambition to gain leadership positions in key markets in the continent,” stated Coenraad Vrolijk, Allianz Africa Regional CEO.
The two companies of Allianz in Kenya, Allianz Insurance Company of Kenya Limited and Jubilee Allianz Insurance Limited will continue to operate separately until their operations are consolidated into Jubilee Allianz General Insurance Limited, which is subject to regulatory approval.
“All contracts issued by the two companies remain valid and we will continue to honor our commitments and deliver the quality of service that Allianz is known for globally,” commented Nandini Wilcke, the Regional Head of Mergers & Acquisitions for Allianz Africa. “This transaction gives us a bigger platform to offer Allianz’s wide range of insurance products, from simple digital products to flexible corporate solutions,” added Coenraad Vrolijk.
Nizar Juma, Chairman of JHL stated: “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.”
The Regional Chief Executive Julius Kipng’etich says it is sad that they are shedding part of their businesses, but says this will help them participate in the insurance of bigger risks than before.
He says there is a lot of opportunities in Uganda especially in her natural resources, and therefore partnerships are important to be able to take on such investments.
The Insurance Regulatory Authority of Uganda Chief Executive Ibrahim Kaddunabbi Lubega says the coming of Allianz, one of the biggest insurers in the world is timely for Uganda because the country is not attracting big investments that might challenge the strengths of local companies.
But he also looks forward to the professional experience that the partnership brings into the Ugandan industry, as well as the fact that insurance money will remain in Uganda, unlike when local assets are insured abroad.
Allianz and JHL will continue to work together to finalize the acquisitions for the businesses in Tanzania, Uganda, Burundi and Mauritius.
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