Jubilee Holdings, the parent company of Jubilee Insurance Uganda has entered into a binding transaction in which it will sell a stake of its general business to Germany insurance giant, Allianz.
In a notice released yesterday, Jubilee said Allianz Group would become co-shareholder after acquiring stakes ranging from 51 per cent to 66 per cent in each operating subsidiary engaged in the short term general insurance business in Kenya, Uganda, Tanzania, Burundi and Mauritius at Shs370b.
The notice also said Jubilee would continue to hold significant minority stakes in each of the operating subsidiaries, which are estimated to account for 12.3 per cent of Jubilee Holding’s consolidated net assets worth Shs1.1 trillion as at June.
The transaction, which is subject to shareholder and regulatory approval from all the five countries will also see the transfer of insurance business currently held by Allianz subsidiary in Kenya to Jubilee General Insurance.
Mr Nizar Juma, the Jubilee Holdings chairman, said the partnership is especially strategic as both Allianz and Jubilee aims are aligned.
“With Allianz, we have identified a partner whose strategic aims are aligned to ours and whose expertise in the general insurance is able to enhance the range and depth of products and risk management solutions that we can offer to our customers,” he said.
What it means for customers
The partnership, according to Mr Nizar, will allow Jubilee to offer innovative, affordable and technically advanced products to a growing section of the regional population, supporting the ambition to increase insurance awareness and accessibility.
Jubilee, he said, will continue to serve its life and medical insurance clients with focus on rapidly growing insurance segments across core markets.
Mr Coenraad Vrolijk, the Jubilee regional chief executive officer and regional executive board member of Allianz Africa, said the partnership will foster synergies with existing Allianz investments such as Africa Re, BIMA and Safeboda, which currently have operations in many African markets.
Allianz, which has its headquarters in Germany, serves more than 100 million retail and corporate clients in more than 70 countries and is currently present in 12 countries in Africa but serves clients in at least 49 African markets.