On September 29, 2020, Jubilee Holdings Limited (“JHL” or “Jubilee Insurance”), the largest insurance group in East Africa, and Allianz, one of the world’s leading insurers and asset managers , signed an agreement to establish a strategic partnership in the five African countries in which Jubilee currently operates. A signing ceremony took place today in Nairobi, marking the start of this strategic partnership and at which Oliver Baete, CEO of Allianz SE and Sultan Ali Allana, Director of the Aga Khan Fund for Economic Development (AKFED) and Head of Financial Services, participated remotely.
The partnership covers the non-life insurance branch (also known as non-life insurance) in Kenya, Tanzania and Uganda, as well as the short-term insurance segment in Burundi and the Island. Maurice. JHL will maintain its life and retirement businesses as well as its health insurance businesses in Kenya, Uganda and Tanzania. In the proposed partnership structure, Allianz will acquire majority stakes in each of these entities for a total amount of 10.8 billion KES (84 million Euros, 100 million USD), while JHL will retain a significant minority stake. .
“We are very proud of this historic development for Jubilee Insurance,” said Nizar Juma, President of JHL. He added, “Over the past decade we have been approached by a number of international insurers seeking to partner with Jubilee to expand into East Africa. With Allianz, we have now found a partner whose strategic objectives are aligned with ours, and whose expertise in the non-life insurance sector is able to bring an improvement to our product range and to the quality of risk management solutions that we can offer our clients ”.
“Allianz is one of the main insurers and investors in the key markets of the CIMA (Inter-African Conference of Insurance Markets) zone and enjoys a strong positioning in Morocco, Nigeria and Ghana. We are eager to enter these key East African markets with a substantial market share from the start and JHL is the best partner to help us achieve this ambition ”, said Coenraad Vrolijk, Regional Managing Director and member of the Allianz Africa Regional Executive Committee. He continued: “We believe that this partnership will promote growth in these markets by providing innovative solutions and superior service thanks to the combined expertise of the two organizations”. Allianz brings 130 years of insurance experience to this partnership as well as a long-standing presence on the African continent.
Additionally, the partnership will foster synergies with existing Allianz investments such as Africa Re, BIMA and Safeboda, which are currently active in many African markets. It will also provide the opportunity to deploy Allianz’s global insurance solutions to support growing multinational and cross-border businesses in East Africa. “Allianz has expertise on a wide range of clients and insurance needs. As our corporate clients expand outside of the East African region, they need an insurer who can provide expertise and comprehensive and effective solutions to all of their insurance needs, with the best underwriting and complaints handling practices, ”said Julius Kipngetich, Regional Managing Director of JHL. In addition, the partnership will allow Jubilee Insurance to draw on Allianz’s recognized expertise in the areas of personal insurance, digital and microinsurance deployed in several developing markets around the world.
“We look forward to combining the best of Jubilee and Allianz in each of these countries while allowing Allianz to acquire a significant presence in East Africa,” concluded Nandini Wilcke, Regional Director of Mergers, Acquisitions and of Transformation and Secretary General of Allianz Africa.
This strategic partnership will also enable JHL to offer innovative, affordable and technically sophisticated products to a growing segment of the regional population, thus supporting the ambition to increase awareness and accessibility of insurance. Jubilee will continue to serve its life and health insurance clients with a greater focus on these rapidly growing lines of insurance in core markets.
JHL’s Kenya subsidiary, Jubilee General Insurance Limited, is the future joint venture that will also acquire Allianz’s company in Kenya, Allianz Insurance Company of Kenya Limited. This transaction, which requires regulatory approvals in the five markets concerned as well as a restructuring of JHL’s subsidiaries in Uganda and Tanzania into separate non-life units, will allow Allianz to become co-shareholder alongside JHL in five non-life subsidiaries of the Group. JHL – by holding between 51% and 66% in each company.
On an estimated basis, these non-life companies represent 12.3% of the total consolidated net assets of JHL, for a total of 32.3 billion KES (252 million Euros, 299 million USD) as of June 30, 2020. With its head office in Germany and more than a century of history in Africa, Allianz has more than 100 million individual and business customers in more than 70 countries around the world, and continues to build and develop its presence in across the continent. The group is currently present in 12 African countries and provides its services to its clients in 49 African markets. Globally, Allianz achieved a total turnover of 142 billion Euros (18 trillion KES, 14 billion USD) and an operating profit of 11.9 billion Euros (1, KES 5 trillion) in 2019.
Founded in Kenya in 1937 by Aga Khan Development Network (AKDN), JHL is a multinational financial services holding company operating in Kenya, Uganda, Tanzania, Burundi and Mauritius. It is now affiliated with the Aga Khan Fund for Economic Development (AKFED). JHL is the largest insurer in East Africa, and the non-life insurance market leader in the Ugandan and Tanzania markets, as well as regionally in East Africa, with gross written premiums of 38.2 billion KES (299 million Euros, 353 million USD) and pre-tax profit of 5 billion KES (39 million Euros, 46 million USD) for the fiscal year ended December 31, 2019.