Jubilee Holdings Limited (JHL) has sold at least two thirds stake of its business ventures to global insurance giant Allianz for Ksh10 billion ($100 million).
Allianz which operates 12 companies locally is expected to merge its local general insurance outfit to that of JHL across East Africa and in Burundi and Mauritius.
However, Jubilee will retain the control of its life and health business in the deal.
“We’ve had so many international companies wanting to merge with us but we feel this was one transaction with an overall benefit to Jubilee Holdings,” said JHL Chairman Nizar Juma.
Nizar says the sale of the stake does not however represent a pause to the company’s desired acquisitions of smaller underwriters in the country.
“Our desire to acquire other companies will not stop or slowdown. If anything, our acquisition strength will be increasing from this transaction,” he added.
On his part, Allianz Africa Regional CEO Coenraad Vrolijk says the deal will enhance its presence in the region and continent.
“We have been on the continent since 1912 but have only started looking at Africa more seriously in 2015. We’ve been looking at how to become more meaningful,” said Vrolijk.
Allianz is the world’s largest general insurance underwriter and is headquartered in Germany. In 2019, the Group recorded Ksh18 trillion in revenues.
The sale will be effected upon a nod from JHL shareholders, the Capital Markets Authority (CMA), the Insurance Regulatory Authority (IRA) and the Competition Authority of Kenya (CAK).