Allianz strikes $100m deal to acquire five East African P&C insurers
Global insurer Allianz has signed a $100 million deal to acquire five East African general insurance companies as part of a strategic partnership with Kenya-headquartered insurance group Jubilee Holdings.
The partnership, which will require regulatory approvals in the five markets, covers Jubilee's property & casualty insurance business in Kenya, Tanzania and Uganda as well as the short-term insurance segment in Burundi and Mauritius.
Allianz will acquire controlling stakes in each of these businesses for total consideration of KES 10.8 billion ($100 million) while Jubilee will retain a minority stake.
Additionally, Jubilee’s subsidiary in Kenya will acquire the business of Allianz Insurance Company of Kenya.
Jubilee will retain ownership of its life and pensions operations and its medical insurance business in Kenya, Uganda and Tanzania.
Founded in Kenya in 1937, Jubilee is said to be the largest insurer in East Africa and a general insurance market leader in the Ugandan and Tanzanian markets, with gross written premiums of KES 38.2 billion ($353 million.
Through the partnership, Jubilee Insurance and Allianz aim to jointly expand and broaden insurance markets across East Africa.
Furthermore, Allianz hopes the partnership will foster synergies with its existing investments like Africa Re, BIMA and Safeboda, which currently have operations in many African markets.
Coenraad Vrolijk, regional CEO and regional executive board member of Allianz Africa, said: “Allianz is a leading insurer and investor in key markets in the CIMA (Conférence Interafricaine des Marchés d’Assurance) zone and enjoys strong positioning in Morocco, Nigeria and Ghana. We are keen to enter these key East African markets with substantial market share at the outset and JHL is the best partner to help us achieve this ambition in East Africa.
"We believe this partnership will foster growth in these markets by delivering innovative solutions and superior quality service made possible by the combined expertise of both organisations.”
Jubilee chairman Nizar Juma added: “We are very pleased with this historic development for Jubilee Insurance. Over the past decade, we have been approached by a number of international insurers looking to partner with Jubilee to expand into East Africa.
"With Allianz, we have now identified a partner whose strategic aims are aligned to JHL’s and whose expertise in the general insurance business is able to enhance the range and depth of products and risk management solutions that we can offer to our customers."
