NAIROBI, Kenya, Sep 29-German insurance firm Allianz has offered Sh10.8 billion in a deal to acquire Jubilee Holding’s General Insurance business, which is two-thirds of the firm’s portfolio.
The proposed transaction pending regulatory approval will see Allianz acquire controlling stakes in Kenya, Tanzania, and Uganda as well as the short-term insurance segment in Burundi and Mauritius, between 51 and 66 percent.
Jubilee Holdings Limited Group Chairman Nizar Juma says the deal will now see Allianz Kenya and Jubilee’s General Insurance company merge to operate as Jubilee Allianz General Insurance Limited.
“We have therefore entered into a deal with Allianz where Allianz is going to merge their Allianz Kenya company into our General insurance company and we will in turn give them majority shares in the Jubilee General Insurance Company,” said Juma.
Juma added that the transaction will be smooth and will not lead to reduced pay or layoff, notices in any of the two companies.
“No person will be made redundant, nobody will get a salary cut, this is going to be a very smooth operation,” Jubilee Holding’s Chairman Nizar Juma said in a briefing.
“I believe the time we spent together in the last five years has given both teams the comfort that this will be a successful partnership in insurance,” said Allianz Regional CEO and Regional Executive Board Member of Allianz Africa Coenraad Vrolijk.
According to Jubilee Holding’s, its General Insurance companies represent 12.3percent of its total consolidated net assets of Sh32.3 billion as of 30 June 2020.
Jubilee Holdings Limited will however retain its ownership of its Life and Pension operations and its medical insurers business in Kenya, Uganda, and Tanzania.
At the same time, the transaction will not affect the company listing at Nairobi Securities Exchange.
Allianz is currently operating in more than 70 countries worldwide.
Globally, Allianz achieved total revenues of Sh18 trillion, and an operating profit of Sh1.5 trillion, in 2019.