Jubilee Holdings Limited (JHL) has entered into a set of agreements with Allianz Africa Holding GmbH (Allianz) with respect to Jubilee’s subsidiaries engaged in short term general (property and casualty) insurance activities in Kenya, Uganda, Tanzania, Burundi, and Mauritius.
Jubilee Holdings and Allianz group will become co-shareholders in JHL’s operating subsidiaries engaged in short-term general business in Kenya, Uganda, Tanzania, Burundi, and Mauritius. The transaction will involve a series of sale and purchase agreements where Allianz will acquire equity stakes ranging from 51% to 66% in Jubilee Holding subsidiaries for total consideration of KSh10.8 billion.
Jubilee Holdings will receive KSh 7.75 billion as proceeds from the transaction and will continue to hold a significant minority stake in each of these operating subsidiaries. As of June 30, 2020, the operating subsidiaries that are subject to the transaction account for 12.3 percent of Jubilee Holdings Limited consolidated net assets of KSh 32.3 billion.
The transaction will also include the transfer of the insurance business currently undertaken by Allianz’s subsidiary in Kenya, Allianz Insurance Company of Kenya limited, to Jubilee General Insurance Limited.
Allianz is a subsidiary of Allianz SE the parent company headquartered in Germany and listed on the German Stock Exchange. Allianz SE and its subsidiaries make up the Allianz group that provides a broad range of insurance services such as property, life, health, global business insurance, credit insurance and asset management services. Allianz group is present in 12 African countries and serves customers in 40 African markets.
The transaction does not include any of its Life businesses nor health insurance business in Kenya, Uganda, and Tanzania. However, the transaction is subject to obtaining approvals from Jubilee Holdings Limited shareholders, and completion of the restructuring of Jubilee subsidiaries in Uganda and Tanzania into separate general insurance entities.
Furthermore, Jubilee Holdings will have to await approval by the Capital Market Authority and Insurance Regulatory Authorities in each of the five countries and local and regional competition authorities.