Jubilee Allianz General Insurance and Allianz Kenya have received a nod from Insurance Regulatory Authority(IRA) to merge their general insurance businesses. The newly formed underwriter is expected to have an annual premium of KSh 3.9 billion.
The planned merger follows a move by Global General Insurer Allianz SE to complete its buying of a significant stake in the Kenyan firm’s General Insurance, renaming it Jubilee Allianz General Insurance.
The Kenyan underwriter’s General Insurance merger with Allianz Kenya will enable the consolidated business to control an estimated 3.01% market share of Kenya’s General Insurance Industry.
Consolidation of Jubilee Allianz General Insurance and Allianz Kenya took place effective June 20th 2022, with all contracts now held by Jubilee Allianz general insurance. All previous agreements issued under Allianz remain valid under the new change,” said the firm in a statement.
Allianz’s acquisition of the Kenyan underwriter’s general insurance business was part of transactions in five markets, including Uganda, Tanzania, Mauritius and Burundi.
Jubilee Holdings to get KSh 7.75 billion after selling majority stake in general insurance business in five markets
The Kenyan underwriter will receive a total of KSh7.75 billion for the sale of majority stakes in its general insurance subsidiaries.
Allianz is also expected to invest KSh3 billion in the acquired subsidiaries.
After the deals with the Kenyan firm, Allianz announced it had signed an agreement with South African insurance firm Sanlam to form a Pan-African joint venture including Kenya.
The South African multinational has a subsidiary in the local market –Sanlam Kenya.