Jubilee Holdings Limited (JHL) has finalized a number of agreements with Allianz Africa Holding GmbH (Allianz) regarding Jubilee’s subsidiaries that are involved in short term general casualty insurance and property insurance activities in Kenya, Tanzania, Uganda, Mauritius and in Burundi.
Allianz Group and Jubilee Holdings will with this new deal, become joint shareholders in all of Jubilee Holdings Limited (JHL)’s operating subsidiaries that are involved in short-term general business in the above mentioned countries.
The deal will also include a number of purchase agreements and sale agreements where Allianz will secure equity stakes in Jubilee Holdings Limited (JHL)’s subsidiaries which will range from 51 percent to 66 percent, and amount to a total of over 10 billion Kenyan Shillings.
The deal will in addition, include the transfer of Allianz’s insurance business which is currently being operated by its subsidiary in Kenya; Allianz Insurance Company of Kenya limited, to Jubilee General Insurance Limited.
Jubilee Holdings Limited (JHL) will in return receive not less than 7.75 billion Kenyan Shillings as proceeds from the deal. It will also maintain a very significant minority stake in all of the operating subsidiaries.
The operating subsidiaries of Jubilee Holdings Limited (JHL) which are included in the deal accounted for 12.3 percent of the establishment’s consolidated net assets as at the 30th of June, 2020 bringing the total to an impressive 32.3 billion Kenyan Shillings.
The deal will not affect any of Allianz’s health insurance business or life businesses in Tanzania as well as in Uganda.
The deal will be dependent on the securing of approvals from all shareholders of Jubilee Holdings Limited (JHL) as well as the completion and finalization of all restructuring moves and efforts in Jubilee Holdings Limited (JHL)’s subsidiaries present in Tanzania and Uganda as they will be broken down into individual insurance establishments.
Jubilee Holdings Limited (JHL) will need to secure approval from the Capital Market Authority as well as the Insurance Regulatory Authorities in each of the five (5) countries affected.
It will also need to secure approval from the regional and local competition authorities.
Allianz, is a subsidiary of Allianz SE; its parent company which is listed on the German Stock Exchange and also has its headquarters in Germany.
Allianz SE alongside its numerous subsidiaries, make up what is more commonly known and referred to as the Allianz Group which offers a range of insurance services that are quite broad. Services like asset management and credit insurance, global business insurance, life insurance, property insurance, and health insurance.
Allianz Group caters to customers in 40 markets in Africa and has operations in 12 countries on the African continent.
Are there any other topics, news or categories that you would like us to write on? Feel free to reach out to Mpesa Pay in the comment section.
