Allianz has finished acquiring its majority stake in Jubilee General Insurance Company of Tanzania.
A joint statement from the insurer, along with Jubilee General Insurance, said that the former had acquired a 51% stake, following the signing of an agreement in September 2020.
Under the deal, Allianz was to become the majority stakeholder in Jubilee’s general insurance businesses in five East African countries. This marks the fourth transaction to be completed after Kenya, Uganda, and Burundi. The last will be Mauritius, subject to regulatory approvals.
Jubilee General Insurance Company of Tanzania Limited will change its name in due course to Jubilee Allianz General Insurance Company Limited, subject to approvals.
Delphine Traoré, regional CEO of Allianz Africa, said: “This is another step towards expanding Allianz’s footprint in Africa. We are really proud of the progress and we are looking forward to working together with Jubilee to offer premium service delivery in the insurance space of East Africa.”
This is the fourth acquisition to be completed as part of an agreement announced on September 29, 2020, wherein Allianz agreed to acquire the majority shareholding in the short-term general (property and casualty) insurance business operations in five countries in Africa, namely Kenya, Uganda, Tanzania, Burundi and Mauritius. The first acquisition, in Kenya, was completed on May 4, 2021, while Uganda and Burundi were completed in October 2021 and March 2022 respectively. The closing of the transaction in Mauritius will follow shortly, subject to regulatory approvals.
It was around the time that the deal was signed in September 2020 that the two firms announced that they were entering into a strategic partnership.
The aim of that was to cover the property and casualty insurance segment in Kenya, Tanzania, and Uganda as well as the short-term insurance segment in Burundi and Mauritius. Jubilee would retain ownership of its life and pensions operations and its medical insurance business in Kenya, Uganda, and Tanzania.
In the proposed partnership structure, Allianz will acquire controlling stakes in each of these businesses for total consideration of KES 10.8bn (USD $100m) whilst Jubilee will retain a significant minority stake.