Jubilee Chair Nizar Juma sheds light on partnership with Allianz

In a groundbreaking move for the African insurance industry, Kenya's Jubilee Holdings Limited has signed a landmark partnership with German conglomerate Allianz. The deal will see Allianz acquire controlling stakes of between 51% and 66% in five general insurance companies across East Africa, namely Uganda, Kenya, Tanzania, Burundi, and Mauritius. Jubilee Chairman, Nizar Juma, revealed that discussions with Allianz had been ongoing for the past four to five years and have culminated in a deal valued at 10.8 billion shillings ($100 million). The new entity resulting from this partnership will be known as Jubilee Allianz General Insurance Company and will oversee the operations of Allianz Kenya's general insurance business. According to Juma, the partnership represents a strategic move towards digitalization and positioning Jubilee as a leader in the industry. He emphasized that the funds from the deal will primarily be reinvested back into Jubilee Holdings to drive future growth and expansion. Jubilee Holdings has rejected offers from various international insurers in the past, with Juma highlighting that money was not the primary focus for the company. Instead, the goal was to find a strategic partner who could assist in advancing their digital strategy and enhancing their retail capabilities. The partnership with Allianz was deemed ideal due to the alignment of vision and goals between the two companies. The impending partnership has garnered positive reactions on the Nairobi Securities Exchange (NSE), with Jubilee's share prices experiencing a surge from 220 to 266. This increase reflects investor confidence in the strategic direction of the company and the potential for growth presented by the collaboration with Allianz. As the deal moves towards finalization in the first quarter of 2021, regulatory approvals in the respective countries where the companies operate will be crucial. Juma expressed confidence that the necessary agreements had been reached and that the approval process would progress smoothly. He reassured employees that there would be no job losses or disruptions to their roles due to the partnership. Looking ahead, the partnership is poised to revolutionize the insurance landscape in East Africa, with a focus on innovation, digital transformation, and customer-centric solutions. The strategic alliance between Jubilee Holdings and Allianz signifies a significant step towards enhancing industry standards, expanding market reach, and delivering value to shareholders and customers alike.