Acquisition of 2 insurance firms nears

Dar es Salaam. Tanzania’s fair competition agency is now reviewing the acquisition plans for two insurance firms which are set to have new shareholders.

Sanlam Life and Jubilee Insurance were both under investigations by the Fair Competition Commission (FCC) before their shares were acquired.

A German firm Allianz Africa Holding GmbH intends to acquire business of Jubilee Insurance that is currently owned by Jubilee Holdings in which The Aga Khan Fund for Economic Development is the main shareholder.

Last year, the firm increased its profits by 98 percent.

Jubilee Insurance recorded a profit after tax worth Sh7.045 billion in 2020, up from Sh5.2 billion which was recorded in the previous year.

According to FCC statement, the acquiring firm entered into framework agreement with Jubilee Holdings Limited and Agha Khan Fund for Economic Development S.A, on September 29 last year.

Meanwhile, Tanzanian Julius Magabe intends to acquire five percent of the shareholding in the Sanlam Life Insurance in Tanzania.

Mr Magabe is currently the managing director of a company that deals in the business of life assurance.

He entered into a share purchase agreement with Sanlam Emerging Markets Proprietary Limited whereby the acquirer intends to acquire 18,847 shares, which is five percent of Sanlam Emerging Markets Proprietary Limited shares.

The notice over Mr Magabe’s intention comes after recent report showed that the company’s pre-tax profit increased by over 80 per cent due to growing life business in last year amid Covid-19 pandemic.

The company posted a profit after tax of Sh8.12 billion last year compared to Sh4.1 billion reported in the previous year.

The year 2020 was relatively good for insurance firms, with reports showing that a number of them registered a rise in profits despite the Covid-19 pandemic.

The Tanzania Insurance Regulatory Authority (Tira) has a total of 22 companies on its register that deal with general insurance business.