Jubilee gets Sh20.8 billion from Tanzania unit stake sale to Allianz

Nairobi. Jubilee Holdings has received Sh20.8 billion from the sale of a majority stake in its Tanzanian general insurance business to Allianz, marking the latest transaction completed by the two parties.

The insurance giant has taken a 51 percent stake in Jubilee General Insurance Company of Tanzania Limited, which will change its name to Jubilee Allianz General Insurance Company Limited, subject to approvals.

The multinational bought the stake from Jubilee and the Aga Khan Fund for Economic Development, SA (AKFED). Jubilee’s chairman Nizar Juma told theBusiness Daily that the Nairobi Securities Exchange-listed firm and AKFED received Sh20.8 billion and Sh11.7 billion respectively for the shares they sold to Allianz.

Jubilee will retain a 15 percent stake in the Tanzanian unit while six other minority shareholders will maintain their combined interest of 34 percent in the business.

This is the fourth acquisition to be completed as part of a 2020 agreement in which Allianz commenced the process of buying majority stakes in Jubilee’s general insurance units in five countries.

The latest deal adds to acquisitions completed earlier in Kenya, Uganda, and Burundi. The parties said they will work together to finalise the Mauritius transaction.

“The combined strengths of the two brands present us with a perfect opportunity to further grow the insurance industry in the Tanzanian market. These synergies will go a long way in placing Tanzania on a higher pedestal as far insurance penetration is concerned,” said Mr Juma.

Allianz Africa regional chief executive Delphine Traoré said the transaction is another step towards expanding the multinational’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,” she said.

Jubilee will receive a total of Sh155 billion once all the deals with Allianz are completed. It is expected that Allianz will also invest Sh60 billion in the subsidiaries.

The transactions have seen the NSE-listed insurer book substantial gains, contributing to its profit growth.

Jubilee recorded a 67 percent net profit jump to Sh176 billion in the year ended December, helped by investment income and higher net premiums.

The performance saw the company declare a special dividend of Sh100 per share or a total of Sh7.2 billion. This was in addition to its normal dividend of Sh180 per share.