Allianz acquires majority stake in Jubilee Insurance in Uganda
Germany insurer, Allianz which is also one of the leading insurance companies in the world has acquired 66% of Jubilee Insurance in Uganda, a subsidiary of Jubilee Holdings Limited (JHL).
In September last year, the German insurer signed an agreement with Jubilee Holdings to ensure the former acquires 66% stake in five countries in the region including Kenya, Tanzania, Uganda, Burundi and Mauritius.
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The merged entity will bear the name of Jubilee Allianz General Insurance.
On Tuesday, officials from the two companies announced that they are soon finalizing the acquisition in Uganda.
“We want to inform Ugandans that we have got approval from the Insurance Regulatory Authority to become a shareholder in Jubilee Insurance.We have set out to become Africa’s leading insurer,” said Coenraad Vrolijk, the Allianz Africa Regional Chief Executive Officer.
Vrolijk explained that before acquiring the majority stake in Jubilee Holdings, they made a survey and among the findings was the prospect of the Ugandan insurance market.
“We decided that we had to be in all markets that matter in Africa and Uganda is one of them. We are excited to have concluded the negotiations.”
According to Delphine Traoré, the Allianz Africa Regional Chief Operations Officer said despite the presence of other insurance companies in the region, they chose Jubilee as the most suitable company.
“There was no suitable partner to help us enter this market than Jubilee. The insurance sector in Uganda grew by 19% despite the Covid pandemic but also we have realized the regulators here(IRA) is professional. This gives us confidence in this economy.”
Traore explained that whereas Allianz had not entirely been wooed by the Ugandan oil and gas expected out soon, there were many other factors that moved the German insurer to come to the country.
“There is a booming agriculture sector, the oil sector and many infrastructure projects going on in Uganda whose risks need to be covered,” she noted.
According to Dr. Julius Kipng’etich, the Regional Chief Executive Officer for Jubilee Holdings Limited the new “marriage” will see better services in the insurance sector.
“We are bringing in more knowledge and practices from the global insurance market. The 130 years(for Allianz) and 85 years(for Jubilee) pooled together will make a big difference,”Kipngetich said.
The German Ambassador to Uganda Matthias Schauer hailed the acquisition that he said will further increase the influence of German companies and investments in the country.
“It is quite a remarkable milestone and one of the largest investments of a German company in Africa. The acquisition of majority shares in the five African countries means and investment of more than €100 million,” Schauer said.
“This will take a notch higher German businesses in Africa but is also a testimony of the vibrant Ugandan economy.”
Hajii Ibrahim Lubega Kaddunabbi, the Chief Executive Officer of the Insurance Regulatory Authority could not agree more.
“We are happy they are bringing here expertise but it also assures of additional capacity to retain insurance businesses in the country,” he said.
Uganda now becomes the 14th country where Allianz is operating as the German insurer has roots in North, Central, South, West and now East Africa on the African continent.
