Jubilee Insurance in Uganda, a subsidiary of Jubilee Holdings Limited, has been acquired by Allianz, a German insurer and one of the world’s biggest insurance companies (JHL).
In September of last year, the German insurer agreed to buy a 66 percent share in five countries in the area, including Kenya, Tanzania, Uganda, Burundi, and Mauritius, from Jubilee Holdings.
Jubilee Allianz General Insurance will be the name of the merging company.
Officials from the two corporations stated on Tuesday that the acquisition in Uganda will be completed soon.
“We are pleased to inform Ugandans that the Insurance Regulatory Authority has approved our application to become a shareholder in Jubilee Insurance.
Allianz Africa Regional Chief Executive Officer Coenraad Vrolijk stated, “We have set out to become Africa’s leading insurer.”
Vrolijk indicated that they conducted a survey before acquiring the majority position in Jubilee Holdings, and one of the findings was the potential of the Ugandan insurance industry.
“We made the decision that we needed to be in all of Africa’s important markets, and Uganda is one of them. We are overjoyed that the negotiations have come to a close.”
Despite the availability of other insurance companies in the region, Allianz Africa Regional Chief Operations Officer Delphine Traoré said they chose Jubilee as the most suited company.
“We couldn’t have found a better partner to assist us break into this industry than Jubilee. Despite the Covid pandemic, Uganda’s insurance business increased by 19 percent, and we’ve learned that the regulators here (IRA) are professional. This gives us hope for the economy.”
While Allianz was not totally enticed by the Ugandan oil and gas projected to be released soon, Traore stated that there were a number of other variables that prompted the German insurer to visit the nation.
“In Uganda, the agriculture sector is flourishing, the oil sector is booming, and there are a lot of infrastructural projects going on that need to be covered,” she said.
The new “marriage,” according to Dr. Julius Kipng’etich, Regional Chief Executive Officer of Jubilee Holdings Limited, will result in better insurance services.
“We’re bringing in more global insurance business knowledge and practices. The combined 130 years (for Allianz) and 85 years (for Jubilee) will make a significant difference,” Kipngetich remarked.
The acquisition, according to German Ambassador to Uganda Matthias Schauer, will strengthen the impact of German enterprises and investments in the nation.
“It is a significant milestone and one of the most significant investments made by a German corporation in Africa. The purchase of majority stakes in five African countries entails a €100 million investment, according to Schauer.
“This will raise the bar for German enterprises in Africa, but it is also a testament to Uganda’s thriving economy.”
The Insurance Regulatory Authority’s Chief Executive Officer, Hajii Ibrahim Lubega Kaddunabbi, couldn’t agree more.
“We are pleased that they are bringing experience to the country, but it also ensures more capacity to keep insurance companies in the country,” he said.
As the German insurance has roots in North, Central, South, West, and now East Africa on the African continent, Uganda becomes the 14th country where Allianz operates.