The strategic partnership between Jubilee Holdings Limited (JHL) and Allianz has emerged as the East Africa deal of the year 2020, highlighting the potential of homegrown companies to create value for their shareholders, other stakeholders and the economy by tapping inward investment into the region.
In the announcement on its website, DealMakers AFRICA noted that the Kshs. 10.8 billion (USD 100 million) transaction is the largest deal announced in East Africa in 2020.
Commenting on this achievement, JHL’s chairman Mr. Nizar Juma noted that the award is a testament to the strong capabilities in the leadership of the two entities who were able to understand the core mandate of the partnership. “Jubilee Holdings and Allianz saw an opportunity to come together to transform the short-term insurance industry in the East African market, by combining our strengths through a strategic partnership. We believe that through this, we shall be able to reshape how general insurance is conducted across the East African region.”
“We are pleased to be recognized for entering into this exciting new partnership. We look forward to bringing to the East African market international industry best practice and increasing insurance awareness and accessibility to our customers. We will bank on Allianz’s expertise in retail, digital insurance and micro-insurance, which we have already successfully deployed in several developing markets across the globe,” said Coenraad Vrolijk, regional CEO and regional executive board member of Allianz Africa.
In the proposed partnership structure, Allianz will acquire controlling stakes in the general insurance business (also known as the property and casualty insurance segment) in Kenya, Tanzania and Uganda as well as the short-term insurance segment in Burundi and Mauritius, for total consideration of Kshs. 10.8 billion (EUR 84 million, USD 100 million) while JHL will retain a significant minority stake. Stanbic Bank Kenya Limited was JHL’s financial advisor while CMS Daly Inamdar was the legal advisor. In the same vein, Allianz Africa’s legal advisors were Slaughter & May and Bowmans Kenya.
According to DealMakers, the total value of deals for 2020 halved to US$7.72 billion from $15.54 billion in 2019, while the number of transactions announced rose marginally to 489 from 464 in 2019. This is majorly attributed to the impact of the Covid-19 pandemic which continues to be a major concern for global economies.