At a Glance
- Sanlam invests $21.3 million in Jubilee Allianz Kenya, restoring financial compliance.
- Regulatory approval secured for Sanlam, Jubilee Allianz Kenya merger.
- New entity poised to lead East Africa’s evolving insurance market.
SanlamAllianz, a leading Pan-African financial services entity formed through a joint venture between Allianz and Sanlam, a Johannesburg-based financial services powerhouse backed by South African billionaire Patrice Motsepe, has injected Ksh2.75 billion ($21.3 million) into Jubilee Allianz General Insurance Kenya to strengthen the insurer’s capital base and pave the way for a landmark merger that will reshape Kenya’s general insurance market.
The fresh capital injection—provided jointly by SanlamAllianz and Jubilee Holdings—comes after Jubilee Allianz recorded a record loss in 2023 that pushed its capital adequacy ratio below regulatory thresholds.
Sylvester Nzioka, principal officer at Jubilee Allianz, confirmed that the funding received on June 27, 2025, has restored the insurer’s solvency above the 100 percent regulatory benchmark set by the Insurance Regulatory Authority (IRA).
Merger signals strategic realignment in a transforming insurance sector
The capital boost coincides with regulatory approval for Sanlam General Insurance and Jubilee Allianz General Insurance to merge, creating one of Kenya’s most influential general insurers. Granted by the IRA in May 2025, the green light allows both companies to integrate operations, broaden product offerings, and expand market reach as competition intensifies across East Africa’s insurance sector.
Formed after Germany’s Allianz Group acquired a 66 percent stake in Jubilee’s general insurance business in 2023, Jubilee Allianz has been central to Allianz’s strategy to grow short-term insurance in Africa. The merger with Sanlam advances that goal while consolidating capabilities across motor, health, commercial, property, and marine insurance.
“The capital injection not only restores compliance but positions us to invest in new insurance solutions and deliver stronger value to customers,” Jubilee Allianz said in a statement. Sanlam, a subsidiary of South Africa’s Sanlam Group, contributes extensive retail insurance expertise, while Jubilee Allianz brings deep experience in risk management and customer engagement.
East Africa footprint expands under Motsepe’s backing
Sanlam, Africa’s largest non-banking financial services group, has accelerated its pan-African strategy under Motsepe’s backing and is leveraging mergers to build scale and digital capabilities across key markets. In Kenya, insurance penetration remains below 3 percent—far behind South Africa’s mature market—but rising digital adoption and regulatory reforms are expected to spur growth.
The merger follows Jubilee Holdings’ earlier restructuring, including the sale of its life business to Allianz SE, and forms part of a wider regional acquisition covering Kenya, Uganda, Tanzania, Burundi, and Mauritius. The combined entity plans to roll out a unified brand in 2026, reflecting the sector’s shift toward customer-led, digitally enabled insurance.
As Kenya’s insurers race to modernize amid economic volatility and growing claims risks, Sanlam and Jubilee Holdings are positioning their new venture as a market leader poised to unlock fresh growth opportunities across East Africa.
