NAIROBI, Kenya, July 1 – Jubilee Allianz General Insurance (Kenya) Limited has acquired a capital injection of Sh2.75 billion from its shareholders, enabling the insurer to fulfill the Insurance Regulatory Authority’s (IRA) capital adequacy necessities.
The contemporary capital now locations the corporate above the one hundred pc threshold for capital adequacy ratio, a key metric utilized by regulators to gauge an insurer’s skill to soak up monetary shocks and meet its obligations.
“With this capital injection, Jubilee Allianz Kenya has achieved full compliance with the 100% capital adequacy requirement and now operates above the mandated threshold,” the agency confirmed in a press release.
The transfer comes amid rising regulatory scrutiny throughout the insurance coverage sector, the place capitalisation and solvency ranges are being carefully monitored to make sure insurers stay resilient amid financial volatility and rising claims dangers.
The insurer, a three way partnership between Germany’s Allianz Group and Kenya’s Jubilee Holdings, was shaped following a transaction that noticed Allianz purchase a 66 % stake in Jubilee’s normal insurance coverage enterprise in 2023. Jubilee Holdings retained a 34 % stake within the agency.
The deal, executed by way of an settlement first signed in September 2020, was a part of a broader regional acquisition overlaying 5 nations—Kenya, Uganda, Tanzania, Burundi, and Mauritius—as Allianz sought to broaden its presence in Africa’s short-term insurance coverage market.
The capital increase is anticipated to strengthen the corporate’s capability to underwrite danger and spend money on new insurance coverage options amid rising competitors in Kenya’s normal insurance coverage sector.
