Jubilee gets green light from CAK to acquire Allianz medical insurance unit
The competition watchdog has given the green light to Jubilee Health to unconditionally acquire the medical insurance business of Allianz Insurance Company of Kenya.
In a statement released yesterday, the Competition Authority of Kenya (CAK) approved the transaction, paving the way for the strengthening of a partnership that began in 2020.
Jubilee Health is 100% owned by Jubilee Holdings, which also controls Jubilee Life Insurance Ltd and Jubilee Financial Services Ltd.
CAK noted that the transaction is a merger rather than an acquisition because Jubilee Health will only take control of the medical insurance business.
“The post-merger shareholding will not change since the transaction involves the acquisition of the business, not the share capital,” CAK said.
The medical insurance business of Allianz Insurance Company, which is being acquired, is part of the business of Allianz Insurance Company of Kenya.
Allianz Insurance is incorporated in Kenya as a wholly owned subsidiary of Allianz Africa Holding Gmbh, itself owned by Allianz SE, an entity listed on the Frankfurt Stock Exchange in Germany.
The competition watchdog’s analysis also found little risk that the merger would result in a dominant firm that would limit competition in Kenya’s medical insurance market.
Data from the Insurance Regulatory Authority indicates that Jubilee Health and Allianz’s medical insurance business had a market share of 18.48% and 0.23% respectively as of December 2020.
Their combined market share is 18.71%.