The company currently has insurance and investment subsidiaries in Kenya, Uganda, Tanzania, Burundi and Mauritius, with the firm ranked the largest insurer in the majority of these markets.
Jubilee collected Sh5.5 billion in total gross premiums in the first quarter, cementing its position as Kenya’s largest insurance firm according to statistics from the Insurance Regulatory Authority (IRA).
The Business Daily spoke with Nizar Juma, the chairman of Jubilee Holdings, on the company’s growth plans and emerging issues in the local insurance market.
Could you share with us Jubilee’s growth plans?
We are looking for acquisitions locally and in the regional market. We are looking for companies that have a DNA like that of Jubilee. We are fastidious in terms of ethics in business, including tax compliance.
There are some negotiations currently ongoing with target companies and we will announce the details later when everything is finalised. There are instances where we will go greenfield, but acquisitions remain our preferred expansion mode.
Which specific markets are you looking at?
We are not limited; we want to grow both in our current operations and new markets as well. Our ambition is to be the most important financial services group on the continent.
West Africa offers good opportunities for us and we will likely use the greenfield option there. We are already doing some business in these countries through the Aga Khan Development Network.
We had plans to also start operations in South Sudan but we have shelved it due to the situation there. We remain focused on expansion and we recently brought in a CEO for the Jubilee Group whose main role is to spearhead the company’s growth strategy.
In markets where Jubilee has existing operations, are the acquisitions aimed at entering insurance segments where the company does not yet have a presence?
We are major players in all insurance classes and lead in the major ones like medical insurance. Our goal is to grow market share. In searching for acquisitions, we are not precluding companies that underwrite business similar to that of Jubilee.
How will Jubilee fund the acquisitions and new startups?
Mainly through undistributed profits (retained earnings). Our shareholders are also ready to provide more money should we come across a large acquisition that we cannot fully fund from our internally generated cash. We have never asked shareholders to put in new money since 1985 but it’s an option that we have.
Source The Business Daily
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