Jubilee Allianz General Insurance Kenya has received a Sh2.75 billion capital boost from its top owners SanlamAllianz and Jubilee Holdings, lifting it from a two-year regulatory capital breach triggered by a record loss in 2023.
Sylvester Nzioka, principal officer at Jubilee Allianz said on Tuesday that the capital injection came in on June 27,2025 and has now restored the insurer’s capital adequacy ratio within the levels required by the Insurance Regulatory Authority (IRA). The law requires insurers to maintain a capital adequacy ratio of at least 100 percent at all times.
“This [capital injection] move was undertaken to restore our capital adequacy ratio, which had previously fallen below the regulatory threshold. With this capital injection, Jubilee Allianz Kenya has achieved full compliance with the 100 percent capital adequacy requirement and now operates above the mandated threshold,” said Mr Nzioka in an emailed statement.
“This milestone underscores our unwavering commitment to financial stability and resilience. It reinforces the security and confidence our customers and stakeholders can place in our ability to meet claims obligations, support sustainable growth, and invest in innovative solutions that address emerging risks,” he added.
This marks the first major capital injection in Jubilee Allianz since Jubilee Holdings sold 66 percent of its stake in the general insurance company to Germany’s Allianz SE to form Jubilee Allianz. Jubilee Holdings retained a 34 percent stake.
Allianz SE and South Africa’s Sanlam Limited then formed a joint venture called SanlamAllianz which is now the majority shareholder of Jubilee Allianz with a 66 percent stake while Jubilee Holdings maintains the 34 percent stake.
Jubilee Allianz’s capital adequacy ratio—a measure of the insurer’s ability to settle claims from policyholders—had dipped to negative 193 percent in the financial year ended December 2024 from negative 112 percent in the prior year. This breached the minimum of 100 percent required by the IRA.
The Insurance Act mandates the IRA to determine capital levels required by insurers by taking into consideration the capital for insurance risk, market risk, credit risk, and operational risks. Further, general insurers are supposed to maintain minimum capital at a higher of Sh600 million, risk-based capital determined by the IRA from time to time or 20 percent of the net earned premiums of the preceding financial year.
Jubilee Allianz’s breach in capital adequacy ratio was triggered by a record net loss of Sh1.99 billion in 2023 when a main loss event saw its insurance service expenses including claims paid out hit Sh6.32 billion.
The insurer has since recovered to post Sh18.72 million net profit in 2024, according to the latest financial results which showed insurance service expenses drop by 43.8 percent to Sh3.55 billion.
During the review period, Jubilee Allianz’s insurance service result—the difference between insurance revenue and insurance service expenses—improved to negative Sh139.8 million in 2024 compared with negative Sh1.27 billion in the prior year.
Net investment income improved to Sh319.14 million from the prior year’s loss of Sh1.33 billion. Another item that contributed to a return to profit was a drop in other operating expenses from Sh1.01 billion to Sh131.99 million.
Jubilee Allianz and Sanlam General Insurance Kenya are in the final stages of merging their operations in Kenya as part of the strategic alliance between their parent companies.
The merger will see Sanlam General, which is part of Sanlam Kenya Plc, transfer part of its assets and liabilities to Jubilee Allianz General Insurance.
The looming deal aligns with the broader SanlamAllianz joint venture through which Sanlam Limited and Allianz SE—which own significant stakes in Sanlam Kenya and Jubilee Allianz, respectively—intend to create a pan-African financial services group with a presence in 27 African countries.
Allianz SE and Sanlam Limited in 2023 said their joint venture, called Sanlam Allianz, will have a combined group equity value of approximately R35 billion (Sh254.2 billion), giving customers a broader offering of insurance products tailored to their needs.
