Jubilee sets sights on DRC, Ethiopia in growth plans

Mr Nizar Juma, the Jubilee Holdings chairman. PHOTO | SALATON NJAU 

By BRIAN NGUGI

In Summary

• Jubilee Insurance is awaiting grant of a licence to operate in the Democratic Republic of Congo (DRC) before year end.
• On its Ethiopia plans, board chairman Nizar Juma said the insurer is waiting for the country to relax its laws in the sector.

Listed insurer Jubilee Holdings is eyeing Ethiopian market, board chairman Nizar Juma disclosed on Tuesday.

Mr Juma also said at the insurer’s AGM on Tuesday that Jubilee is awaiting grant of a licence to operate in the Democratic Republic of Congo (DRC) before year end.

The insurer last year struck a partnership with State-owned insurance company, the National Insurance Corporation (Sonas) to operate in the DRC.

Mr Juma, however, said the insurer is now on the verge of acquiring approvals that will allow it to operate independently and expand its operations in the country.

“We could get the licence anytime from now to operate independently before the end of the year and we plan to scale up our operations in DRC,” said Mr Juma on the sidelines of the firm’s Annual General Meeting (AGM) held in Nairobi.

Jubilee has been seeking to tap high demand for medical and life cover products in DRC since 2015.

The DRC government liberalised its market last year, putting an end to the monopoly status granted to Sonas.  But the law to open up the insurance sector in the country only came into force in March.

Sonas is owned and controlled by the government and the lack of competition by insurance firms in the country has exposed its citizens to expensive policies.

READ: Jubilee hires former AIG executive to drive expansion bid

Foreign companies are required to have a minimum capital base of $10m (about Sh1 billion) to operate in the country.

On its Ethiopia plans, Mr Juma said the insurer is waiting for the country to relax its laws in the sector.

“Ethiopia looks set to be a promising market and we are waiting for the country to open up its laws to foreign companies,” said Mr Juma.

Similar market dynamics will be at play for Jubilee, in Ethiopia where the insurance industry is relatively under-developed compared to those of other African countries.

Most insurance companies in Ethiopia have sister banks and generate business by using them as a distribution channel.

Jubilee’s full-year 2015 net profit remained nearly flat at Sh3.12 billion compared to Sh3.1 billion posted over a similar period in 2014 as its gross premiums fell during the period.