Jubilee Allianz General Insurance Kenya has been bolstered by a Sh2.75 billion capital injection from its major shareholders, SanlamAllianz and Jubilee Holdings, effectively resolving a two-year breach of regulatory capital requirements stemming from record losses in 2023.
Sylvester Nzioka, Principal Officer at Jubilee Allianz, confirmed in a statement on Tuesday, July 2nd, 2025, that the funds were received on June 27th. This infusion has restored the insurer’s capital adequacy ratio (CAR) to levels mandated by Kenya’s Insurance Regulatory Authority (IRA), which requires all insurers to maintain a CAR of at least 100 percent at all times.
“This move was undertaken to restore our capital adequacy ratio, which had previously fallen below the regulatory threshold,” stated Nzioka. “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.”
Mr Nzioka emphasized that this milestone underscores the company’s “unwavering commitment to financial stability and resilience,” reinforcing the security for customers and stakeholders regarding claim payments, sustainable growth, and investment in innovative solutions.
The capital inadequacy arose following a disastrous 2023 financial year. Jubilee Allianz reported a record net loss of Sh1.99 billion, primarily driven by a significant “main loss event.” This event caused insurance service expenses, including claims paid, to surge to Sh6.32 billion, severely eroding its capital base and pushing the CAR below the IRA’s 100 percent minimum.
This marks the first major capital injection since the formation of Jubilee Allianz. It followed Jubilee Holdings selling a 66 percent stake in its general insurance business to Germany’s Allianz to form Jubilee Allianz. Allianz SE and South Africa’s Sanlam Limited subsequently formed the joint venture Sanlam Allianz, which now holds the 66 percent majority stake. Jubilee Holdings retains the remaining 34 percent.
Kenyan regulations impose stricter capital requirements on general insurers like Jubilee Allianz compared to life insurers. They must maintain the higher of: a minimum statutory capital of Sh600 million, a risk-based capital level periodically determined by the IRA, or capital equivalent to 20 percent of the net earned premiums from the previous financial year.
Recent financial results indicate a significant turnaround for Jubilee Allianz. The insurer rebounded in 2024, posting a net profit of Sh18.72 million. This recovery was supported by a substantial 43.8 percent reduction in insurance service expenses, which fell to Sh3.55 billion from Sh6.32 billion in 2023.
Consequently, the insurance service result, the difference between insurance revenue and insurance service expenses, improved markedly. It stood at a negative Sh1.39 million for 2024, a vast improvement from the negative Sh1.27 billion recorded in 2023, demonstrating a return towards operational stability.
The Sh2.75 billion capital boost stabilizes Jubilee Allianz’s immediate regulatory position and aims to restore market confidence in one of Kenya’s prominent general insurers following a turbulent period.
– Nusurah Nuhu
