Jubilee Insurance to merge Ugandan units in cost-cutting plan

Jubilee Insurance’s parent firm, Jubilee Holdings Limited (JHL), is planning to merge two of its three subsidiaries in Uganda in a bid to cut costs, streamline operations, and boost the firm’s competitiveness in the Kampala market.

The Nairobi-based insurer said in a public announcement Thursday that its board has approved the amalgamation of the two units that have separately been offering health and life insurance in the market.

The company said the move is to improve operational efficiency in its Uganda unit and also boost the products and services the two subsidiaries provide for Ugandan customers.

“This strategic transition is intended to strengthen operational capabilities and offer enhanced services to Jubilee’s Life and Health customers,” the company secretary Margaret Kipchumba said in a public notice.

“The amalgamation forms part of JHL’s broader strategy to optimise operations, strengthen competitiveness, and deliver enhanced long-term value to its shareholders and stakeholders.”

With the merger, JHL – the parent firm – will now have two subsidiaries in Uganda. The two will merge into Jubilee Life and Health, and the second is Jubilee Investment Company Limited which is wholly owned by JHL.

JHL has 65 percent shareholding in both two units that are set for merger.

The merger will not affect the separate Health and Life units in Kenya and Tanzania, and will also not impact existing insurance policies with the different units in Uganda.

The transaction is subject to approval by the Ugandan Insurance Regulatory Authority and other regulators in the country.

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