Jubilee Allianz General Insurance has received a significant financial boost after shareholders approved a fresh capital injection of Ksh 2.8 billion. The move aims to restore the insurer’s capital adequacy ratio, which had previously dropped below the regulatory threshold set by the Insurance Regulatory Authority (IRA).
With this new funding, the company has achieved full compliance with the 100 percent capital adequacy requirement, placing it firmly above the mandated minimum. “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,” confirmed Sylvester Nzioka, Principal Officer of Jubilee Allianz General Insurance.
The capital injection not only stabilizes the company’s financial footing but also strengthens its long-term operational capacity. The funds are expected to support ongoing business growth, improve underwriting performance, and enhance claims settlement processes.
The shareholders’ decision comes on the back of a return to profitability for Jubilee Allianz. The insurer reported a profit of Ksh 18.7 million in 2024, a remarkable turnaround from a loss of Ksh 1.98 billion recorded in 2023. This recovery was attributed to cost containment measures, better risk assessment, and improved investment income.
Jubilee Allianz has expressed confidence that the new capital will help fortify its market position and reinforce trust among clients and stakeholders. The company also plans to leverage the strengthened financial position to innovate its product offerings and enhance customer service.
The development is a positive signal to the insurance market, indicating Jubilee Allianz’s commitment to sustainable growth and regulatory compliance. It also reflects growing shareholder confidence in the company’s future prospects, following a turbulent financial year.
As the Kenyan insurance sector continues to face pressure to meet strict capital adequacy requirements, Jubilee Allianz’s successful recapitalization could serve as a model for other insurers navigating similar financial challenges.
