Jubilee Health Tanzania is a successor business of The Jubilee Insurance Company of Tanzania Limited (“Jubilee Tanzania”), following the unbundling of the general business in 2021. Pursuant to the transaction between Jubilee Holdings Limited (“the parent” or “the group”) and Allianz, which was consummated in 2021, for the disposal of general business portfolios from the group’s stable, the erstwhile Jubilee Insurance Tanzania unbundled its general business portfolio and rebranded to the current name. The approvals for the disposal of the general business to Allianz were received in 2022. Jubilee Health Tanzania is one of the three players operating within the medical sector in Tanzania and holds good brand equity. The retention of life and medical portfolios in the aforesaid transaction underscores the importance of the insurer in the group’s overall strategy in East Africa. Post-transaction, the group is expected to hold operations in life insurance, medical insurance, investments and associates in non-financial industries as well as long term unlisted investments of strategic interest spread over Kenya, Uganda, Tanzania and Burundi. Furthermore, the group will continue to hold minority interests in former general businesses in the five markets (including Mauritius), partnering with Allianz. Jubilee Health Tanzania is expected to remain a small subsidiary in terms of gross premiums and assets, accounting for less than 6% and 2% of the respective group lines. We, therefore, assess the entity’s credit profile on a stand-alone basis, with a level of support received from the group.
Heritage Tanzania has been in existence since the liberalisation of the Tanzanian short term insurance market in 1998. The Heritage Insurance Company Kenya Limited (“Heritage Kenya”) holds a 60% stake in the business. The remainder is held by Mac Group Tanzania Limited (“Mac Group”), a local investment company with interests in various sectors of the economy. Heritage Kenya is a wholly-owned subsidiary of Liberty Kenya Holdings Limited (“LKHL”), with Standard Bank Group Limited being the ultimate holding company of the group.
Phoenix Tanzania commenced operations in 1999 and is an established underwriter of the general insurance business. The entity is part of MUA Kenya, an entity incorporated in Kenya, having a 51% stake in Phoenix Tanzania. MUA Kenya is also part of a wider group, MUA Ltd, an entity incorporated in Mauritius. Phoenix Tanzania is deemed material to MUA Kenya, having contributed above 25% of the group’s gross premiums and assets.
Sanlam Life Tanzania was established in 2005 as African Life Assurance (Tanzania) Limited and was the only Tanzanian insurer with a pure life licence. In August 2015, African Life rebranded to Sanlam Life Tanzania. Management indicated that the rebranding was aimed at increasing Sanlam’s brand visibility across African markets, while cementing its market position. The insurer is 64% owned by South African based Sanlam Limited (“Sanlam”) through Sanlam Pan Africa (formerly Sanlam Emerging Markets Limited (“SEM”)). The balance is held by Tanzanian investors. Sanlam is understood to provide technical and operational support to the insurer, whilst also fostering appropriate risk management disciplines (including the generation of monthly score cards and valuation reports). In turn, this cements the rating and underpins the insurer’s standing as the market leader in the domestic life assurance market (market share estimated at 69% in FY21 on a GWP basis). Sanlam Pan Africa is an Intermediate Non-Operating Holding Company, which is ultimately owned by South African based Sanlam Limited. Sanlam Tanzania is not a core operating entity in the group, as such the analysis a stand-alone with group support.
Tanzania is located in Eastern Africa with a population of 61.5m. The country's eastern border is the Indian Ocean with a coastline of 1,424km. Zanzibar is also part of Tanzania and consists of two main islands: Unguja and Pemba, and a number of smaller islands located 40km off the mainland coast. The country relies heavily on agriculture which accounts for more than 40% of GDP, 60% of exports (cashew nuts, sesame seeds, tobacco) and 65% of the total workforce, although gold production has increased to about 35% of exports in recent years. Apart from agriculture, tourism, mining (gold, iron and diamonds) and small-scale industries are increasingly contributing to national economic growth. According to the World Bank, following two decades of sustained growth, Tanzania reached an important milestone in July 2020, when it formally graduated from low-income country to lower-middle-income country status. Tanzania’s achievement reflects sustained macroeconomic stability that has supported growth, in addition to the country’s rich natural endowments and strategic geographic position.
EADB is a regional MDB that is mandated to strengthen socio-economic development and regional integration. It has ownership by 4 African member states and a few institutional shareholders. Headquartered in the Republic of Uganda, EADB was established in 1967 under the treaty for East African Community which was disbanded in 1977 and later revived in 1980. Following this, the Bank was re-established under its own charter, with an expanded potential membership, mandate, and operational scope. As such, EADB is accorded preferred creditor status equivalent to that of the AfDB including privileges and immunities such as diplomatic and tax-exempt status.
GCR introduces the Peer Comparatives for Tanzania Short Term Insurance. The report forms part of the Short Term Insurance Peer Comparatives series, containing key metric comparatives and summarised financial synopses of insurance entities that operate within select markets, and are publicly rated by GCR. Each report provides statistical tables and graphs reflecting collated trends and relative metrics for premium income, underwriting & net profitability, and solvency & liquidity, and provides a comparison of balance sheet and income statement data over the past five years.
This bulletin was compiled and collated in order to:
- Summarise credit views on the 20 short-term insurance companies in East Africa publicly rated by GCR.
- Indicate trends in premium income and underwriting performance across the different countries and individual insurers.
- Present solvency and liquidity levels reflected by the various insurers.
- Present a direct comparison of balance sheet and income statement data over the past five years of operation.