Restructuring: Jubilee Insurance set to retire employees
Fifty-two employees of Jubilee Insurance Company of Kenya will be retired in an ongoing restructuring process that will separate health insurer’s medical and general insurance businesses into two companies.
Group Chairman Nizir Juma said the existing company will continue to operate the individual and group life insurance, pension and annuity businesses, and will be renamed Jubilee Life Insurance.
He said the entities hived off the composite company will be called Jubilee Health Insurance Ltd and Jubilee General Insurance Ltd respectively.
All the three businesses have been licensed to operate by the Insurance Regulatory Authority,” he said in a statement announcing the new developments. “As a consequence it has been determined that 52 roles, representing 8.2 per cent of the 628 full time positions, will be redundant,” Juma added.
Those to be affected will receive a full severance financial package as required by law.
They will also be paid a salary up to the end of the month, including any outstanding earned but unutilised leave days, one month salary in lieu of notice, and severance pay of 15 days for every year of completed service.
Juma said the affected employees would also be paid one month’s salary and pro-rata severance pay for any partial year of service.
He said the existing employees and their dependents will remain entitled to their medical insurance benefits for the next three months.
They will also have access to a counseling to offer financial planning services and advice, in addition to outplacement services where required, to support them as they transition into new career paths.
The restructuring complies with local and international regulatory requirements to carry out the long-term and short-term insurance business in separate corporate entities, in order to safeguard the policyholders’ funds in the long-term business.