(from left) Jubilee Holdings Regional CEO Julius Kipng’etich, Group Chairman Nizar Juma & Group Chief Operating Officer Juan Cazcarra Regional based insurer Jubilee Holdings has more than doubled its half year earnings to Ksh.4.5 billion from a lower Ksh.1.8 billion last year.
The notable 146 per cent increase in profitability is largely attributable to gains from the sale of a majority stake in its general insurance business to Germany’s Allianz.
During the six months period, Jubilee Holdings booked a partial Ksh.2.7 billion from the sale of the 66 per cent stake of its general business having completed part of the sale represented by the Kenyan unit.
Jubilee is expected to close out the rest of the deal by the close of 2021 which will see it earn nearly Ksh.8.3 billion more, to be booked as one off gains for the Group.
“We will complete our deal with Allianz in Uganda next, then Tanzania, Burundi and Mauritius in that order. We expect to close the transaction in December this year upon the receipt of regulatory approval,” said Jubilee Holdings Chairman Nizar Juma.
At the same time, Jubilee Holdings has also seen organic growth with its gross written premium and contributions hitting Ksh.22.2 billion from 20.2 billion.
Net premiums earned in the period meanwhile rounded off to Ksh.11.2 billion from Ksh.10.1 billion.
The firm’s total operating income inclusive of the one off gains rose by 37.9 per cent to Ksh.17.9 billion from Ksh.14 billion.
The Group’s net insurance benefits and claims meanwhile swelled by 41.9 per cent to Ksh.12.2 billion from lower Ksh.8.6 billion mostly from the attrition of contracts from customers.
“Our net claims and benefits have also gone up with most of it relating to not just claims but also surrenders and complaints,” said Jubilee Holdings Regional CEO Julius Kipng’etich.
Subsequent to the improved earnings, the board of Jubilee has recommended the payment of a Ksh.1 dividend per share for a total of Ksh.72 million which will be paid out to shareholders on October 1.
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