Kenya: Jubilee Holdings Defies Covid to Net Sh4b Profit

Kenya: Jubilee Holdings Defies Covid to Net Sh4b Profit

Jubilee Holdings has posted 1.74 per cent growth in net profit for last year to Sh4.087 billion, bucking a trend of losses and fall in earnings witnessed in the insurance sector due to Covid-19 disruptions.

Consequently, the regional underwriter’s board has proposed a final dividend payout of Sh8 per share amounting to Sh579.78 million payable by end of July citing the strong performance.

This means Jubilee Holdings shareholders will have received a total of Sh652.26 million given that the Nairobi Securities Exchange-listed firm had paid an interim dividend of Sh72.47 million last year.

The insurer becomes the first listed underwriter to grow profits and pay a dividend in a tumultuous year that saw an increase in withdrawal of pension funds and surrender of policies.

Jubilee has attributed its stable performance to sound underwriting practices, tightening of controls over claims and expenses, and a diversified investment portfolio.

Sh78.2 million loss

"We were able to weather this storm through diversification of our product portfolio and our ability to rapidly deploy our business continuity plans to allow the majority of our staff to quickly adapt to the new working needs during the onset of the pandemic and ensuing lockdown," said Mr Nizar Juma, Jubilee Holdings chairman.

Most insurers have been hit by reduced returns from real estate and falling share values at the NSE–where they had invested billions of shillings.

Sanlam Kenya returned a Sh78.2 million loss– the second in nearly two decades as CIC broke its 13-year profit-making run with a net loss of Sh296.8 million.

Jubilee posted a 3.3 percent growth in net insurance premium revenue to Sh20.14 billion while investment income rose by 12.7 percent to Sh11.3 billion, pointing to the advantage realised from reduced exposure on NSE.

Jubilee Holdings regional chief executive Julius Kipn’getich altered the insurance business environment, ensuring the firms responds positively through strengthened agency networks and seamless customer service experience.Pandemic prevention"Our first focus was on effectively coordinating the pandemic prevention measures for both our staff and clients, a move that saw us significantly optimise our operations to achieve improved performance," said Mr Kipngetich.The underwriter’s expenses and commissions fell by 2.5 percent to Sh8.86 billion, taking pressure off the bottom-line.The group’s share of profit of associates increased by 34.5 percent to Sh1.33 billion, reflecting the impact of doubling its stake in Bujagali power project in Uganda last

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