Jubilee Holdings Chairman Nizar Juma. FILE PHOTO | NMG Jubilee Holdings #ticker:JUB shareholders are set for a Sh579.78 million final dividend payout after the insurer defied a trend of losses and fall in earnings to grow its full year net profits.
The Nairobi Securities Exchange-listed firm yesterday announced a 1.74 per cent growth in net profit for last year to Sh4.087 billion despite the Covid-19 disruptions that slowed businesses.
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, bringing total payout for the year to Sh652.26 million.
The insurer, which had paid a Sh72.47 million interim dividend last year, becomes the first listed underwriter to grow profits and pay a dividend.
Jubilee has attributed its stable performance on sound underwriting practices, tightening of controls over claims and expenses, and a diversified investment portfolio.
“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 lock-down,” said 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.
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 per cent to Sh11.3 billion, pointing to the advantage realised from reduced exposure on NSE.
Jubilee Holdings regional CEO Julius Kipng’etich altered the insurance business environment, making the firm to respond through strengthened agency networks and seamless customer service experience.
“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 Dr Kipng’etich.