Nizar Juma, the Jubilee Holdings Ltd chairman. PHOTO | COURTESY Seven years ago, we took a decision to reduce our investments in the NSE and increase them in non-quoted securities and in government securities. That has paid off, and now we are solid.
General insurance is becoming a commodity. Everybody with a briefcase is selling general insurance. It is competitive and unprofitable. Underwriters are making losses in motor insurance because there is so much fraud.
We have commitments in Kenya, Uganda, Tanzania, Mauritius and Burundi, where we operate. Outside these five countries, we are free to go where we want. We are also considering the Democratic Republic of Congo.
Nizar Juma, the Jubilee Holdings Ltd chairman, spoke with James Anyanzwa about the insurer’s regional plans and preparedness for the IFRS 17
What did you do to survive the economic challenges triggered by the Covid-19 pandemic and ensure a good return for shareholders?
We didn’t cut our employees’ salaries, we did not declare any redundancies and we did not increase the cost of our products. We also helped our customers by giving them more time if they couldn’t pay or keep their policies up.
However, we were tight on our expenses. Our expenses were the lowest in the industry. This helped us to maintain our top line. We took a hit on our bottom-line. We lost about Ksh500 million ($4.3 million) in medical claims. So our insurance result was less exciting than in 2020. But on the whole we made up for it because we did well in other investments.
People ask why we increased our investments in Bujagali, Seacom and Farmer’s Choice. These give us protection when times are not good. Look at what is happening on the Nairobi Securities Exchange. It is going down and you can’t protect yourself against that.
Seven years ago, we took a decision to reduce our investments in the NSE and increase them in non-quoted securities and in government securities. That has paid off, and now we are solid.
If you look at our record for the past 15 years, you will find that we are growing steadily. We are keeping our expenses low.
You have been reducing your investments in general insurance in the region. What informed this decision? General insurance is becoming a commodity. Everybody with a briefcase is selling general insurance. It is competitive and unprofitable. Underwriters are making losses in motor insurance […]
