Jubilee Holdings Chairman Nizar Juma (centre) with Patrick Tumbo (Jubilee Kenya CEO) and John Metcalf, a director
The performance, which saw underwriting profit jump 13.4 percent to Sh540 million was delivered despite a substantial drop in the equity market last year.
“We are extremely pleased with our continued strong performance in 2011. This has proved the validity of our policy to diversify our investments into non-traditional areas.” Jubilee Holdings Chairman Nizar Juma said.
The insurer crossed the Sh15 billion gross premium level with an impressive 39 percent increase over 2010.
At Group level, life insurance business recorded a 35 percent growth, and short term business increased by 43 percent, which incorporates a 49 percent growth in the general insurance business of Jubilee Kenya.
Its medical business recorded a 49 percent growth with Jubilee Tanzania growing by an exceptional 341 percent growth over 2010.
The chairman said during the year, they reinforced their market leadership in Kenya, Uganda and in Tanzania.
“We consider it very important that our core insurance business contributes effectively to our group results and to enhance this, Jubilee is making significant investments in new operating systems and customer service capabilities,” he said.
“We are also pleased with a strong increase in our medical underwriting profits, a result of improved case management and claims service efficiency,” he added.
The Directors have recommended a total dividend of 110 percent which equates to Sh5.50 per share.
To commemorate its 75th anniversary in August 2012, Jubilee also declared a bonus share issue in the ratio of 1:10 for the third consecutive year.
Its long term business grew by an overall 30 percent in 2011, with Life insurance recording a growth of 35 percent, due to increasing success of its customer focused education and asset building products, as well as introduction of a product targeted for the youth, particularly university students.
The group’s assets base also grew from Sh31.7 billion in 2010 to Sh39 billion in 2011.
In 2010 Jubilee took advantage of the strong economic growth in the East African region, and initiated a phased regional expansion campaign. It launched subsidiaries in Burundi and Mauritius in 2010, and will be entering into new markets each year from now.
By the year 2014, Jubilee expects to be in 12 markets in Africa.
The regional expansion program is complimented by the strengthening of the branch network within existing markets. In 2011, 12 agency offices were opened in major townships in Kenya, and the same continues in all the countries.
“The product development drive in short term and long term business continues with further strengthening of crop and livestock insurance, SME targeted products; political violence, terrorism and sabotage covers; retail medical products tailored for young families and retirement and education-based life insurance policies. Jubilee also plans to diversify channels of distribution, including strengthening its bancassurance platform,” Juma emphasised.
