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Kenya

Jubilee declares 24 pc increase in profits

NAIROBI, Jun 14 – Jubilee Holdings has declared pretax profit of Sh1.16 billion for the year ended December 31, 2009.

Jubilee is the largest composite insurer in East Africa with a client base of over 250,000 clients.

Speaking at the company\’s 72nd Annual General Meeting on Monday Chairman Nizar Juma said: "We are pleased with our consistently improved performance across the region which has enabled us strengthen our national and regional leadership. We have improved our market share in all our regional markets in spite of the fragile global economy that is yet to fully recover from the acute financial crisis of early 2009. We are naturally delighted that we have crossed the Sh1.1 billion mark in our group profits and have recorded an underwriting profit of Sh359 million.”

Impressive growth was recorded in all lines of business with the gross written premium increasing by 21 percent to over Sh9.1 billion. Jubilee Kenya recorded an outstanding 26 percent growth in general business, a 24 percent in life business and consolidated its market leadership with an increase of 11 percent.

Consequently, the company directors have recommended a total dividend of 90 percent on the issued share capital, which equates to Sh4.50 per share ratio. The company has also declared a bonus share issue in the ration of 1:10. Jubilee Insurance last issued a share bonus in 2006.

Jubilee’s enhanced focus on their core business has paid off leading to a record breaking 36 percent increase in underwriting profits which shot up to Sh359 million from Sh265 million in 2008.

Mr Juma said: “Jubilee continues to be the number one insurer of choice in Kenya, Uganda and overall in East Africa. We are especially delighted with our performance in Tanzania where we saw our market share increase by 16 percent.”

The Group\’s impressive end of year results translate into a 28 percent increase in the profit attributable to shareholders, with the earnings per share increasing to Sh18.33 from Sh14.14.

Jubilee Insurance is also now the largest capitalised insurance company in Kenya with a paid up capital of Sh700 million. The company is embarking upon an aggressive product development initiative that has seen six new market driven products launched in the East Africa market region. These include: education and asset- based life insurance policies, a retail medical product tailored for young families and a unique cover for political violence, terrorism and sabotage across the East Africa region.

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Jubilee Tanzania grew by 21 percent to consolidate its position in the market, with a significant growth in medical business in line with the Group\’s expansion drive of its medical franchise across the region.

Similarly, Jubilee Uganda strengthened its leadership position by 39 percent, besides diversifying its business portfolio to include life and medical insurance and experienced a five-fold increase in these new lines of business.

”It is our declared policy to build our technical platform to support an active strategy of further regional expansion this year. The Group will continue to strengthen its position as the leading multi-line insurance brand in Eastern Africa. This demonstrates the success of our initiatives to continue driving growth in the life insurance sector, expand the successful medical franchise across the region and continue focus on risk management and underwriting profitably," Mr Juma said.
 

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