Jubilee H1 profit rises to Sh780m

August 3, 2011
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, NAIROBI, Kenya Aug 3 – Jubilee Holdings has reported a 35 percent rise in pre-tax profit posting Sh781 million up from Sh580 million for the first six months of 2011.

Briefing investors on Wednesday, Jubilee Group Chairman Nizar Juma attributed the performance to increased operational efficiency and maturity of its businesses across the region that saw turnover grow by 40 percent to Sh7.9 billion.

“We are pleased with our performance and will continue to invest into growing the business through the innovative expansion of our product lines, technology, human resource training and continued expansion into other markets,” Mr Juma said.

He said that during the period under review, revenue from its short-term insurance business grew 47 percent to Sh5.8 billion reflecting rigorous focus on risk management, and an innovative product development drive that saw Jubilee expand its products in agricultural insurance early this year.

The long-term business grew by 24 percent to Sh2 billion attributable to continued increase in the uptake of its products in the market.

The group’s underwriting results rose by 31 percent, with general business recording 40 percent growth in underwriting profits, and medical business 19 percent growth.

Investment income recorded a 36 percent growth to Sh984 million in the first half of 2011.

Group profit after tax attributable to shareholders grew by 31 percent from Sh522 million from Sh397million.

The company is eyeing rapid expansion of its insurance business in Africa, targeting to move into 15 new markets.

Jubilee is looking to move into the West, Central and Southern African regions within the next five years as part of a strategy to become a Pan-African insurer.

Jubilee Holdings is part of the Aga Khan Development Group, which has a 37 percent stake in it. Regionally, Jubilee Holdings is listed at the Nairobi stock exchange, and Uganda Securities Exchange.

Earnings per share rose by 19 percent to Sh9.58 cents from Sh8.02 in the previous year.

Shareholders will receive a bonus share for every 10 held following approval by the Capital Markets Authority for a bonus share issue in July.

Jubilee has also been given the green light to operate as a fund manager a move Jubilee Kenya Chief Executive Officer Patrick Tumbo expects will have a significant bearing on the company’s bottom line in the full year results.

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