NAIROBI, Kenya, Aug 29 – Jubilee Holdings has recorded a 19 percent increase in its half-year profit to Sh1.87 billion up from Sh1.57 billion during the same period in 2016.
Total income recorded a 30 percent jump to Sh14.9 Billion driven by the rally in the Nairobi Securities Exchange that saw a 13 percent growth in the first 6 months in 2017.
The positive results were achieved against a backdrop of a volatile economic environment and an extremely competitive regional market, said Jubilee Holdings Chairman Nizar Juma.
“These impressive results were realized in an unpredictable business environment, currency volatility both in the regional and global market, as well as regulatory changes” said Mr. Juma.
He has attributed the growth to a focus on adapting to the ever changing needs of the insurance market as well as a response to the demands of the market.
Jubilee Holdings cemented its position as East Africa’s largest insurer, and in addition by assets with a 15 percent increase which now stand at Sh101.1 Billion from Sh87.6 Billion.
Underwriting results grew by 23 percent to stand at Sh1.1 billion while Gross Written Premium and Contributions grew 8 percent to Sh1.42 billion totaling to Sh18.6 billion
Earnings per share rose to Sh26 from Sh21 in the previous year, an increase of 23 percent.
“Our share price which continues to soar, even with the bear run at the Nairobi Securities Exchange demonstrates the confidence that we enjoy from our stakeholders,” added Mr. Juma.
Jubilee Holdings long term business posted a sturdy performance growing by 26 percent from Sh5.2 Billion to Sh6.6 Billion to during the first six months of 2017.
“Fraud detection continues to draw the additional focus of our management in our General Insurance business line. I am happy to report that we continue to invest in systems and mechanisms that facilitate fraud prevention, detection and effective action when it happens” said Mr. Juma
Jubilee Holdings currently operates in 5 countries and is expanding into new markets, hence the move to establish an underwriting capacity in the Democratic Republic of Congo (DRC) by partnering with Sona, a state owned insurance company to provide medical insurance products.
“A non-competitive insurance market in the DRC has exposed the citizens to expensive and overpriced policies and our decision to extend products into that market has been driven by the need to provide innovative and affordable insurance solutions,” said Mr. Juma.
Jubilee Holdings has embarked on cost reduction measures for medical insurance so as to provide affordable insurance premiums thereby increasing accessibility.
Juma says other measures include efforts to encourage the use of generic drugs which have been found to be a fraction of the cost yet just as effective as the original brand drugs.
“Technology and innovation remain a key priority for Jubilee Holdings. To this end, we have rolled out programs such as retail selling and internet selling so as to streamline our customer service experience by making it convenient for our customers to access our insurance packages and pay their premiums.”
On the regional front, the Tanzanian insurance regulator recently directed that all premiums should be paid only to the underwriter. Brokers are no longer permitted to receive premiums and will be liable to penalties should they do so. Like Kenya, all imports now have to be insured by Tanzanian insurers.