NAIROBI, Kenya, Apr 21- Regional Insurer Jubilee Holdings (JHL) has announced a marginal rise in its net profit for the financial period ended December 2020, in the wake of COVID-19.
The firm through a statement reported that its profit after tax stood at Sh4.09 billion in 2020 compared to Sh4.02 it registered in 2019.
The regional underwriter attributed the stable performance to the confidence placed in the group by clients, continued focus on sound underwriting practices, tightening of controls over claims and expenses, and the diversified investment portfolio held by the Group.
Total Gross Written Premiums and deposit administration contributions however declined slightly to Sh37.97billion compared to Sh38.19 billion in 2019.
Total comprehensive income after tax for 2020 on the other hand increased by 48.7percent to Sh 5.76 billion from Sh3.90 billion in 2019.
“A large part of this increase in other comprehensive income is attributed to net gains on the translation to Kenya shillings of the Group’s regional subsidiaries and associates,” Jubilee writes.
The Group’s total assets increased by 12.1percent to Sh145.86 billion from Sh130.08 billion and total shareholders’ equity and reserves increased 15.8percent from Sh28.25 billion to Sh32.72 billion, due to an increase in retained earnings and reserves.
The results come in the wake of COVID-19 disruptions that affected the earnings of most insurance industries.
Jubilee Holdings Group Chairman Nizar Juma noted that the year 2020 tested the resilience of the group as well the entire insurance industry in the region.
“The year 2020 evolved into the year of survival and cast a sharp focus on the ability of businesses to withstand the sudden and extreme changes in the business operating environment,” said Juma.
Jubilee filings show that the General Business was the most impacted by the economic challenges caused by the COVID-related lockdowns across the region, resulting in an 11percent decline in Gross Written Premiums.
Its medical business however grew by 10percent and the Life Insurance business maintained volumes with Individual Life business reporting a robust growth of 16percent.
The insurance underwriting result of Sh2.57 billion for the Group showed a slight decline from Sh2.63 billion in the prior year.
Jubilee Holdings has also said that it will remain focused in enhancing its digital services to meet customer needs.
“ In 2021, JHL is accelerating its digitisation efforts to further enhance customer services and accessibility as well as continuously improving on the risk prevention and control systems as the world moves towards a post-covid era,” Jubilee added.
The board has also declared a final dividend of Sh9 per share.
