NAIROBI, Kenya, Aug 30- Regional insurer, Jubilee Holdings Limited Sunday announced a profit of Sh4.5 billion in its half-year net earnings compared to Sh1.8 billion posted in a similar period last year.
The group through a statement said that the improvement in the performance was greatly influenced by gains from the sale of a majority stake in its former subsidiary, Jubilee General Insurance Limited to Germany’s Allianz on May 4th, 2021.
Jubilee Holdings gained Sh2.074 billion, from the sale of 66percent of its Insurance business to the multinational Allianz group.
“Whilst Jubilee Insurance registered an initial gain of Sh2.073 billion from the sale of 66percent of its Kenyan General Insurance business to the Allianz Group: this transaction is currently undergoing regulatory approvals in the Group’s other markets with Uganda poised to complete next and the remaining markets by the end of 2021,” the group said in a statement.
Meanwhile, total Gross Written Premiums and Deposit Administration contributions grew by 10percent to Sh22.2 billion compared to Sh20.2 billion in 2020
The growth was attributed to 20percent and a 36percent increase in the Medical business and Annualized Premium Equivalent sales respectively.
“Results were driven by robust operating performance across all business segments with a 17 percent increase in insurance results from Sh1.4 billion in 2020 to Sh1.6 billion in 2021, coupled with a 141percent increase in investment income,” the firm’s statement read in part.
Between 30 June 2020 and 30 June 2021, the Group’s total assets increased by 8percent to Sh151.72 billion while total shareholders’ equity and reserves increased 24percent from Sh29.71 2020 billion.
Jubilee Holdings Limited Group Chairman Nizar Juma noted that the significant growth achieved during the period strengthens its position as a regional market leader.
He said the firm is positioned to execute its strategic focus on the Life and Medical business segments, whilst cooperating with Allianz, the new strategic partner to create additional value in the General insurance segment.
“Our outstanding financial results in the first half of the year are evidence of the tremendous progress we are making in executing on our growth strategy. We continue to place emphasis on exceptional investment returns, expense discipline, and topline growth to provide value to both our shareholders and customers,” said Juma.
The group’s regional Chief Executive Officer Julius Kipngetich added that the firm expects a gradual return to a more normal economic pattern following the rollout of COVID-19 vaccination programs across the country.
“We have also accelerated our digital innovation journey and the quality of our distribution network within key customer touchpoints. We will continue to forge ahead with an even stronger focus on product differentiation. We are well ahead of our plans in developing the capability to become a fully digital company to be able to offer all our customers a seamless end-to-end online product experience,” said Kipngetich.
Jubilee Holdings Board has declared an interim dividend of Sh1/= per share which will be payable on or about 11th October 2021.
