This archive report was first published on 21 May 2020.
On May 21, 2020, Jubilee Holdings released its financial results for the 2019 year, showing a reduced profit of Sh4.02 billion. This is a decrease from the Sh4.13 billion profit posted in the previous year.
The company attributed the reduction to lower insurance results of Sh2.63 billion compared to Sh2.89 billion in 2018 and a lower share of profits from investments in associates.
Despite the reduced profit, the Group posted a growth of 9.9 percent on total Gross Written Premiums and deposit administration contributions, increasing to Sh38.19 billion for the year ended December 2019.
The medical business posted a growth of 8.9 percent from Sh9.94 billion to Sh10.82 billion, with an underwriting profit of Sh721 million from all countries.
However, the General business grew by 6 percent to Sh11.48 billion, but with an underwriting loss of Sh480 million.
According to Chairman Nizar Juma, the underwriting loss in General business reflects the challenges faced by insurers in the highly competitive Kenyan market.
As a result, the Group decided to transform its Kenya business by combining technology and new business processes with existing strengths, to create a business that is well prepared to compete in an increasingly digital business environment.
Chairman Juma stated, “Whilst the cost of this rebuilding process has been significant, it was clearly necessary, and the Kenya General business is now well positioned for profitable growth.”
He further noted that the non-life insurance industry in Kenya has been going through a challenging and unsustainable phase, with an underwriting loss of Sh2.97 billion in 2019, an increase of 80 percent compared to the loss reported in 2018.
The Board of Jubilee Holdings has declared a final dividend of Sh8 per share, in addition to an interim dividend of Sh1.00 per share paid in October 2019, bringing the total dividend for the year to Sh9 per share.
