UNDERWRITING

Jubilee Insurance profit drops despite business growth

Jubilee Holdings says it remains financially strong

In Summary
  • The listed firm says business was impacted by the NSE 20 Share Index that dipped seven per cent within the first half of 2019
  • Regional subsidiaries continued to record impressive growth with strong contributions from Uganda, Tanzania and Burundi
Jubilee insurance centre on Mama Ngina street./FILE
Jubilee insurance centre on Mama Ngina street./FILE

Regional underwriter Jubilee Holdings has posted a slight drop in its profit for the year to June 30, even as its underwriting business remained positive.

Net profit for the period was Sh1.83 billion, a 1.6 per cent drop compared to Sh1.86 billion in a similar period last year.

This came even as Gross Written Premiums grew by 10.7 per cent to Sh20.7 billion compared to Sh18.7 billion last year.

The growth has been attributed to continued investment in efficient service delivery models as well as innovation and diversification of the group’s product portfolio.

Net insurance benefit and claims reduced to Sh9 from Sh9.8 billion in June last year.

Speaking after the release of this year’s 2019 Half Year Financial Results, Jubilee Holdings Chairman Nizar Juma noted that investment income performance was impacted by the NSE 20 Share Index that dipped seven per cent within the first half of 2019, in addition to the 24 per cent drop recorded in 2018.

However, JHL remains optimistic of its investment strategy based on a well-diversified and conservative portfolio, to continue providing sustainable investment income in the future,” the firm said yesterday.

“The Medical Business segment continues to record strong growth and profitability, whilst focused on providing value-added services to members of Jubilee’s Wellness medical schemes, which has been well received by customers,” it said.

The regional subsidiaries continue to record impressive growth with strong contributions from Uganda, Tanzania and Burundi, the Nairobi Security Exchange(NSE) listed insurer said in a statement to newsrooms.

According to Jubilee, Uganda’s Bancassurance business has recorded a 400 per cent growth in less than a year of operation in partnership with over 15 banks as it builds its presence in this growth segment.

 

This has been as a result of enhanced market awareness and customer preference for an insurance company with a strong balance sheet and a long history of delivering on promises. This model is also being replicated in Tanzania as the country sets up structures to support operations. 

Jubilee Holdings remains financially strong and remains focused on building a solid franchise of life, medical and general insurance business in all its core markets,” regional CEO Julius Kipng’etich said.

The board has declared an interim dividend of Sh1 per share.