•Shareholders will take home a dividend record of Sh14.3 per share and a payout ratio of 24 per cent.
• In the full year to December 2022 the insurer issued a dividend payout of Sh817 million.
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Jubilee Holdings will issue a total dividend payout of Sh1.04 billion for the full year ended December 2023 despite a similar drop in profits compared to 2022.
The insurance company posted Sh4.4 billion in profits in the period from Sh5.5 billion recorded in the full year ended December 2022.
In the full year to December 2022 the insurer issued a dividend payout of Sh817 million.
Shareholders will take home a dividend record of Sh14.3 per share and a payout ratio of 24 per cent.
The total dividend per share of Sh14.3 includes an ordinary dividend of Sh12 up from Sh9 issued in 2022, and an extraordinary dividend of Sh2.3 from the remaining gain of the General Insurance’s sale to Allianz.
“The Directors recommend for approval at the Annual General Meeting, the payment of a final dividend of Sh10 per share, (subject to withholding tax where applicable). This is in addition to an Interim dividend of Sh2 per share bringing the total dividend for the year to Sh 12 per share or 240 per cent (2022:180%) based on a par value of Sh 5 per share,”
“The Board is also pleased to recommend for Shareholders’ approval, a special dividend of Sh 2.30 per share, completing the final phase of the Jubilee Allianz transaction,” the jubilee said during release of its results
Both the 2023 final dividend and special dividend will be paid on or about 25th July 2024 to members.
In the period under review, insurance revenue grew by 8 per cent to Sh22.8 billion driven by the growth in the health companies.
However, the insurer says that the rise could have been as high as 13 per cent excluding the General Insurance deconsolidation.
Jubilee Holdings chairman Nizar Juma said that insurance expenses increased due to the strategic investment in technology, people, and marketing.
Additionally, medical inflation and a highly competitive market led to a high claims experience in health companies during the year.
Net Investment Results increased by 55 per cent boosted by favourable macroeconomic factors that resulted in growth of the company’s interest incomes.
Jubilee’s strategic investments in technology, marketing and talent development was partly offset by a strong focus on cost cutting, resulting to Sh380 million in savings.
“Our strategic investment in technology is already bearing fruit. In under 20 months since its implementation, technology is undeniably a game changer for our business. We will continue to maximize on tech to ensure the delivery of maximum value to all our stakeholders,” said Chairman Nizar Juma.
The health insurance sector, spearheaded by Health Kenya, was a key driver of the revenue growth.
Total Assets grew by 14 per cent from Sh169 billion to Sh192 billion.
Other comprehensive income for the year increased to Sh3.6 billion from Sh1.5 billion in 2o22.
Total liabilities also rose to Sh137.4 million from Sh121.5 million in the year before
During the year Jubilee paid Sh3.36 million as directors’ emoluments down from the Sh3.48 million paid in 2022.
“We've boosted business efficiency with a 40 per cent increase in back-office productivity and a 36 percent rise in our Net Promoter Score,” said Group chief operations officer Juan Cazcarra.
In the year Jubilee Insurance launched a Customer Relationship Management platform to transform customer experience and marketing.
This will benefit 1.4 million clients, solidify loyalty, and enhance their position as a top ten brand in Kenya.