Jubilee starts operations in DRC, targets Ethiopia as profits grow 7.5 per cent

NAIROBI, KENYA: Jubilee Insurance has started its operations in the Democratic Republic of Congo (DRC) as it races to grow its footprint in the region.

Jubilee Holdings Limited (JHL), which has operations in Tanzania, Uganda, Rwanda, Burundi and Mauritius said its half-year net profits grew by 7.5 per cent to Sh1.5billion.

Its Gross Written Premium grew by 6.8 per cent to Sh17.1 billion.

The firm said in a statement on Tuesday that it had recorded increased growth in investments by 30 per cent, life business by 27.8 per cent, General business by 8 per cent and Medical segment by 6.1 per cent.

The asset base as at the end of June stood at Sh87.6 billion, the highest in the insurance sector and a 6.3 per cent growth compared to the end of 2015.

The company has also recorded a growth in shareholder equity to Sh21.2 billion.

In a statement, Jubilee Holdings Chairman Nizar Juma said its payment of claims grew by 17.6 per cent to Sh7 billion.

"The ability of an insurance company to pay claims fast, irrespective of the amount is what makes an Insurance firm reliable. We are always happy to be at the forefront in settling customers' claims, giving them the peace of mind," Juma said.

The firm is counting on its launch of the specialist (or referral) model in Bancassurance, through partnerships with several other banks, to boost the life insurance business segment.

Jubilee Holdings is also looking at regional expansion to other markets and has already started operations in the Democratic Republic of Congo (DRC) with its medical scheme and is looking into expanding into Ethiopia subject to regulatory approvals.

Jubilee Insurance targets to cover 5.5 million customers over the next five years and is also on track on its investment diversification plans.

"We are investing an additional Sh5.5 billion in Uganda's 250-megawatt Bujagali hydro-electric power project which is an additional 8.8 per cent in the equity of the project. We have a joint 30-year concession deal to operate the plant that provides 40 per cent of Uganda's power," Juma said.

JHL also has major investments in SEACOM, the first Fibre Optic submarine cable system covering over 15,000kms from South Africa to France.

"Projects like Bujagali and SEACOM provides us with guaranteed income in USD terms which gives Jubilee Insurance the future stability it has planned for," he added.

Over the past five years, JHL had a planned policy to diversify its portfolio out of equity holdings into the bond market.

This is currently paying off in the wake of the collapsing equity market.

Jubilee Holdings is also looking at retaining its regional market leadership by evolving its business model to focus on its key growth segments.

This will be done through developing products for the expanding low and middle income group that will see Jubilee Holdings grow the retail business including medical, motor and micro finance institutions.

Insurance fraud still remains of concern to industry players and Jubilee Holdings is tightening its reins by improving the quality of people and companies that it insures through its new systems.

"With fraud being a big headache for industry players, Jubilee Holdings has now adopted strict vetting mechanisms for anyone who wants to take up an insurance policy. It is our hope that the courts will enforce stiffer penalties on those charged with Insurance fraud, as the current fines aren't punitive enough," Mr Juma said.