Jubilee Insurance cuts costs to post Sh4.09 billion profit

Jubilee Holdings Chairman Juma. [File, Standard]

Listed Insurer Jubilee Holdings has reported a 1.7 per cent rise in profit for the year ended December 2020, weathering economic shocks caused by the Covid-19 pandemic.

The firm made Sh4.087 billion after-tax during the year, up from Sh4.017 billion in 2019, attributed to strict control of claims and expenses and a diversified investment portfolio.

“The year 2020 evolved into the year of survival and cast a sharp focus on the ability of businesses to withstand the sudden and extreme changes in the business operating environment,” said Jubilee Chairman Nizar Juma following the release of the results yesterday.

“We were able to weather this storm through diversification of our product portfolio and our ability to rapidly deploy our business continuity plans to allow the majority of our staff to quickly adapt to the new working needs during the onset of the pandemic and ensuing lockdown, and in turn maintaining our industry leadership position.”

Total gross written premiums and deposit administration contributions fell to Sh37.97 billion compared to Sh38.18 billion in 2019.

Jubilee saw an increased withdrawal of pension funds and surrender of policies, which it said was mitigated through efforts to accommodate clients with greater flexibility in payment terms.

The general insurance business was the most affected by the coronavirus shocks, resulting in an 11 per cent drop in gross written premiums to Sh3.06 billion.

On the other hand, gross written premiums in the medical business grew by 10 per cent, but profits fell to Sh748 million from Sh780 million the previous year.

The Individual Life business segment reported a 16 per cent increase in gross written premiums.

Jubilee Holdings Regional Chief Executive Julius Kipng’etich said the pandemic had caused huge shifts in the insurance industry and Jubilee had moved to adopt.

“As a business, our first focus was on effectively coordinating the pandemic prevention measures for both our staff and clients, a move that saw us significantly optimise our operations to achieve improved performance,” he said.

Overall investment income for the group grew 12.7 per cent, while total comprehensive income after tax for 2020 increased by 48.7 per cent to Sh5.76 billion from Sh3.9 billion the previous year.

“A large part of this increase in other comprehensive income is attributed to net gains on the translation to Kenya shillings of the group’s regional subsidiaries and associates,” said the firm.

Total assets increased by 12.1 per cent to Sh145.86 billion from Sh130.08 billion with total shareholders’ equity and reserves rising 15.8 per cent from Sh28.25 billion to Sh32.72 billion, due to an increase in retained earnings and reserves.

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