Jubilee in record Sh1b dividend payout after posting 16pc profit

Jubilee Holdings Limited Regional CEO Julius Kipngetich, JHL Group Chairman Mr. Nizar Juma and JHL Group Chief Operating Officer Mr. Juan Cazcarra during the release of the insurer’s 2021 Half Year Financial Results. [File, Standard]

Jubilee Holdings Ltd (JHL) has raised dividend payment for the year ended December 31, by nearly a fifth.

The firm, in a performance statement, said it will pay shareholders a record Sh1.036 billion, or Sh14.3 per share, compared with Sh869.6 million, or Sh12 per unit, it paid a year ago.

This represents a 19.08 per cent jump in the payout. This comprises Sh870 million ordinary dividend and Sh166 million in special or extraordinary payout.

The special dividend arises from the large gains the insurer has booked from the sale of a majority stake in its general insurance unit to Allianz SE.

The dividend will be paid to shareholders on or about July 25 for those who will be on its register a month earlier on June 25.

Insurance revenue grew by eight per cent - excluding the general insurance deconsolidation to Sh22.8 billion, driven by the growth in the health companies.

Revenue growth

The health insurance sector, spearheaded by Health Kenya, was a key driver of the revenue growth with the segment’s focus on innovation and customer-centric solutions resonating well with the market.

Jubilee Holdings Ltd’s net profit for the year, however, fell 19.84 per cent to Sh4.42 billion from Sh5.52 billion it reported the year before.

JHL Group Chief Executive Dr Julius Kipng’etich said excluding the transactions with Allianz, its profit after tax reached Sh5.1 billion, a growth of 16 per cent over Sh4.4 billion in the prior year.

“As proud citizens of East Africa, our heritage fuels our unwavering commitment to advancing societal good across the region. We are dedicated to deploying our resources to uplift the communities we serve; address pressing needs and foster sustainable development for a brighter future,” said Dr Kipng’etich.

Insurance expenses, however, increased due to the strategic investment in technology, people, and marketing.

He said medical inflation and a 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.

JHL’s strategic investments in technology, marketing and talent development were partly offset by a strong focus on cost-cutting, resulting in 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 maximise on technology to ensure the delivery of maximum value to all our stakeholders,” said JHL Chairman Nizar Juma.

The firm said its premiums increased eight per cent to Sh22.78 billion compared with Sh21.09 billion previously.

Jubilee started the process of selling majority stakes in its general insurance businesses in Kenya, Tanzania, Uganda, Mauritius and Burundi in 2020.

“The group’s financial statements are prepared in accordance with IFRS Accounting Standards and the Companies Act, 2015,” the firm’s independent auditors wrote in the financial statement.

“In our opinion, the accompanying summary financial statements are consistent, in all material respects, with the audited financial statements in accordance with IFRS Accounting Standards and the Companies Act, 2015.”

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