Jubilee Insurance Steps up their Bancassurance Model

On the second day of trading this week, the equities market was characterized by varied trends as depicted by the market indicators. The NSE-20 share index retreated marginally by 0.13% to close at 3789.59 points while the NSE All Share Index (NASI) closed in the red, falling by 0.05% to close at 140.24 points. The NSE-25 Share index was the only index on a positive trend, advancing by a meagre 0.01% to close at 4058.43 points. Investors’ wealth contracted by 0.04% to close at KES 1,974.93 billion from KES 1,975.80 billion. Equity turnover reversed yesterday’s momentum, surging by 54.91% to close at KES 0.493 billion. The advance/ decline ratio held steady at 1.00x, illustrative that markets conditions were relatively stable.

In the wake of poor insurance penetration and intense price undercutting among insurance players; Jubilee Insurance (NSE: JUB) and Diamond Trust Bank (NSE: DTB) stepped up their bancassurance partnership to form a specialist referral model. This means the bank will host Jubilee Insurance staff in its branches in a bid to drive enhanced uptake of the life insurance products among the bank’s customers. Kenya will become the second country in Africa, after South Africa to adopt the specialist model of bancassurance. This move is expected to enhance their sales, thus growing their revenues. Jubilee was the second worst performer in the insurance sector, depreciating by 1.69% to close at KES 465.00.

Equity Market Highlights

Safaricom Ltd (NSE: SCOM) was the most actively traded stock today accounting for 33.93% of the total market value traded activity. KCB Group Ltd (NSE: KCB) closed in second, accounting for 31.04% of the total market turnover.

Standard Group Ltd (NSE: SGL) was the top gainer of the day on the price chart, advancing by 6.00% to KES 26.50. Sameer Africa Ltd (NSE: FIRE) posted a 4.23% rise, to close the day at KES 3.70. This was on account of speculation activities.

Atlas Development & Support Services Ltd (NSE: ADSS) capped the laggards list, plunging by 8.57% to close at KES 1.60. Liberty Kenya Holdings Ltd (NSE: CFCI) trailed behind, declining by 7.62% to close the day at KES 15.15.

Research by Genghis Research.