Jubilee Insurance Records 7.5 Percent Profits

Jubilee Insurance Holdings announced their HY16 results recording a 7.5 percent growth in Profit after Tax (PAT) to 1.58 billion shillings with an EPS of  21.2 shillings (+4.95 percent). Gross earned premiums on the other hand increased 12.65 percent to 13.62 billion shillings while net earned premiums also grew 12.60 percent to 8.36 billion shillings.

Operating profit improved by 11.3 percent to 1.37 billion shillings as a result of a 33.8 percent and 30.2 percent increase in commission earned and investment income (respectively). Going forward, Jubilee Insurance is keen on implementing a strategy to diversify its income stream and investment assets.

Under this strategy, Jubilee is seeking to reduce its exposure from the equity market by increasing investments in government securities and undertaking infrastructure projects such as Tsavo power and Bujagali energy projects, and SEACOM in the ICT space. The directors recommend an interim dividend of KES 1.00 with the books closure slated on 16th September 2016.

On the Stock Market, varied drifts were evident on the benchmark indices following the closure of the day’s trading activities. The NSE All Share Index registered a 0.35 percent slump to close at 134.47 points while the NSE 20 Share Index was on the green, advancing by 0.01 percent to clinch at 3179.23 points.

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The NSE 25 Share index also remained on the losing front, edging down by 0.28 percent to 3509.43 points. Market capitalization equally contracted by 0.34% to close at KES 1,936.52Bn whilst the equity turnover gained 12.04 percent to close at 1.997 billion shillings buoyed by the heavy trading activities on the banking stocks.

Market breadth, an unbiased measure of the market performance, indicated that the market conditions had slightly declined; with the A/D ratio closing at 0.79x from 1.67x.

Banks have bounced back after the signing of the interest rates and the commercial ones are now dominating the top gainers category.