Jubilee Holdings Limited (JHL) reported a 1.3 percent decline in net profits to 4.18 billion shillings in the year that ended 2018 which has been described to have been exceptionally challenging for the regional insurance industry.
The group’s overall Gross Written Premiums (GWP) including Deposit Administration contributions, increased to 34.8 billion shillings from 33.8 billion shillings in 2017, whilst pre-tax profit increased 4.8 percent to KShs 5.41 billion shillings from 5.16 billion shillings recorded in 2017.
The Group’s total assets increased by 9 percent to 114 billion shillings from 105 billion shillings and total shareholders’ equity and reserves increased 11 percent from 23.6 billion shillings to 26.1 billion.
Chairman, Jubilee Holdings Mr. Nizar Juma however noted that despite 2018 having been a challenging year for the insurance industry across the region, particularly in Kenya, the persistent undisciplined mismanagement and poor insurance practices within the industry over the years have now reached a stage where the industry includes many companies that are in a state of crisis.
“I am pleased to report that Jubilee Insurance can stand up and be counted on for the strength of its balance sheet, reliability on payment of claims and a consistent and firm stand against corruption. Jubilee’s growth in Uganda and Tanzania has strengthened our market leadership and demonstrated our business resilience and agility to adapt to the market forces during tough times. Our eighty years of experience, lowest expense ratio in the industry and conservative approach to investments has allowed us to post the impressive results that we have released today,” said Mr. Nizar Juma.
Jubilee’s long term business posted a growth of 2 percent to 14 Billion shillings, which included Individual Life growth of 19 percent as the Group continues to implement the strategy to increase insurance penetration, particularly in Uganda and Tanzania where the insurance penetration is less than 1 percent of GDP and where the group’s life business grew by more than 50 percent in each country.
JHL’s maintained its regional market leadership in medical business and posted a growth of 4 percent from 9.5 billion shillings to 9.9 billion shillings, with an underwriting profit of 753 million shillings.
The general business grew by only 1 percent to 10.8 billion shillings, partly as a result of reduced regional spending on major infrastructure projects while underwriting profits grew by 14 percent to 609 million shillings from 534 million shillings with strong contributions from the Uganda, Tanzania and Burundi operations
Jubilee Holdings Board has declared a final dividend of 8.00 shillings per share for a combined interim and final dividend of 9.00 shillings per share.
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