Jubilee Holdings Posts Ksh 5.08 Billion In Profits Before Tax

By Soko Directory Team / Published April 16, 2021 | 9:56 am




KEY POINTS

Total Gross Written Premiums and deposit administration contributions declined slightly to Kes. 37.97billion compared to Kes. 38.19 billion in 2019.




Jubilee Holdings Limited (JHL) demonstrated resilience by absorbing the shocks of the global COVID-19 pandemic during 2020 to earn a profit before tax of 5.08 billion shillings, an increase of 1.4 percent compared to the prior year.

During the year, the Group also paid out dividends to its shareholders, retained all of its employees across the region, and paid out the regular bonus to these employees.

Total Gross Written Premiums and deposit administration contributions declined slightly to Kes. 37.97billion compared to Kes. 38.19 billion in 2019.

Whilst the Group saw an increase in withdrawal of pension funds and surrender of policies, this was mitigated through efforts to accommodate clients with greater flexibility in payment terms.

Profit After Tax stood at 4.09 billion shillings compared to 4.02 billion shillings in the prior year, while total comprehensive income after tax for 2020 increased by 48.7 percent to 5.76 billion shillings from 3.90 billion shillings in 2019.

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.

The Group’s total assets increased by 12.1 percent to 145.86 billion shillings from 130.08 billion shillings and total shareholders’ equity and reserves increased 15.8 percent from 28.25 billion shillings to 32.72 billion shillings, due to an increase in retained earnings and reserves.

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The General business was most impacted by the economic challenges caused by the Covid related lockdowns across the region, resulting in an 11% decline in GWP.

However, the Group’s medical business grew by 10 percent and the Life Insurance business maintained volumes with Individual Life business reporting a robust growth of 16 percent.

The insurance underwriting result of Kes 2.57 billion for the Group showed a slight decline from kes 2.63 billion in the prior year.

JHL’s overall investment income grew 12.7 percent reflecting an increase in the total assets of the Group. The Group’s share of profit of associates increased 34.5 percent to 1.33 billion shillings from 0.99 billion shillings reflecting the increase in the interest held in the Bujagali power project in Uganda with the additional interest in this investment purchased in June 2020.

JHL Group Chairman Mr. Nizar Juma noted that the year 2020 tested the resilience of the group as well the entire insurance industry in the region.

“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. For Jubilee Holdings, 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,” Mr. Juma said.

Mr. Juma added that 2020 was also a momentous year for the Group as it signed the strategic partnership agreement with Allianz SE in connection with the General insurance business of Jubilee Holdings.

“The partnership was approved by the shareholders at the AGM on 15th December 2020 and the process of obtaining the necessary regulatory approvals and completion of the other conditions is progressing well”, Mr. Juma noted

Enhanced customer service delivery, as well as the safety and welfare of the Group’s staff, took center stage as the business resisted any staff layoffs or salary reductions, which many other businesses were unfortunately compelled to implement to survive the changes in the economic environment. “As a company, we managed to put in place effective measures that ensured the safety of our staff across the region. They were well facilitated to work remotely by adapting our business operations to the realities of the day. Our performance exemplifies agility and ability to adapt,” Mr. Juma added.

On his part, Jubilee Holdings Regional CEO Dr. Julius Kipng’etich noted that the outbreak of the COVID-19 pandemic posed great challenges to the carrying out of insurance in the normal way, and as a result, Jubilee put greater emphasis on providing value, strengthening its agency networks, and delivering a seamless customer service experience. “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 optimize our operations to achieve improved performance,” Dr. Kipng’etich said.

Jubilee Holdings Limited Board has declared a final dividend of kes 9/= per share.





About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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