Nairobi, August 31st, 2016: East Africa’s number one insurer Jubilee Holdings Limited (JHL) has today announced its half year to 30th June 2016 performance figures, which saw the regional insurance Group’s profit before tax grow by 10.2% to Ksh 1.972billion over last year. This positive results saw the Gross Written Premium (GWP) grow by 6.8% to Ksh 17.184 Billion. Jubilee Holdings recorded increased growth in investments by 30%, Life business by 27.8%, General business by 8% and Medical segment by 6.1%. The asset base as at 30th of June was Ksh87.6 billion, the highest in the insurance sector that is a 6.3% growth compared to the end of 2015. The company has also recorded a growth in shareholder equity to Ksh21.2 billion. Jubilee Holdings has maintained its number 1 position in Medical business, short term business, pension segments and remained the overall number 1 insurer in Kenya, Uganda, Tanzania and East Africa.
In a statement, Jubilee Holdings Chairman Mr. Nizar Juma said that Jubilee Holdings has produced strong results, continuing on a definite path of profitable growth.
“Jubilee Holdings payment of claims grew by 17.6% to Ksh7 billion. The ability of an insurance company to pay claims fast, irrespective of the amount is what makes an Insurance firm reliable. We are always happy to be at the forefront in settling customers’ claims, giving them the peace of mind. This is amply demonstrated by Jubilee Insurance winning the major loss award at the Think Business Insurance Awards amongst 12 significant awards that Jubilee won this year.” Juma said.
He also added that Jubilee Holdings was well capitalized and has achieved and surpassed the minimum new risk based capital required for both life and general business.
In its full year 2015 results, the insurer announced a 25.3 per cent growth in its pre-tax profits to Ksh3.95 billion. Gross revenue increased by 37 per cent to Ksh24.8 billion.
Going into the second half of the year, management is confident about revenue growth underpinned by amongst others, Jubilee Holdings launch of the specialist (or referral) model in Bancassurance, through partnerships with several other banks, which is expected to boost the life insurance business segment.
Jubilee Holdings is also looking at regional expansion to other markets and has already started operations in the Democratic Republic of Congo (DRC) with its medical scheme and is looking into expanding into Ethiopia subject to regulatory approvals.
Jubilee Insurance targets to cover 5.5 million customers over the next five years and is also on track on its investment diversification plans.
“We are investing an additional Ksh5.5 billion in Uganda’s 250-megawatt Bujagali hydro-electric power project which is an additional 8.8% in the equity of the project. We have a joint 30-year concession deal to operate the plant that provides 40% of Uganda’s power”, Said Mr. Juma.
JHL also has major investments in SEACOM, the first Fibre Optic submarine cable system covering over 15,000kms from South Africa to France. “Projects like Bujagali and SEACOM provides us with guaranteed income in USD terms which gives Jubilee Insurance the future stability it has planned for,” He added.
Over the past five years, JHL had a planned policy to diversify its portfolio out of equity holdings into the bond market. This is currently paying off in the wake of the collapsing equity market.
Jubilee Holdings is also looking at retaining its regional market leadership by evolving its business model to focus on its key growth segments. This will be done through developing products for the expanding low and middle income group that will see Jubilee Holdings grow the retail business including medical, motor and micro finance institutions.
“Jubilee has developed digital channels that will see the insurer invest in technology and expertise to be regional market leader in technological channels of the future,” Jubilee Holdings Group Chief Executive Officer Dietmar Raich said.
This year, Jubilee Holdings introduced the Performance Excellence module (JPEX), which is a Process Optimization and Quality Management System that is adapted to Financial Services Industry.
“We are in the process of adopting and integrating a financial system that will ensure that we get into Seamless, End to End, Process Flows where we will be able to capture accounting as it happens and Manage by ‘Exception’ Dashboards. This system will enable us have Secure, Continuous Integration with Partner Systems and also have online real time transactions to ensure that our financial system is flawless to depict our status as market leader,” Mr. Raich said.
The region’s top insurer is growing the life business by building a distribution and human resources capacity, which will drive growth particularly in Uganda and Tanzania and hopes to achieve this by enhancing its communication and marketing strategy in these markets for a broader market share.
“Jubilee Insurance pioneered its marketing and communication strategy a decade ago and other insurance companies have since followed this trend. Our motive was to grow insurance penetration in the Kenya, and buoyed by its success, we are on track to implement user insurance education in Uganda and Tanzania in a bid to grow Insurance penetration in these markets,” Mr. Juma said.
Insurance fraud still remains of concern to industry players and Jubilee Holdings is tightening its reins by improving the quality of people and companies that it insures through its new systems.
“With fraud being a big headache for industry players, Jubilee Holdings has now adopted strict vetting mechanisms for anyone who wants to take up an insurance policy. It is our hope that the courts will enforce stiffer penalties on those charged with Insurance fraud, as the current fines aren’t punitive enough,” Mr. Juma said.
Jubilee Holdings will also be celebrating its’ 80th year in existence as the first locally incorporated insurance company. To celebrate this milestone, the company will be rolling out a series of events including a Jubilee training academy, which will be used to provide state-of-the-art learning with a well-trained team of professionals, dedicated to providing its staff individual and professional development opportunities in Insurance; commence on the construction of a new Nairobi National Park viewpoint; renovation of key schools; run several medical camps in the region; construct several water projects and also organize a painting competition for all primary schools with an offer of several scholarships for outstanding paintings, amongst other activities.
Jubilee Holdings’ ten-year financial journey has seen its assets grow to Ksh87.5 billion from Ksh15.3 billion ten years ago. Last year, Jubilee Group paid Ksh560 million as dividends to shareholders, a 72% increase over a ten year period, with the earning per share growing fivefold. The Jubilee Group declared an interim dividend of 20% or Ksh 1.00 per share.
About Jubilee Insurance
Jubilee Insurance was established in August 1937, as the first locally incorporated Insurance Company based in Mombasa. Today, Jubilee Insurance has spread its sphere of influence throughout East Africa to become the largest Composite insurer in the region, handling both long-term and short-term insurance, with over 1.1 million clients spanning Kenya, Uganda, Tanzania, Burundi and Mauritius. It has grown to become the largest provider of medical insurance across East Africa and provides medical insurance to many of the region’s blue chip companies. It is the only ISO certified insurance group that has cross listed on The Nairobi Securities Exchange (NSE), Dar es Salaam Stock Exchange (DSE) and Uganda Securities Exchange. Its regional offices are highly rated on leadership, quality and risk management and have been awarded an AA- in Kenya and Uganda, and an A+ in Tanzania by Global Credit Rating.
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