Jubilee Insurance has posted a Sh4.5 billion profit after tax for the half-year ended June 30, a 150 per cent jump compared to Sh1.8 billion reported same period last year.
The significant jump is partly pegged on the gain of Sh 2.1 billion from the sale of 66 per cent of its Kenyan General Insurance business to the Allianz group, in May this year.
The results were driven by robust operating performance across all business segments with a 17 per cent increase in insurance results from Sh1.4 billion in 2020 to Sh1.6 billion in 2021, coupled with a 141 per cent increase in investment income.
During the period under review, Gross Written Premium grew to Sh22.2 billion from Sh20.2 billion last year even as the Covid-19 pandemic impacted heavily on key sectors of the economy.
Net insurance premium revenue jumped to Sh11.2 billion compared to Sh10.1 billion in half-year 2019.
The Group’s total assets grew eight per cent to Sh151.72 billion from Sh140.1 billion as at June 2020 while total shareholders’ equity and reserves increased 24 per cent, from Sh29.7 billion to Sh 36.8 billion.
The Group’s share of profit of associates also grew to Sh886 million from Sh303 million.
These enhanced returns included higher earnings from investment in the Bujagali power project in Uganda, in which Jubilee attained an additional shareholding in June 2020.
Chairman Nizar Juma said the Group is well positioned to execute its strategic focus on the life and medical business segments, whilst cooperating with Allianz, its new strategic partner, to create additional value in the general insurance segment.
“ We continue to place emphasis on exceptional investment returns, expense discipline, and topline growth to provide value to both our shareholders and customers,”he said.
Juma added: “This is extremely important at a time of both prolonged uncertainty and the need for insurance businesses to build financial capacity in readiness for increased capital requirements arising from extensions of Risk Based Capital regimes across our markets and the, as yet unknown, impacts of IFRS 17 in 2023.”
Jubilee Holdings Limited regional CEO Julius Kipngetich said with the rollout of Covid-19 vaccination programmes across the country, the group expects a gradual return to more normal economic patterns.
“We will continue to forge ahead with an even stronger focus on product differentiation. We are well ahead of our plans in developing the capability to become a fully digital company to be
able to offer all our customers a seamless end-to-end online product experience,” he said.
The sale of its Kenyan General Insurance business to the Allianz Group is currently undergoing regulatory approvals in other markets with Uganda poised to complete next and the remaining markets by the end of 2021.
The board has declared an interim dividend of Sh1 per share which will be payable on or about October 11.