Jubilee Holdings Limited, East Africa’s largest insurance group, has posted a profit before tax of Kes. 5.08 billion for the financial period ended 31st December 2020, a 1.4% increase compared to the same period in 2019.
The group attributed the profit to the confidence placed in the Group by their clients, continued focus on sound underwriting practices, tightening of controls over claims and expenses, and the prudently diversified investment portfolio held by the Group.
Jubilee Insurance declared a final dividend of Kes 580 million for the financial period ended 31st December 2020, after posting a 2% rise in full-year net profit to KSh4.1 billion. The company’s shareholders will receive a Kes 8 dividend for every ordinary share held.
Total Gross Written Premiums and deposit administration contributions in the insurance company declined slightly to Kes. 37.97billion compared to Kes. 38.19 billion in 2019.
Jubilee Insurance recorded a Profit After Tax stood of Kes. 4.09 billion a slight improvement compared to Kes.
4.02 billion in 2019. The total comprehensive income after tax for 2020 increased by 48.7% to Kes. 5.76 billion from Kes. 3.90 billion in 2019. The increase in comprehensive income was 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% to Kes. 145.86 billion from Kes. 130.08 billion recorded in 2019, while the total shareholders’ equity and reserves increased 15.8% from Kes. 28.25 billion to Kes. 32.72 billion, due to an increase in retained earnings and reserves.
However, the Kenyan Insurer was not immune to the effects of the economic turmoil brought about by the COVID-19 pandemic, posting an 11% decline in gross written premiums.
The onset of the pandemic saw more people seek medical insurance, with the Group’s medical business growing by 10%. Life Insurance business maintained volumes, with Individual Life business reporting a robust growth of 16%.
Jubilee Insurance Outlook
The 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 inturn maintaining our industry leadership position,” Mr Nizar Juma
Jubilee holdings have expressed optimism in 2021, saying it is accelerating its digitisation efforts to enhance customer services and accessibility further and continuously improve on the risk prevention and control systems as the world moves towards a post-covid era.