Jubilee Holdings profit before tax hit Ksh5.206 billion for the half-year ended 30th June, 2021, representing an increase of 119% from a similar period last year. This significant jump was partly due to the gain of Ksh2.074 billion from the sale of 66% stake in its Kenyan general insurance business to Allianz Group, which was sealed on 4th May, 2021.
Pretax profit for the insurance business grew by an impressive 32% from Ksh2.377 billion to Ksh3.132 billion. Total gross written premiums and deposit administration contributions expanded by 10% to Ksh22.2 billion compared to Ksh20.2 billion in 2020 due to a dynamic growth of 20% in medical business and a 36% increase in annualized premium equivalent sales.
This strong performance is attributed to Jubilee’s diversified business and investment portfolio that cushioned it against Covid-19 p******c effects. Profit after tax stood at Ksh4.506 billion compared to Ksh1.830 billion in 2020, while total comprehensive income after tax increased by 140% to Ksh4.241 billion from Ksh1.769 billion in 2020.
Results were driven by robust operating performance across all business segments with a 17% increase in insurance results from Ksh1.394Bn in 2020 to Ksh1.625Bn in 2021, coupled with a 141% increase in investment income.
Jubilee Insurance registered an initial gain of Ksh2.073 billion from the sale of 66% of its Kenyan general insurance business to the Allianz Group. This transaction is currently undergoing regulatory approvals in other markets with Uganda poised to complete next and the remaining markets by the end of 2021.
The Group’s total assets increased 8% to Ksh151.72 billion from Ksh140.1 billion as at 30th June 2020 and total shareholders’ equity and reserves increased 24% from Ksh29.71 billion in 2020 billion to Ksh36.8 billion as at 30th June 2021: which was reflected in a growth of 141% in Jubilee Holdings Ltd’s overall investment income.
FINANCIAL RESULTS AT A GLANCE
- Profit Before Tax increased to Ksh5.206B (net profit Ksh4.506B) from Ksh2.377B (net profit Ksh1.830B).
- Gross Written Premiums increased to Kshs22.2B from Ksh20.2B.
- Investment Income increased to Ksh9.175B from Ksh4.976B.
- Total Comprehensive Income increased to Ksh4.241B from Ksh1.769B.
- Jubilee Life Insurance recorded a profit of Ksh911M from Ksh467M
- Contribution from Associates stood at Ksh886M up from Ksh303M.
The Group’s share of profit of associates grew strongly by 193% to Ksh886 million from Ksh303 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.
Jubilee Holdings Limited Group Chairman, Mr Nizar Juma, noted that, the significant growth achieved during the period strengthens JHL’s position as a regional market leader. He said it is well positioned to execute its strategic focus on the life and medical business segments, while cooperating with Allianz, its new strategic partner, to create additional value in the general insurance.
We are well ahead of our plans in developing the capability to become a fully digital company.
“This is 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 and the, as yet unknown, impacts of IFRS 17 in 2023,” Mr Juma said.
Dr Julius Kipngetich, Jubilee Holdings Ltd Regional CEO, noted that with the rollout of COVID-19 vaccination programmes across the country, the company expects a gradual return to more normal economic patterns. As a result, the company has already rolled out a vaccination drive for all its staff to ensure that they are well protected from the virus.
“We have also accelerated our digital innovation journey and the quality of our distribution network within key customer touch points. 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,” Dr Kipngetich noted.