Jubilee Holding announces a US$16m profit for the first half of 2020

KENYAJubilee Holdings Limited, a financial service holding company, has announced a profit of KSh1.8 billion (US$16.63m) for the half-year ended June 30th, 2020.

The performance has been attributed to improved insurance underwriting results from all its Group operations across the region and robust investment income from its well-diversified and secure investment portfolios that are designed to deliver consistent long-term returns.

The Group recorded a Profit after tax of KSh1.8 billion (US$16.63m), an increase of 4.8 percent from 2019, while total assets increased by 8 percent to KSh140.1 billion (US$1.29bn) from KSh130.1billion (US$1.2bn).

During the same period, Total Comprehensive Income increased by 5.1 percent to KSh1.8 billion (US$16.63m) from KSh1.7 billion (US$15.71m) for the same period in 2019, and Profit After Tax remains unchanged at KSh1.8 billion (US$16.63m).

Commenting on the performance, Jubilee Holdings Limited Group Chairman Nizar Juma noted that COVID-19 has severely impacted insurance operations globally.

“The first half of the year was characterized by significant macroeconomic and financial impacts resulting from the COVID-19 pandemic. It is however gratifying to note that despite the unprecedented circumstances, the Group’s half-year results demonstrate a resilient operating performance and confirms the Group’s conservative and prudent approach to both the insurance and investment components of our business,”Juma said.

Whilst overall growth in premiums stalled, the Group registered lower claims volumes in the motor and health insurance, but also experienced increased surrenders and withdrawals within the life insurance operations.

However, overall investment income increased by 3.8 percent to KSh4.98 billion (US$46.02m) as a result of the Group’s growing portfolio of investment assets.

The Life Business continued to show good performance accounting for 37 percent of the Group’s Gross Written Premiums while contributing 22percent towards the profit mix.

Group Life performed better than 2019, contributed to by portfolio management and the onboarding of new clients.

Individual Life performed better than last year through the bancassurance platform and increased use of digital channels, which enabled Jubilee to continue to serve customers even as lockdowns constrained movement.

The Life Business responded quickly to COVID -19 by putting in place measures to protect its policyholders, and introduced a raft of waivers, including; three months premium holiday, reimbursement of medical for a child tested positive for COVID-19 and an advance cash payment of 10% of the customer’s sum assured if they test positive.

The General Business recorded 28% of the Group’s Gross Written Premiums while contributing 36 percent towards the profit mix due to a significant improvement in underwriting results in comparison to the same period in 2019 which saw an improvement in the combined ratio.

These improvements have been achieved by a rigorous review of loss-making accounts, faster settlement of claims in motor insurance, retention of a profitable business book and process re-engineering across the board.

“As a result of the COVID-19 pandemic we put in place the necessary “Work from Home” measures to ensure that all business processes continued without interruptions. Additionally, the Group accelerated the innovation and digital transformation process to provide online sales to customers through the launch of the Self-Service Digital Portal,” Jubilee Holdings Regional CEO Julius Kipng’etich noted.

On the CSR front, Jubilee Holdings Limited gave support to its subsidiaries across the region impacted by Covid-19, through the donation of health supplies and equipment valued at KSh30 Million (US$0.28m).

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