Jubilee shareholders set for Sh1b dividends as profits hit Sh6.8b

Jubilee Holdings shareholders are set for a record Sh1.015 billion dividend payout after the insurer’s net profit grew 67 per cent helped by the sale of a stake to global insurer Allianz.

The underwriter yesterday announced that net profit for the financial year ended December 2021 rose from Sh4.08 billion to Sh6.83 billion—a record high for the firm.

The jump in the bottom line was partly helped by the Sh3.2 billion it received in part for the sale of a 66 per cent stake in its Kenyan and Ugandan general insurance business to Allianz.

Jubilee Holdings Chairman Mr Nizar Juma said yesterday the board has on the back of the jump in profits declared Sh9 per share as normal dividend and Sh5 as special dividends, gifting shareholders part of the proceeds from the Allianz deal.

“We are very happy with the results. In addition to our arrangement with Allianz, we have done well with our business despite the fact that we are still having the effects of Covid-19,” said Mr Juma.

“We have demonstrated our ability to deliver profits consistently, thereby maintaining the financial strength to pay claims as well as give value to our shareholders in dividends.”

The total dividend will be Sh14 per share, amounting to Sh1.015 billion, which is a 56 per cent jump from the Sh652.26 million shareholders received in the previous year when per share payout was Sh9. Shareholders had already received a Sh1 per share dividend, amounting to Sh72.47 million, and the final payout will be done by July 25 if ratified in the annual general meeting.

The payout puts earnings per share—an indicator of how much money a company makes for each share of its stock—at Sh89.88 compared to Sh50.06 in the previous year.

At Sh6.83 billion, Jubilee’s profit is the highest in the industry. Among the insurers and reinsurers listed on Nairobi Securities Exchange, only Kenya Re was in the club of billion earnings at Sh2.97 billion.

Jubilee’s net insurance premiums revenue hit Sh21.95 billion from Sh20.14 billion, coming in the year group assets jumped by Sh9 billion to Sh155 billion.

Jubilee Insurance regional CEO Dr Julius Kipng'etich, however, said the medical insurance business saw a spike in claims, cutting the underwriting profits in this class by Sh500 million.

“A lot of those costs rose sharply towards the end of the year. There was a pent-up demand for medical services, which started to be used up in 2021,” said Dr Kipng'etich.

Chairman Mr Nizar said the firm has lined up $23 million (Sh2.65 billion) to invest in systems over the next five years to tame fraud.