JUBILEE REPORTS RECORD PERFORMANCE AND REINFORCES ITS INSURANCE MARKET LEADERSHIP

Jubilee Holdings Annual General Meeting resolved the distribution of a total dividend of Ksh 7.00 per share for 2012, increasing dividend payments for Jubilee shareholders to Kshs 419 million, representing a growth of 40% over the previous financial year.

Jubilee Holdings pre-tax profit increased robustly by 26% to Kshs 2.69 billion in 2012 and full year earnings per share increased by 17% to Kshs 35.32.

Jubilee Group Chairman, Mr. Nizar Juma, was pleased to confirm to shareholders that insurance gross premiums had for the first time topped the twenty billion mark, representing an increase of 27% to Kshs 20.25 billion in 2012, consolidating Jubilee’s position as the leading insurance group in East Africa.

Jubilee is the number 1 insurer in its core markets of Kenya, Uganda and Tanzania, where it has extended its leadership positions during 2012. Jubilee has been operating in its new markets of Burundi and Mauritius for 2 years and in 2012 both companies reported positive results and in a short period have built robust operations which are now number 3 and number 6, respectively in these markets.

In 2012 Jubilee strengthened its regional positioning in medical insurance growing by 32%. Burundi became the third market in which the group has market leadership, in addition to Kenya and Uganda where Jubilee has medical insurance market shares of 30% and 40% respectively and also leads the sector in terms of underwriting profitability.

The Jubilee Chairman informed shareholders that in 2012 the group had focussed on building its brand value and franchise in its core markets and the record results achieved have further strengthened Jubilee’s balance sheet and provide a strong base upon which development and expansion strategies can be built.

Into 2013 and 2014 Jubilee will once again actively engage with its market expansion strategy and research is being undertaken in target markets (Democratic Republic of Congo, Rwanda, South Sudan, Madagascar, and Mozambique) and scanning of opportunities in West Africa will also be undertaken.

“Jubilee’s successful business model and brand strength offer a platform for market expansion that can bring value to consumers in new African markets whilst increasing shareholder value,” said the Chairman.

Jubilee is the proud awardee of 14 trophies during 2012, including the best claims settlement award by the Association of Insurance Brokers of Kenya, Life insurer of the year, Medical insurer underwriter of the year, Marketing initiative of the year, Fraud detection and prevention initiatives of the year, the risk management award, and the best Pensions Fund provider. In Uganda, Jubilee was awarded the best insurer for 2012 by the Uganda Association of Insurance Brokers.

Jubilee’s record profits were supported by strong insurance operating results. Short-term underwriting profits grew by 13% to Ksh 611 million in 2012, achieving a combined ratio of 91.8%, which underlines the emphasis that Jubilee’s insurance management place on business quality and risk management. Jubilee’s life insurance business has started to build critical mass and in 2012 this resulted in increased profit contributions of Ksh 179 million from this fast growing and strategically important line of business.  Life insurance premium and Deposit Administration inflows grew by 23%.

Early in 2013, Jubilee entered into a partnership with leading international healthcare company, Bupa International. This partnership will enable Jubilee to provide Bupa’s world leading international health insurance products to its customers in Kenya, and later in the other countries where Jubilee operates. This partnership demonstrates Jubilee’s commitment to providing its clients and consumers in the region with access to high quality healthcare.

As a result of the growth in Jubilee’s insurance business, coupled with strong investment performance, group assets increased by 25% from Ksh 38.04 billion to Ksh 47.42 billion.

Other strategic priorities for 2013 include rapid growth within the Life business where Jubilee has identified clear growth opportunities, including bancassurance distribution, once the regulatory environment is in place. This will also link into Jubilee’s plans to split its composite companies into separate Short-term and Long-term insurance businesses in 2014, in line with imminent regulatory requirements.

This will be a significant strategic initiative for Jubilee and consultations are underway to identify the most efficient structures for the group to optimise the organisation as it prepares to execute its 2020 Vision. Jubilee will also consider acquisitions in its core markets, if these can be executed effectively to add market share efficiently and increase the value of the Jubilee franchise.

During 2012, Jubilee also committed resources towards key Corporate Social Responsibility (CSR) initiatives, including the Jubilee Insurance Samaritan Award (JISA), Canadian High Commission golf tournament, Mater Heart Run and the Standard Chartered marathon.