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.
