BY MARTIN MWITA
East Africa’s largest insurance company, Jubilee Holdings, has recorded a 19 per cent growth in its half-year profit, despite a volatile business environment in the region.
The insurer’s net profit for the half year ended June 30 rose to Ksh1.88 billion up from Ksh 1.58 billion during the same period in 2016.
The firm also recorded a 30 per cent jump on its total income to close at Ksh14.9 billion, up from Ksh11.4 billion last year, reflecting the positive rally it had at the Nairobi Securities Exchange in the first quarter of this year.
Jubilee Holdings chairman Nizar Juma has attributed the good performance to adoption of the changing insurance market needs both regional and globally.
“These impressive results were realised in an unpredictable business environment,” Juma said “Currently there is volatility both in the region and global markets, as well as regulatory changes.”
The insurer’s underwriting business grew by 23 per cent to Ksh1.1billion, while its gross written premiums closed at Ksh1.42 billion.
It’s total assets value grew to Ksh101.1 billion, from Ksh90.6 billion in the same period last year.
As of June 30, Jubilee had invested Ksh43.2billion in government securities, up from Ksh39.6 billion in the same period last year.
The NSE listed firm’s earning per share rose to Ksh26.05 up from Ksh21.15 in June 30, 2016, a 23 per cent growth, despite the bear run at the bourse in quarter one of 2017.
“Our share price which continues to sore demonstrates the confidence that we enjoy from our stakeholders, “Juma said.
Jubilee holdings enjoy a great insurance market share in Kenya, Tanzania, Uganda, Burundi and Mauritius.
It also has a presence in DR Congo where it has ventured into underwriting, after partnering with state owned insurance company-Sona, to provide medical insurance.
According to Jubilee, a non-competitive insurance market in the DRC has exposed locals to expensive insurance policies.
“Our decision to extend into that market has been driven by the need to provide affordable insurance solutions, “Juma said.