Jubilee Holdings net profit for the six months ended June has increased by 22.7 percent to Sh2.5 billion on increased income from insurance, with the insurer maintaining an interim dividend of Sh2 per share.
The rise in half year net profit from Sh2.04 billion the year before came in the period insurance service revenue —which is money from written premiums— rose 28.4 percent to Sh12.58 billion from Sh9.8 billion.
Jubilee said the growth in profit was driven by increased performance in life and health business lines, riding on improvement in sales, claims control and technology-driven efficiency.
The review period however saw insurance service expenses, mainly made up of claims paid, rose to Sh11.3 billion from Sh9.7 billion.
This left Jubilee with a net insurance gain of Sh959.92 million compared with the previous period when it lost Sh107.15 million.
On the back of improved profits, Jubilee has maintained dividends at Sh2 per share amounting to Sh144.95 million.
The company said it will pay the interim dividend on or about October 11 to members on the company’s register at the close of business on September 6.
The interim payout follows the Sh10 per share ordinary dividend and a special dividend of Sh2.30 per share that shareholders were given last month as final payout for the 2023 full year performance.
Jubilee Holdings Chairman Zul Abdul said the half-year performance and the interim dividend highlights the group’s commitment to delivering strong returns for its stakeholders.
“This performance reflects the resilience of our core businesses and the success of our strategic initiatives, particularly in claims management and cost control.
“As we move forward, we will continue to capitalize on our solid financial foundation and broaden our product offerings to maintain this positive trajectory,” said Mr Abdul.
“We are confident that Jubilee Holdings is well-positioned to conclude the year on a high note, further enhancing shareholder value and solidifying our leadership in the industry.”
Jubilee in 2022 rolled out a digital strategy in which it committed to spend Sh2.25 billion, spread over five years, on digital transformation including investing in robotics, artificial intelligence and data analytics as it eyes customised covers and improved service delivery.
Jubilee says the digital investment is so far paying off with claims processing time having reduced by 40 percent amid improved fraud detection capabilities.
The insurer also introduced Maisha Fiti 2.0, the wellness app that includes telemedicine, teleconsultation, self-navigation, community engagement and access to informative articles and events.
“Our company is combining innovative digital tools with our deep industry expertise to enhance operational efficiency and address real market needs with precision and care.
“This approach keeps us agile and responsive, allowing us to create meaningful customer experiences while driving sustainable growth for the company,” said Juan Cazcarra, Jubilee's chief operating officer.
The insurer says it will invest “significant resources” into the launch of a strategic campaign titled “There’s Living and There’s Living Free.”
The initiative aims to demystify the complexities of insurance by presenting insurance and investment solutions in accessible and relatable languages throughout East Africa.
