Jubilee Life Insurance saw its net profit rise 107 times in the year to December 2024, driven by a surge in investment income.
The company, a fully owned subsidiary of Jubilee Holdings, made a net income of Sh2.07 billion in the review period compared to Sh19.4 million a year earlier.
The company recorded a strong performance in its investment portfolio, with net investment income surging by 87.26 percent to Sh17.06 billion from Sh9.11 billion.
This contributed to the net financial result growing to Sh3.3 billion, reversing a loss of Sh1.1 billion.
Insurers benefitted from stronger returns in major asset classes last year. The returns on bank deposits, Treasury bills and bonds rose last year to high double digits, boosting earnings for cash-flush investors including insurers and pension funds.
Shares of most companies listed on the Nairobi Securities Exchange also appreciated, lifting capital gains for shareholders who also receive dividends mostly from blue-chip firms.
Jubilee Life’s insurance service earnings after expenses stood at Sh183.9 million, declining from Sh1 billion.
This was driven by higher costs and a dip in insurance revenue to Sh4.8 billion from Sh5.2 billion.
Chief Executive Asman Mugambi said in a statement on Thursday that the company was taking a long-term view and remained focused on strengthening the fundamentals of the business.
“We’re encouraged by the strides we’ve made, particularly in the performance of our investment portfolio,” he said.
“While there has been some pressure on insurance revenue and rising service costs, we remain focused on building a strong, stable business. Our priority is to stay connected to our customers and develop solutions that truly serve them”.
The company has invested in digital products and customer-centric solutions designed to make financial planning more accessible and responsive to real-life needs.
Jubilee Life is among the entities owned by Jubilee Holdings and which have been restructured to boost efficiencies and to reflect changes following the purchase of majority stakes in the Nairobi Securities Exchange-listed firm’s general insurance operations by Allianz.
Jubilee Health Insurance, Jubilee Life Insurance, and Jubilee General Insurance were demerged into independent entities in 2023.
“This has driven further growth and significantly increased insurance penetration across the region, while allowing each entity to focus on its core strengths,” Jubilee Holdings said earlier.
