Jubilee pays special dividend after receipt of Ksh.3.2B from Allianz

Regional based insurer Jubilee Holdings will pay a special dividend of Ksh.5 per share to shareholders after the receipt of Ksh.3.2 billion from Allianz.

The proceeds represent the first tranche of payments from Jubilee’s sale of its regional general insurance business including Kenya, Uganda, Tanzania, Burundi and Mauritius.

Added to its ordinary payout of Ksh.9 per share, the special dividend takes the company’s total shareholder payout to Ksh.1.015 billion down from Ksh.652 million in 2020.

Jubilee expects the remaining transactions off the Ksh.10 billion deal with Allianz to close by May but the balance of payments is expected to trickle in over the medium term to 2024.

“We have now completed our transaction with Allianz in Kenya and Uganda. In Tanzania, we are awaiting regulatory approval but the transaction stands complete,” noted Jubilee Holdings Plc Chairman Nizar Juma.

The sale of the general insurance business in Burundi is expected to close shortly while a similar deal in Mauritius is expected to take longer with due diligence still ongoing.

During the year, the Group posted a 66 per cent jump in net profit to Ksh.6.8 billion from Ksh.4.1 billion on improved investment income.

The investment income was up by 40.7 per cent at Ksh.15.9 billion from Ksh.11.3 billion in 2020.

Nevertheless, Jubilee’s gross written premiums grew slower by a mere two per cent to Ksh.30.6 billion after the sale of the general insurance business.

However, the Group held off against an industry wide spike in claims with net insurance benefits and claims paid rising by 16.6 per cent to Ksh.23.8 billion from Ksh.20.4 billion.