Jubilee retains dividends against half year profit slide

Underwriter Jubilee Holdings has retained interim dividends at 20 per cent of earnings of Ksh.1 per share despite posting a 24.4 per cent net profit drop to Ksh.3.4 billion.

The company is set to pay the interim dividend which amounts to a total of Ksh.72.5 million on or before October 11.

Total income for the insurer as dipped by 16.2 per cent to Ksh.15 billion from Ksh.17.9 billion on the backdrop of a 5.9 per cent slide in gross written premiums and contributions following the sale of its general insurance unit to Allianz.

The transfer of the business was nevertheless partly offset by a Ksh.3 billion premium growth for its life business.

At the same time, the company has trimmed costs with net insurance benefits and claims to Ksh.10.3 billion from Ksh.12.2 billion a year prior.

Total expenses and commissions meanwhile only rose steadily to Ksh.3.5 billion from Ksh.3.4 billion last year.

“We are continuously minimizing our operating costs to increase our overall value. We remain on track in executing our growth strategy and confident of our leadership position in the insurance sector across the East African region, noted Jubilee Holdings Group Chairman Nizar Juma.

“We are investing heavily in competitive technology that will support the rapid deployment of new digital services that deliver value and quality experience to our customers.”

Despite recording greater costs efficiencies, Jubilee says its medical business was heavily impacted by the increase of claims experienced in the post pandemic cycle with the expenses rising by Ksh.460 million in the opening half of the year.

Last year, Jubilee Holdings transferred 62 per cent or Ksh.3.5 billion of its general business to Allianz in 2021.

During the six months, Jubilee Holdings booked gains of Ksh.1.6 billion from the ongoing sale of its general business units to Allianz.

Jubilee has stood by its dividend distribution policy even as most of its listed peers in the banking industry shun the pay-out in a capital preservation effort.