Jubilee profits up by 19 percent

By Eric Akasa

Jubilee Holdings Ltd has announced their performance figures for the first six months of 2012. The Jubilee Group’s half year Profit before Tax rose by 19 percent to Kshs928 million from Kshs781 million in 2011. Gross revenue increased by 33 percent to Kshs­­10.6 billion from Kshs8.0 billion recorded in the same period last year.

Jubilee Holdings Chairman Nizar Juma said “As we celebrate our 75^th anniversary we are delighted to report that Jubilee remains the largest composite insurer, the largest General insurer and Medical insurer in Kenya, Uganda and Tanzania, and in East Africa. We are also pleased to be the leader in Pensions in Kenya and East Africa. Jubilee’s asset base has grown from Kshs38 billion to Kshs43 billion in the first half of 2012.”

“Our results amply demonstrate that we have the wisdom and experience of a 75 year old but the speed and agility of a 20 year old. This is how during the last eight years, Jubilee has grown tenfold,” said Mr Juma.

Revenue from short term business grew by an impressive 37 percent in the first half of the year to Kshs­­8.059 billion from Kshs5.896 billion in 2011, reflecting strategies implemented to improve operating efficiency, rigorous focus on risk management, and an innovative product development drive that saw Jubilee expand its products in agricultural insurance and Small and Medium Enterprise (SMEs) insurance.

Jubilee’s successful medical franchise continued to do well, and J-Care, the retail medical product tailored to young families has been well received in the East African market. Jubilee has dominated the Kenyan medical insurance market in the last five years, with a 32 percent market share in 2011. Jubilee’s medical insurance business also grew by 40 percent in Tanzania, and 50 percent in Uganda in the first half of 2012, compared to the same period in 2011.

Jubilee’s long term business grew by 21 percent to Kshs2.499 billion during the first six months of 2012, attributed to continued increase in the uptake of Jubilee’s products. Its customer focused education and asset building products continued to perform well, boosted by introduction of a product targeted for the youth, particularly university students.  Dubbed ‘Baada Ya Campo’, the product helps university students save money for use after graduation and during the time they are hunting for employment. Jubilee is making significant investments in new operating systems and customer service capabilities, to streamline its business.

 “Despite being the number one insurer in all these countries, we are good global Corporate Citizens. We pay all our taxes and observe the best practices in everything we do. Most importantly, each day, we demonstrate to the world that it is possible to develop and become a leader in our business in East Africa, without resorting to graft, for which we have zero tolerance.” Observes Mr. Juma.

Today Jubilee is also an equity partner in Kenya’s first independent power producer: Tsavo Power Company in Kipevu, which has increased the generation capacity in Kenya by over 20% and the US$860 million Bujagali Power project in Uganda which is now providing Uganda’s power needs. With its affiliate IPS, Jubilee is a major investor in SEACOM – the first fiber optics submarine cable that stretches 15,000 kms from South Africa to France, and provides communication to all the countries on its path at a fraction of the previous cost (based on satellite). Jubilee also has investments in banking, tourism, food processing and many other enterprises in Kenya and East Africa.

Investment income recorded a 47 percent growth to Kshs1.442 billion in the first half of 2012.  Group profit after tax attributable to shareholders grew by ­­17.3 percent to Kshs666.1 million in the first half of 2012 from Kshs568 million recorded in the same period in 2011.

The Jubilee Group declared dividend of 110 percent, and a 1:10 bonus share issue in May 2012. Earnings per share rose to Kshs11.1 in the first six months of 2012 from Kshs9.5 in the previous year.