Jubilee declares Sh870m dividend on the windfall from Allianz deals


From left: Juan Cazcarra, Group Chief Operating Officer; Nizar Juma (center), Group Chairman, Jubilee Holdings Ltd and Dr Julius Kipngetich (right), Group Chief Executive Officer review the full year financial results for the period ended December 31, 2022. FILE PHOTO | POOL

Jubilee Holdings is set to pay a dividend of Sh869.6 million for the year ended December comprising an ordinary payout of Sh9 per share and a special distribution of Sh3 per share.

The company had paid a total dividend of Sh1 billion for the prior year which included the standard payout of Sh9 per share and a special one of Sh5 per share.

The special dividends in the two years arise from the large gains the insurer has recorded from the sale of majority stakes in its general insurance businesses to Allianz SE.

The special payouts have boosted cash returns over the normal distributions of Sh652.2 million or Sh9 per share.

The new dividend –comprising the final payout of Sh8 per share and the special distribution of Sh3 per share— will be remitted on July 26 to shareholders on the register as of June 14.

The insurer had paid an interim dividend of Sh1 per share last year.

“We are committed to creating maximum value for all our stakeholders and achieving long-term business success,” Jubilee’s chairman Nizar Juma said.

The company’s net income in the review period declined 3.8 percent to Sh6.5 billion on a lower gain from the transactions with Allianz.

The insurer posted growth in investment income and a slight drop in premiums from insurance businesses it retained and which span life and health covers.

Jubilee’s gain from the sale of the general insurance businesses stood at Sh2.1 billion in the review period, down from Sh3.2 billion a year earlier.

The company said that excluding the impact of the transactions, its pre-tax profit in the review period stood at Sh5.6 billion and represented a four percent growth.

The insurer in 2020 started the process of selling stakes ranging from 51 percent to 66 percent in its general insurance subsidiaries in Kenya, Uganda, Tanzania, Burundi and Mauritius for a total of Sh10.8 billion.

The last of these transactions –the sale of Jubilee’s 54.15 percent stake in its former Mauritian subsidiary— was completed in October last year.

Jubilee’s net premiums fell six percent to Sh20.6 billion while investment income grew by a similar margin to Sh13.1 billion. Other income declined by Sh1 billion to Sh873.5 million.

The company retained its position as the most profitable and generous –as measured by absolute dividends— among Nairobi Securities Exchange-listed insurers.

It also joined other publicly-traded firms that have expanded their dividend payouts, enhancing returns for income-focused investors at a time when capital gains have disappeared on most stocks.

DTB Group, for instance, raised its dividend payout by 66 percent to Sh5 per share for the year ended December.

It was followed by Co-op Bank which increased its dividend payout by 50 percent to Sh1.5 per share. Absa Bank Kenya enhanced its dividend by 22.7 percent to Sh1.35 per share.

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Note: The results are not exact but very close to the actual.