Jubilee’s net earnings in the period climbed to Sh1.88 billion from Sh1.58 billion as gains from investments at the NSE, largely comprising government securities, increased four-and-a-half times.
Net value gain from investments in government paper and equities stood at Sh1.3 billion from a loss of Sh364.91 million a year earlier, a growth of 455.6 per cent.
Total income increased by 30.16 per cent to Sh14.89 billion, Jubilee reported, attributing it to a 13 per cent growth by the NSE after a two-year bear run.
Insurance group Jubilee Holdings’ #ticker:JUB net profit for six months ending June 30 rose 18.99 per cent largely helped by improved performance of the Nairobi bourse that helped to dampen a sharp jump in claims payments.
The listed firm’s net earnings in the period climbed to Sh1.88 billion from Sh1.58 billion as gains from investments at the Nairobi Securities Exchange, largely comprising government securities, increased four-and-a-half times.
Net value gain from investments in government paper and equities stood at Sh1.3 billion from a loss of Sh364.91 million a year earlier, a growth of 455.6 per cent.
Total income increased by 30.16 per cent to Sh14.89 billion, Jubilee reported, attributing it to a 13 per cent growth by the NSE after a two-year bear run.
“These impressive results were realised in an unpredictable business environment, currency volatility both in the regional and global market, as well as regulatory changes,” Jubilee Holdings chairman Nizar Juma said in a statement.
Jubilee booked gross premiums of Sh18.6 billion, 8.2 per cent better than previous year, helping to boost net premiums income by 21.89 per cent to Sh10.19 billion.
Net claims expanded by Sh2.9 billion, or 38.69 per cent, to Sh10.38 billion.
“Fraud detection continues to draw additional focus of our management in our general insurance business line.... we continue to invest in systems and mechanisms that facilitate fraud prevention, detection and effective action when it happens,” Mr Juma said.
The directors have recommended an interim dividend payment of Sh1 per share, same as last year’s.
The company expects to wrestle market share from existing medical insurers in DRC, where it set up late last year through a partnership with state-owned insurance company, Sona, by offering “affordable” pricing.
“A non-competitive insurance market in the DRC has exposed the citizens to expensive and overpriced policies and our decision to extend products into that market has been driven by the need to provide innovative and affordable insurance solutions,” Mr Juma said.
Jubilee also operates in Tanzania, Uganda, Burundi and Mauritius.
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