Jubilee Holdings has raised its dividend payout by 55.5 percent to a record Sh1 billion or Sh14 per share for the year ended December after posting strong earnings growth.
Jubilee recorded a 67 percent net profit growth to Sh6.8 billion in the year ended December, helped by investment income and higher net premiums.
Investment income rose by Sh4.6 billion to Sh15.9 billion. Net premiums on the other hand increased 8.9 percent to Sh21.9 billion.
Jubilee Holdings #ticker:JUB has raised its dividend payout by 55.5 percent to a record Sh1 billion or Sh14 per share for the year ended December after posting strong earnings growth.
The company declared a final dividend of Sh8 per share and a special payout of Sh5 per share to reward shareholders after signing an agreement to sell majority stakes in its general insurance subsidiaries to Allianz SE.
“The board is also pleased to recommend for shareholders’ approval, a special dividend of Sh5 per share to reflect the impact of the Jubilee Allianz transaction,” the Nairobi Securities Exchange #ticker:NSE -listed firm said in a statement.
“Both the 2021 final dividend and special dividend will be paid on or about July 25, 2022 to members on the register of members at the close of business on June 22, 2022.”
The company had already paid an interim dividend of Sh1 per share. The special payout raises the dividend to a total of Sh14 per share, up from the Sh9 paid for the previous year.
Jubilee recorded a 67 percent net profit growth to Sh6.8 billion in the year ended December, helped by investment income and higher net premiums.
Investment income rose by Sh4.6 billion to Sh15.9 billion. Net premiums on the other hand increased 8.9 percent to Sh21.9 billion.
Expenses and commissions rose by a marginal 2.3 percent to Sh9 billion.
“We are very happy with our results. We are still seeing effects of the Covid-19 pandemic but our performance demonstrated resilience,” Jubilee’s chairman Nizar Juma said at an investor briefing on Thursday.
The company signed an agreement in 2020 to sell stakes ranging from 51 percent to 66 percent in its general insurance subsidiaries in Kenya, Tanzania, Uganda, Burundi, and Mauritius to Allianz for a total of Sh10.8 billion.
The transactions are set to earn Jubilee billions of shillings worth of gains once they are completed.
The Kenya, Uganda, and Burundi transactions have been concluded and the insurer expects to finalise the Tanzania and Mauritius transactions later this year.
Jubilee will receive a total of Sh7.75 billion in the deals with Allianz while Sh3 billion will be invested in the operating businesses in which the NSE-listed firm will retain minority stakes.
