Capital Markets

Jubilee declares interim dividend of Sh1 per share

jubilee agm

Jubilee Holdings chairman Nizar Juma (seated) with the board of directors during the insurer’s 83rd AGM in Nairobi on June 29, 2021. PHOTO | DIANA NGILA | NMG

Jubilee Holdings has declared an interim dividend of Sh1 per share or a total of Sh72.4 million for the half-year ended June, joining a few other listed firms that are making cash distributions to shareholders.

The insurer posted a 25.2 percent drop in net profit to Sh3.3 billion in the review period on lower premiums, investment income, and gains on the sale of subsidiaries.

“The directors recommend the payment of an interim dividend of Sh1 per share subject to withholding tax where applicable,” the company said in a statement. “The dividend will be paid on or about October 11 to members on the register at the close of business on September 9.”

Jubilee had paid a similar interim dividend of Sh1 per share a year earlier. Gross premiums declined six percent to Sh20.8 billion while other revenue dropped by a larger margin of 30.3 percent to Sh4.6 billion.

Jubilee also recorded a 22.3 percent drop in gains from the sale of a subsidiary to Sh1.6 billion.

The insurer has been selling majority stakes in its general insurance subsidiaries to Allianz SE, booking substantial gains that have contributed to its bottom-line.

The latest such transaction is in Mauritius and is expected to be completed in the next few weeks, with Jubilee set to receive Sh270 million in the deal.

Allianz will acquire a total stake of 66 percent in Jubilee Insurance Company of Mauritius Limited, buying additional shares from Aga Khan Fund for Economic Development SA (AKFED) which will sell its ownership of 11.85 percent.

The insurer currently owns 88.15 percent of the Mauritian subsidiary and its stake will drop to 34 percent at the conclusion of the transaction.

The deal is the last among a series of Jubilee’s partial divestiture in its general insurance businesses including those in Kenya, Uganda, Tanzania, and Burundi which have been completed.

The company in 2020 started the process of selling stakes ranging from 51 percent to 66 percent in its general insurance subsidiaries in the various markets to Allianz for a total of Sh10.8 billion.

[email protected]