Jubilee Holdings Limited (JHL) full year insurance revenue grew by 8pc last year to reach Ksh 22.8 billion compared to Ksh 21.1 billion the insurer reported in 2022.
Despite higher earnings supported by health companies in Kenya, the insurer incurred higher insurance service expenses which widened to Ksh 21.8 billion as at December 31 last year, compared to Ksh 19.6 billion a year earlier.
The firm’s profitability was also hurt by higher net expenses from reinsurance contracts which widened to Ksh 275.8 million from Ksh 30.8 million.
“Insurance Expenses increased due to the strategic investment in technology, people, and marketing. Additionally, medical inflation and a highly competitive market led to a high claims experience in our health companies during the year,” said the firm.
According to Chairman Nizar Juma, JHL’s strategic investments in technology, marketing and talent development was partly offset by a strong focus on cost cutting, resulting to Ksh 380 million in savings.
“Our strategic investment in technology is already bearing fruit. In under 20 months since its implementation, technology is undeniably a game changer for our business. We will continue to maximize on tech to ensure the delivery of maximum value to all our stakeholders,” said Juma.
During the year under review, Jubilee Holdings net profits declined by 20pc to Ksh 4.4 billion compared to Ksh 5.5 billion the firm reported over the same period in 2022.
Nonetheless JHL’s total income grew to Ksh 8 billon from Ksh 7 billion as assets grew by 14pc from Ksh 169 billion to Ksh 192 billion.
The firm has declared a dividend record of Ksh 14.3 per share and a payout ratio of 24pc achieving a total payout of Ksh 1.04 billion.
The total dividend per share of Ksh 14.3 includes an ordinary dividend of Ksh 12 from Ksh 9 in 2022 and an extraordinary dividend of Ksh 2.3 from the remaining gain of the General Insurance’s sale to Allianz, the firm said.
