Philip Wahome
27 March 2008
Nairobi — Jubilee Holdings posted a 26 per cent increase on its pre-tax profit for the year ended December 31, 2007.
The profit grew from Sh642.8 million recorded in 2006 to Sh809.5 million after all its business segments - general, medical and life - recorded impressive results.
Gross revenues in the general business segment grew by almost 24 per cent in 2007 to Sh3.8 billion during the year. Improved underwriting standards and an increased focus on risk management allowed the insurance company improve its underlying profitability of the portfolio.
Similarly, Jubilee's medical business grew by an impressive 34 per cent in 2007, cementing its position as a market leader, which has seen the medical portfolio develop tenfold to Sh1.24 billion since 2003.
"Whilst we are extremely pleased with the business growth, what is more encouraging is the improvement in service and profitability that our medical team has achieved in 2007," said the Jubilee Holdings chairman, Nizar Juma.
He emphasised the strategic drive to develop life business which was undertaken in the second half of the year.
"This aggressive and focused strategy has resulted in an exceptional growth of 38 per cent year on year and is the first step towards the building of an increased presence in the life insurance segment," he added.
The performance has translated into an increased market share in Kenya, Uganda and Tanzania, which positions Jubilee Holdings as the largest composite insurer in the East Africa region.
Shareholders
The company, an affiliate of the Aga Khan Fund for Economic Development, the economic arm of the Aga Khan Development Network, is now recommending a dividend of Sh3.25 per share, which would be payable to all shareholders in the company's records as at May 19, 2008.
However, the money will be paid on June 11, 2008.
The company is now hoping to build on this impressive platform for its insurance operations beyond 2008.
It will embark on a strategic drive in the life insurance segment which will include the development of new products and innovation in distribution.
Jubilee insurance also plans to extend its successful medical business franchise across the region.
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