Growth partly driven by profits in Uganda and Burundi, and sale of its controlling interests in the general insurance business.
Jubilee Holdings that operates insurance businesses across the region has posted a profit of $73.04 million in 2021, a 66 percent rise from $44.34 million in 2020, with the profits in Uganda and Burundi growing the most.
Nizar Juma, Jubilee Holdings chairman, said the company’s profits grew in all its subsidiaries including Tanzania, Kenya, and Mauritius, but growth in Burundi and Uganda were greater, as uptake of insurance improved during the period.
The insurer said that the growth was also partly driven by sale of its controlling interests in the general insurance business in Kenya and Uganda, to Kenyan insurance firm Allianz, which now controls 66 percent of Jubilee’s insurance business.
Mr Juma said the profit rise “signals our renewed focus to take advantage of the emerging opportunities in 2022 by executing our brand strategy that is premised on delivering the best service, strong operating profits, and consistent value growth.”
“In 2021, our primary focus was on product and service improvement through the deployment of new offerings especially in the SME and micro segments,” Dr Julius Kipng’etich, Jubilee’s Group CEO said.
Dr Kipng’etich added that their premium transactions grew seven times, exceeding $1.3 million, as a result of their deployment of digital platforms to enhance distribution capabilities.
The company also posted an eight percent growth in its medical insurance division, but recorded drop in profitability by $4.3 million following a 59 percent rise in claims in the period.
Mr Juma said fraud remains a significant challenge to the medical division, adding that the company will invest $23 million in systems over the next five years, to combat fraud which consistently reduces its profitability.
Following the increased profit, Jubilee announced that it will pay a dividend of $0.078 (Ksh14) per share, totalling to $8.82 million (KSh1.015 billion) to shareholders across the region.
Looking into the future, the insurer said it “has embarked on an ambitious digital transformation agenda across its businesses in East Africa.”
This mainly looks to combat fraud in claims and improve profitability.
Jubilee also hopes to tap into the Ethiopia and DRC markets, but said Ethiopia has still not opened its borders to foreign insurers while plans in Congo are in progress but are slowed by political challenges.