Mr Julius Kipng’etich. FILE PHOTO | NMG
Jubilee Holdings has failed to grow its profit for the first
time in 12 years, slowed by a decline in earned premiums as expenses
shot up in the financial year ended December 2018.
Net
profits fell marginally by 1.3 percent to Sh4.18 billion in a period
described by the company as having been “exceptionally challenging”.
Jubilee
chairman Nizar Juma said that while 2018 was a challenging year for the
insurance industry across the region, but particularly in Kenya, the
insurer maintained strong performance.
“Our 80 years of
experience, lowest expense ratio in the industry and conservative
approach to investments has allowed us to post the impressive results
that we have released today” said Mr Juma.
“Jubilee’s growth in Uganda and Tanzania has strengthened our market leadership.”
The board has declared a final dividend of Sh8 per share for a combined interim and final dividend of Sh9 per share.
Total income dropped by 10.4 percent to Sh28 billion driven by 9.8 percent decline in gross earned premiums to Sh26.7 billion.
However,
operating profits rose by 4.8 percent to Sh5.41 billion, supported by a
strong contribution from insurance results at Sh2.9 billion against
Sh2.7 billion the previous year.
A higher tax expense
of Sh1.33 billion, being 33 percent higher than that paid in 2017,
dragged the net earnings. Other listed insurers that had reduced
earnings include Britam, Liberty, Sanlam and Kenya Re.
With underwriting profit of Sh753 million, Jubilee Kenya outperformed the industry.
Mr Juma attributed this on biometric identification that has helped reduce fraud.
“It makes it more difficult for fraudsters to falsify claims,” said CEO Julius Kipng’etich.
No comments:
Post a Comment