Group CEO of Jubilee Holdings Dr Julius Kipng'etich delivers his speech during the Federation of Kenya Employers 65th Annual General Meeting and launch of its Strategic Plan for 2024-2028 held on May 29, 2024 at JW Marriott in Nairobi. Photo credit: Billy Ogada | Nation Media Group By Patrick Alushula Business Reporter Nation Media Group
Jubilee Holdings Limited has declared a record dividend of Sh14.30 per share amounting to Sh1.036 billion for the financial year ended December 2023, supported by a special distribution from final gain on sale of majority stakes in general insurance subsidiaries to global underwriter Allianz.
The firm’s board on Wednesday recommended payment of Sh10 per share as ordinary dividend and a special dividend of Sh2.30 per share, adding to the Sh2 per share interim payout that had been made in early October last year.
The latest payout marks a 19.2 percent rise from Sh12 per share paid on the financial year ended December 2022 and topples the previous peak of Sh1.015 billion that the Nairobi Securities Exchange-listed firm paid on the 2021 results.
“Both the 2023 final dividend and special dividend will be paid on or about 25th July 2024 to members on the register of members at the close of business on 25th June 2024, subject to approval at the annual general meeting,” said Jubilee.
The increased dividend distribution was despite the net profit for the financial year ended December 2023 falling by 19.8 percent to Sh4.42 billion from the restated 2022 net earnings of Sh5.51 billion.
The decline in profit was largely because of the fall in the gain on disposal of subsidiaries to Sh246.86 million from Sh2.16 billion booked in the prior year.
The restated 2022 profit was to reflect the shift to a new accounting standard, International Financial Reporting Standard (IFRS) 17) that replaced IFRS 4 starting January last year.
Jubilee in 2021 sold majority stakes in its general insurance business to Allianz SE and has been booking gains from the deal, supporting profit growth and special dividends.
Insurance revenue for last year hit Sh22.78 billion from Sh21.1 billion, driven by growth in the health underwriting business. Jubilee said the revenue was up 13 percent, excluding the deconsolidated business following the Allianz deal.
“The health insurance sector, spearheaded by Health Kenya, was a key driver of the revenue growth. The segment’s focus on innovation and customer-centric solutions resonated well with the market leading to the reinstatement of Jubilee Health Insurance as the number one health insurer in the region,” said the firm.
Insurance service expenses rose to Sh21.83 billion from Sh19.6 billion. Jubilee said the rise was due to strategic investment in technology, people, and marketing as well as a rise in claims in medical insurance.
Jubilee, however, said the strategic investments in technology, marketing and talent development were partly offset by a strong focus on cost cutting, resulting in Sh380 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 Nizar Juma, chairman at Jubilee.
While commenting about the company’s corporate social responsibility efforts, Jubilee Holdings group CEO Julius Kipng’etich said: “Our heritage fuels our unwavering commitment to advancing societal good across the region. We are dedicated to deploying our resources to uplift the communities we serve; address pressing needs and foster sustainable development for a brighter future.”
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