Jubilee Holdings has recorded a net profit of Ksh. 1.8 billion in the first six months of the year, mirroring its performance in a similar period in 2019 despite the economic effects of the Covid-19 pandemic.
In the period, the firm recorded a pre-tax profit of Ksh. 2.4 billion, an increase of 4.8% from 2019, while total assets increased by 8.0% to Ksh. 140.1 billion up from Ksh. 130.1 billion.
Commenting on the performance, Jubilee Holdings Limited Group Chairman Mr. Nizar Juma noted that COVID-19 has severely impacted insurance operations globally.
“The first half of the year was characterized by significant macroeconomic and financial impacts resulting from the COVID-19 pandemic. It is however gratifying to note that despite the unprecedented circumstances, the Group’s half-year results demonstrate a resilient operating performance and confirms the Group’s conservative and prudent approach to both the insurance and investment components of our business” Mr. Juma said.
The pandemic had mixed and varying impacts on the different lines of business of the Group. Whilst overall growth in premiums stalled, the Group registered lower claims volumes in the motor and health insurance, but also experienced increased surrenders and withdrawals within the life insurance operations. The lowering of the yield curve across the region had the dual negative impact of generating lower investment returns from the fixed income portfolio and necessitating an increase in the long-term insurance contract liabilities.
However, overall investment income increased by 3.8% to Ksh. 4.98 billion as a result of the Group’s growing portfolio of investment assets. The Group has also initiated efficiency measures across all companies to control expenses, which resulted in savings against budget at the half-year and identified opportunities to reduce costs further as efforts are made to navigate the challenges arising from the uncertainty created by the Covid outbreak.
The firm’s Life Business continued to show good performance accounting for 37% of the Group’s Gross Written Premiums while contributing 22% towards the profit mix. Group Life performed better than 2019, contributed to by portfolio management, and the onboarding of new clients. Individual Life performed better than last year through the bancassurance platform and increased the use of digital channels, which enabled Jubilee to continue to serve customers even as lockdowns constrained movement.
The firm’s Life Business responded quickly to Covid by putting in place measures to protect its policyholders, and introduced a raft of waivers, including; three months premium holiday, reimbursement of medical for a child tested positive for COVID-19 and an advance cash payment of 10% of the customer’s sum assured if they test positive.
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