Jubilee posts $19.7 million half year profit, enters DRC market

Jubilee Insurance has today announced its entry into the Democratic Republic of Congo (DRC) market with its medical insurance cover, signalling its regional expansion that will see it enter into Ethiopia later next year, even as it saw its first half 2016 profits grow by 10 per cent. 

Jubilee Holdings Chairman Mr Nizar Juma, while announcing the insurance first half 2016 results said that the entry into the Kinshasa market is in line with its target to cover 5.5 million customers over the next five years and they are awaiting regulatory approvals before venturing into Ethiopia.

The company’s half year results saw its Group’s profit before tax grow by 10.2 per cent to Ksh$19.7 million over last year. The region’s leading Insurer saw its Gross Written Premium (GWP) grow by 6.8 percent to $171.8 million.

Jubilee recorded increased growth in investments by 30 per cent, Life business by 27.8 per cent, General business by 8 per cent and Medical segment by 6.1 per cent.

The insurer asset base at the end of the financial year was $876 million, the highest in the insurance sector that is a 6.3 per cent growth compared to the end of 2015.

Settling claims

“Jubilee Holdings claims payment grew by 17.6 per cent to $70 million. The ability of an insurance company to pay claims fast, irrespective of the amount is what makes an Insurance firm reliable. We are always happy to be at the forefront in settling customers’ claims, giving them the peace of mind. This is amply demonstrated by Jubilee winning the major loss award at the Think Business Insurance Awards amongst 12 significant awards won this year,” Juma said.

The firm also said it was increasing its investments by an additional $55 million in Uganda’s 250-megawatt Bujagali hydro-electric power project which is an additional 8.8 per cent to the project, where it has a joint 30-year concession deal to operate the plant that provides 40 per cent of Uganda’s power.

Jubilee has major investments in SEACOM, the first broadband submarine cable system covering over 15,000kms from South Africa to France.

"Projects like Bujagali and SEACOM provides us with guaranteed income in USD terms which give Jubilee the future stability it need. We have also increased our investments in the bond market and reduced investments in the equity markets," Mr Juma said.