Allianz Group share sale deal pushes Jubilee profit up to Sh4.5 billion

Jubilee Holdings Plc (JHL) profit for the six months to June has more than doubled to Kes4.5 billion from Kes1.8 billion last year attributable to one-off gains from the sale of part general insurance business.

During the period, East Africa’s largest insurer booked Kes2.1 billion from the sale of 66 per cent of its general insurance business in Kenya to Allianz Group.

In the half, the company’s total comprehensive income after tax increased by 140 per cent to Kes4.241 billion from Kes1.769 billion in 2020.

JHL is expected to complete the sale of its general business across its subsidiaries by December, this year, once industry regulators give the greenlight.

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“We continue to place emphasis on exceptional investment returns, expense discipline, and topline growth to provide value to both our shareholders and customers,” noted Jubilee Holdings Ltd Group Chairman Nizar Juma.

“This is extremely important at a time of both prolonged uncertainty and the need for insurance businesses to build financial capacity in readiness for increased capital requirements arising from extensions of Risk Based Capital regimes across our markets and the, as yet unknown, impacts of IFRS 17 in 2023,” Mr Juma added.

JHL gross written premiums in the period increased by 10 per cent to Kes22.2 billion from a lower Kes20.2 billion last year.

“We are well ahead of our plans in developing the capability to become a fully digital company to be able to offer all our customers a seamless end-to-end online product experience,” noted JHL Regional CEO, Dr Julius Kipngetich.

Jubilee Holdings board of directors have recommended the payment of a Kes1 dividend per share for a total of Kes72 million that will be paid in October.

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