Jubilee Holdings to Pay US$6.03mn in Total Dividend for FY20

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Kenyan-based Jubilee Insurance Holdings (JHL) will pay a final dividend of Sh8 per share for the 2020 financial year. 

In a statement, JHL says its shareholders confirmed the amount during the virtual 2021 Annual General Meeting held in Nairobi. 

This therefore brings to Sh9.00 the total dividend per share and payment of Sh652.3 million or US$6.03 million as total dividend for the year. 

The final dividend will be paid on July 26th, 2021 to shareholders registered as of May 26th, 2021.

JHL earned a profit before tax of Sh5.08 billion for the financial period ended 31st December 2020, an increase of Sh70 million compared to 2019. 

This is despite operating in a challenging environment characterized by the effects of COVID-19 and related lockdowns. 

The Group’s total assets increased by 12.1 percent to Sh145.86 billion from Sh130.08 billion and total shareholders’ equity and reserves increased 15.8 percent from Sh28.25 billion to Sh32.72 billion, due to an increase in retained earnings and reserves. 

During the year, JHL also entered into a strategic partnership with Allianz Africa, and completed the Kenya part of the partnership transaction on May 04th 2021 whereby Allianz became the majority shareholder in Jubilee General Insurance Limited in Kenya. 

This is after acquiring a 66 percent stake from Jubilee Holdings Limited (JHL). JHL will retain significant minority shareholding. 

“The Kenya company now operates under the name of “Jubilee Allianz General Insurance (K) Limited” and will leverage the decades long expertise from both partners to bring international market excellence to its customers,” JHL said in the statement. 

The transaction in Uganda, Tanzania, Burundi and Mauritius is awaiting regulatory approvals and completion of the separation of the General and Medical business into two separate companies before Allianz can purchase the agreed interests in the General companies.

At the AGM, Jubilee Holdings Limited the Group Chairman, Nizar Juma noted that JHL continues to make innovative changes to products to meet the changing and new customer expectations.

“We are now offering medical and wellness products that range from microinsurance to those suitable for seniors and for all ages and income levels in-between. Many of these products can now be purchased directly and easily from our website, and the Group will continue to add more products and other customer service features to the digital platform to make it easier for customers to interact with the insurance subsidiaries.” 

“Our solid financial standing backed by a robust balance sheet and strong profit and cashflow generation over the years has enabled Jubilee Holdings Limited to not only pursue growth initiatives such as collaborations but has also paved the way for accelerated and prudent capital deployment measures for sustained growth. We are keen to continue with this trajectory with an eye to sustainable growth and enhanced customer service, ” Juma added. 

The shareholders also approved an amendment of the Company’s Articles of Association to allow the Company to buy back its own shares in the future in accordance with the provisions of the Companies Act 2015 and guidelines that are currently under development by the Capital Markets Authority. 

The ability of a public listed company to buy back its own shares is a common feature of most developed capital markets and is often used as a tool to return value to the shareholders.

A buyback is typically done on the open market when the company purchases the stock from its shareholders directly and returns them to the treasury of the company. 

Juma stated that when a share buyback program if approved by its Board, the program will be submitted to the shareholders at a general meeting.

Wanjiku Njuguna is a Kenyan-based business reporter with experience of more than eight years.

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