- Regional insurer Jubilee Holdings Limited has cut dividend payout to shareholders to $6.18 million in 2022 from $6.69 million a year earlier.
- In line with the Group’s commitment to safeguarding people and the environment, Jubilee has set a target to be carbon neutral by 2030.
- Overall, the non-general business has grown by $51.2 million or 21per cent since 2020.
Regional insurer Jubilee Holdings Limited has cut dividend payout to shareholders to $6.18 million in 2022 from $6.69 million a year earlier. The declaration follows shareholders’ endorsement of the payment of a dividend of $0.064 per share plus a special dividend of $0.021 per share during the 2022 Annual General Meeting (AGM).
Following the board’s recommendation, the total dividend payment for the year now becomes $0.085 per share. Jubilee Holdings Limited has recorded a 4 per cent increase in profit from the core business despite the completion of the transfer of General Business to Allianz. The insurer maintains that the Group’s profit before tax remains ahead in the insurance sector.
Year of Recovery for Jubilee Holdings Limited
The dividend payment comes despite Jubilee Insurance reporting a slight decline in profit after tax, which fell to $46.89 million for the fiscal year ending December 31, 2022, from $48.31 the previous year.
During the AGM, Jubilee Holdings Limited Chairman Nizar Juma noted that although 2022 was a recovery year, the Group achieved excellent results. As such, the company maintain its leadership position across East Africa in terms of profit before tax. The Group also leads in assets and return on equity. What’s more, Juma says the firm is the number one health insurer in the region.
“East Africa’s economy experienced a slowed growth in 2022 because of inflation coupled with high interest rates and increasing debt. While the road to recovery was difficult, our company navigated uncertain market conditions while adapting to a rapidly changing landscape. We are delighted that the Group’s balance sheet remains solid and resilient,” noted Mr. Juma.
In its 2022 results, the company completed the partnership in the remaining countries with Allianz in the General insurance businesses in Burundi, Mauritius and Tanzania recording a gain of $15.63 million, which gave a combined profit before tax of $53.28 million for 2022.
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Group performance
In 2022, the gross written premium reached $267.9 million. This was 3 per cent lower than in 2021, impacted by the transfer of the general insurance business to the Allianz Group. Excluding this impact, the insurer’s topline grew by 16 per cent.
Overall, the non-general business has grown by $51.2 million or 21 per cent since 2020, when the sale of General business to Allianz began. The Group’s Total Assets increased by 9.8 per cent to $1.2 billion, which is the largest in the industry.
During the year, under phase one of the Changamk@ project, Jubilee Holdings focused on robotics, cloud, artificial intelligence and data capabilities. The Group has successfully migrated its core applications and infrastructure to the cloud enabling the business to pursue efficiency, agility, security, and end-to-end digital transformation.
Technology adoption
So far, over 50 robots have already been deployed across the region to improve business efficiency, security and to deter fraud. The Group has also introduced Artificial Intelligence to improve the claims process, further enhancing the customer’s experience.
This year, the company has embarked on the second phase of the digital transformation agenda focusing on customer experience, telematics, and data analytics.
This stage will support the development of more innovative and affordable insurance products improving accessibility and financial inclusion across the region.
In line with the Group’s commitment to proactively safeguard people and the environment, Jubilee says it has set an ambitious target to be carbon neutral by 2030.
ESG Integration in Jubilee Holdings Limited
To support the attainment of this ambition, Jubilee Holdings Limited has partnered with Net Zero International to compute its carbon emissions and draw a roadmap detailing action to prompt emission reductions, the required investment as well as mitigation needs.
The company has also taken significant steps to integrate environmental sustainability into its business practices, including the promotion of eco-friendly policies, the adoption of paperless operations and the exploration of innovative solutions to reduce environmental degradation.
“Companies have a responsibility to contribute to the well-being of society and the environment. Our company will continue to play its part as a responsible corporate citizen while addressing the concerns of our stakeholders. We are confident that all the initiatives we have undertaken will reduce environmental impact and protect the overall health of our planet,” said Mr Juma.
Also read: Why Africa must rethink insurance as climate change takes a toll
