Jubilee Insurance profit more than doubles in H1

Jubilee Insurance has made headlines with a remarkable 150% increase in profits after tax for the first half of 2021, amounting to 4.5 billion cash links. This substantial growth is a significant leap from the 1.8 billion cash links reported during the same period in the previous year. The surge in profits can be attributed to the successful sale of its Kenyan General Insurance business to the Allianz Group for $100.9 million. While the transaction was finalized in the first quarter of 2021, regulatory approvals in key markets such as Tanzania, Uganda, Burundi, and Mauritius are still pending. To shed light on these impressive developments, Nizar Juma, the Chairman of Jubilee Holdings Limited, unpacked the company's financial performance and expansion strategies in an exclusive interview with CNBC Africa. Juma highlighted that the insurance giant's core business witnessed a 32% increase in bottom-line performance, driven by the exceptional performance of its medical and life insurance portfolios. Notably, the company's general insurance portfolio, which was divested following the sale to Allianz, no longer contributes to Jubilee's profitability metrics. Despite this, Jubilee's overall insurance sector flourished, underscoring the resilience and strength of its diversified offerings. Furthermore, the sale of two-thirds of the Kenyan general insurance business provided a significant boost to Jubilee's profits, adding a substantial two billion to the company's bottom line. This, combined with the robust performance in other markets, resulted in a total profit of 5.2 billion for the first half of the year, marking nearly a 200% improvement from the previous year. Juma also outlined the stellar performance of Jubilee's operations across East Africa, with Uganda and Tanzania emerging as the top insurers in their respective markets. While emphasizing the immense growth potential in these regions, he highlighted the low insurance penetration rates, especially in life and medical insurance, presenting a substantial growth opportunity for Jubilee. Despite the challenges posed by the COVID-19 pandemic, Juma clarified that the demand for life insurance did not surge during the crisis. Instead, Jubilee focused on retaining policyholders by offering alternatives like policy loans to mitigate premium payment difficulties. Looking ahead, the company aims to make insurance more accessible and affordable to a broader demographic, particularly in the lower-income segments. Juma acknowledged the traditional perception of insurance as a luxury and emphasized the need to educate consumers on the essential role of insurance during crises. Jubilee's resilience and prudent diversification strategies have enabled the company to maintain its dividend payouts and financial stability even in the face of economic uncertainties. With a robust portfolio and sound investments, Jubilee continues to deliver value to its shareholders. However, the limited liquidity of Jubilee's shares on the Nairobi Securities Exchange remains a challenge, leading to subdued investor interest. To address this, the company is considering share buybacks and exploring avenues to enhance market appeal and liquidity. Looking beyond the borders of East Africa, Juma disclosed Jubilee's interest in expanding into Ethiopia, pending regulatory approvals. The company's appetite for growth remains strong, with plans to venture into new territories once the regulatory landscape allows. Jubilee's strategic vision and commitment to innovation position it as a formidable player in the insurance sector, poised for sustainable growth and expansion across the African continent.