Jubilee Holdings has announced a profit before tax of 2.4 billion shillings for the half-year ended June 30th, 2020 despite the challenges in the insurance sector occasioned by the Covid-19 pandemic.
The Group recorded a Profit Before Tax of 2.4 billion shillings an increase of 4.8 percent from 2019, while total assets increased by 8.0 percent to 140.1 billion shillings from 130.1 billion shillings.
During the same period, Total Comprehensive Income increased by 5.1 percent to 1.8 billion shillings from 1.7 billion shillings for the same period in 2019, and Profit After Tax remains unchanged at 1.8 billion shillings.
“The first half of the year was characterized by significant macroeconomic and financial impacts resulting from the COVID-19 pandemic. It is, however, gratifying to note that despite the unprecedented circumstances, the Group’s half-year results demonstrate a resilient operating performance and confirms the Group’s conservative and prudent approach to both the insurance and investment components of our business” Jubilee Holdings Limited Group Chairman Mr. Nizar Juma said.
The lowering of the yield curve across the region had the dual negative impact of generating lower investment returns from the fixed income portfolio and necessitating an increase in the long-term insurance contract liabilities.
Overall investment income increased by 3.8 percent to 4.98 billion shillings as a result of the Group’s growing portfolio of investment assets. The Group has also initiated efficiency measures across all companies to control expenses, which resulted in savings against budget at the half-year and identified opportunities to reduce costs further as efforts are made to navigate the challenges arising from the uncertainty created by the Covid outbreak.
The Life Business continued to show good performance accounting for 37% of the Group’s Gross Written Premiums while contributing 22 percent towards the profit mix.
Group Life performed better than 2019, contributed to by portfolio management, and the onboarding of new clients. Individual Life performed better than last year through the bancassurance platform and increased the use of digital channels, which enabled Jubilee to continue to serve customers even as lockdowns constrained movement.
The Life Business responded quickly to Covid by putting in place measures to protect its policyholders and introduced a raft of waivers, including; three months premium holiday, reimbursement of medical for a child tested positive for COVID-19 and an advance cash payment of 10 percent of the customer’s sum assured if they test positive.
The Health Business recorded a 7 percent growth in premiums to contribute 35 percent of the Group’s Gross Written Premiums while contributing 28 percent towards the performance. The improvements are a result of growth in new business coupled with strong client retention and improved claims performance.
The General Business recorded 28 percent of the Group’s Gross Written Premiums while contributing 36% towards the profit mix due to a significant improvement in underwriting results in comparison to the same period in 2019 which saw an improvement in the combined ratio. These improvements have been achieved by a rigorous review of loss-making accounts, faster settlement of claims in motor insurance, retention of a profitable business book, and process re-engineering across the board.