Jubilee Holdings has raised its dividend pay-out by 55.5 per cent to Sh1 billion or Sh14 per share for the year ended December after posting strong earnings growth.
The company recorded a 67 per cent growth in net profit to Sh6.8 billion in the year ended December which was helped by investment income and higher net premiums.
The company declared a final dividend of Sh8 per share and a special pay-out of Sh5 per share to reward shareholders after signing an agreement to sell majority stakes in its general insurance subsidiaries to Allianz SE.
“Both the 2021 final dividend and special dividend will be paid on or about July 25, 2022 to members on the register of members at the close of business on June 22, 2022,” said Jubilee Holdings Chairman Nizar Juma.
The company had already paid an interim dividend of Sh1 per share. The special pay-out raises the dividend to a total of Sh14 per share, up from the Sh9 paid for the previous year.
The firm attributed the increase in profits on the on the sale of controlling interests in the general businesses in Kenya and Uganda, transactions that were completed last year that have seen Jubilee retain a 34 per cent interest in both companies.
Despite not having its General Insurance business Jubilee’s total gross written premiums and deposit administration contributions recorded a modest increase of Sh825 million up to Sh38.8 billion buoyed by a growth of Sh1.4 billion in the Health Insurance Business.
However, Juma maintained that Sh1.2 billion growth in the Life Insurance Business made up for the impact of the partial loss of the General Insurance Business.
“The results cement Jubilee as the most stable and reliable insurer in East Africa. Consistent profits have given us the financial strength to build reserves to pay claims as well as give value to our shareholders in dividends,” Juma said.
In the period under review total comprehensive income after tax grew to Sh7.4 billion from Sh5.8 billion in 2020.
The group said easing of Covid-19 restrictions led to an increase in claims but the insurers tight expense control measures improved return on investment.
