Jubilee Holdings Declares a Record Kes 1,036 Billion Dividend
Wednesday, 29th May 2024…. Jubilee Holdings Limited (JHL) declared a dividend record of KES 14.3 per share and a payout ratio of 24% achieving a total payout of KES 1,036 billion. This confirms its strong commitment to deliver value and returns to its shareholders.
The total dividend per share of KES 14.3 includes an ordinary dividend of KES 12 (from KES 9 in 2022) and an extraordinary dividend of KES 2.3 (from the remaining gain of the General Insurance’s sale to Allianz).
Insurance Revenue grew by 8% (13% excluding the General Insurance deconsolidation) to KES 22.8 billion driven by the growth in the health companies. The health insurance sector, spearheaded by Health Kenya, was a key driver of the revenue growth. The segment’s focus on innovation and customer-centric solutions resonated well with the market leading to the re-instatement of Jubilee Health Insurance as the number one health insurer in the region.
Profit Before Tax (excluding Allianz Gain) grew by 15% to KES 5 billion, driven by a significant growth in Life insurance earnings and strong investment income performance. Total Assets grew by 14% from KES 169 billion to KES 192 billion.
Insurance Expenses increased due to the strategic investment in technology, people, and marketing. Additionally, medical inflation and a highly competitive market led to a high claims experience in our health companies during the year. Net Investment Results increased by 55% boosted by favourable macroeconomic factors that resulted in growth of the company’s interest incomes.
JHL’s strategic investments in technology, marketing and talent development was partly offset by a strong focus on cost cutting, resulting to KES 380 million in savings.
While commenting about the digital transformation agenda, JHL Chairman Nizar Juma said, “Our strategic investment in technology is already bearing fruit. In under 20 months since its implementation, technology is undeniably a game changer for our business. We will continue to maximize on tech to ensure the delivery of maximum value to all our stakeholders.”
“As a result of the successful implementation of Changamk@ 1.0, we have significantly improved our business efficiency, achieving a remarkable 40% increase in back-office productivity. Additionally, our customer experience has seen a substantial enhancement, evidenced by 36% rise in our Net Promoter Score (NPS)” emphasized Juan Cazcarra, JHL Group Chief Operating Officer.
Jubilee Insurance has launched a best-in-class Customer Relationship Management (CRM) platform designed to transform customer experience, sales, and marketing. This advanced platform will benefit the 1.4 million covered lives, further solidify customer loyalty and reinforce JHL’s leadership position in the industry. By enhancing customer interactions and streamlining operations, the company is poised to deepen customer relationships and drive even greater success.
Investment in marketing achieved positive recognition, resulting in 31% growth in brand value with the Group emerging as one of the top ten strongest brands in Kenya. This positive brand recognition is further evidenced by the numerous awards received during the year.
JHL remains committed to Environmental, Social and Governance (ESG) principles. The company has continued to invest in activities that enhance the quality of life for communities. One of the initiatives of JHL’s ESG strategy is Jubilee Children’s Fund, dedicated to promoting health and education access for children from underprivileged backgrounds.
Through JCF’s education scholarship arm, 85 students received full secondary school scholarships, bringing the total number of sponsored children to 211. The first cohort of 9 JCF-sponsored students completed their Kenya Certificate of Secondary Education (KCSE) in 2023, showcasing a commendable 100% completion rate.
The company has also collaborated with Optica and Jaipur foot to enable children access optometric care and prosthetic limbs. Through these initiatives, 10 children amputees were fitted with prosthetic limbs while 378 children accessed free essential eye care services.
In line with the Group’s commitment to proactively safeguard our people and the environment, Jubilee has set an ambitious target to be carbon neutral by 2030. To support the attainment of this ambition, the company 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, adoption of paperless operations and the exploration of innovative solutions to reduce environmental degradation.
While commenting about the company’s corporate social responsibility efforts, JHL Group CEO Dr. Julius Kipng’etich said, “As proud citizens of East Africa, our heritage fuels our unwavering commitment to advancing societal good across the region. We are dedicated to deploying our resources to uplift the communities we serve; address pressing needs and foster sustainable development for a brighter future.”
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