Jubilee half year profit holds firm at Sh1.8bn

Jubilee Holdings #ticker:JUB half-year net profit unchanged at Sh1.8 billion, defying a trend where insurers have posted losses or drop in profits in the wake of Covid-19.

The regional underwriter said the stable performance was due to improved insurance underwriting results from all of its operations across the region as well as returns from its investment income.

Investors will pocket Sh72.47 million after the firm declared a Sh1 per share interim dividend at a time most companies have frozen the payouts to preserve cash.

Most insurers have been hit by reduced returns from real estate and falling share values at the Nairobi Securities Exchange (NSE)—where they have invested billions with an eye on capital gains and dividends.

“It is 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,” said Mr Juma.

Mr Juma said that while the overall growth in premiums stalled, the group registered lower claims volumes in the motor and health insurance, easing pressure on the bottom-line.

However, Jubilee experienced increased surrenders and withdrawals of life insurance due to Covid-19 hardships, which triggered job cuts and unpaid leaves.

Jubilee’s growing portfolio of investment assets helped investment income grow by 3.8 percent to Sh4.98 billion.

Britam Holdings #ticker:BRIT posted Sh1.63 billion net loss in contrast with Sh1.67 billion net profit in a similar period last, hits by NSE share losses.

CIC Insurance Group #ticker:CIC made a Sh335.5 million net loss in the half year ended June, reversing a net profit of Sh20.9 million the year before.

Another insurer, Sanlam Kenya #ticker:SLAM reported a Sh99.1 million after-tax loss, down from a Sh639.6 million net profit posted in 2019 half year.

The value of shares at the NSE dropped by Sh435 billion in the six months to June following widespread sell off, notably by foreign investors, in the wake of Covid-19.

This lower share valuations highlighted the stocks influence on the performance of insurance firms.