Shareholders of insurance group, Jubilee Holdings, will earn Shs318.7 (Ksh11.1) per share they hold in the company following a declaration of a 110 per cent dividend on the back of impressive profits recorded in the first half of 2012.
According to the company financial results released recently, the group’s half year profit before tax for the months that ended June 31rose by 19 per cent to Shs26.6 billion (Kshs928 m) from Shs22.4 billion (Kshs781 m) in the same period in 2011.
The dividends to be paid out this year are higher than the Shs272.8 (Kshs9.5) that shareholders received in the same period the previous year.
The insurance firms’ gross revenue also increased by 33 per cent to Kshs10.6 billion from Kshs8 billion recorded in the same period last year. The group chairman, Mr Nizar Juma, said: “Our results amply demonstrate that we have the wisdom and experience of a 75 year old but the speed and agility of a 20 year old. This is how during the last eight years, Jubilee has grown tenfold.”
The firm’s revenue from short term business grew to Kshs8.059 billion from Kshs5.896 billion in 2011. This, according to Mr Juma, reflects strategies implemented to improve operating efficiency, rigorous focus on risk management, and an innovative product development drive that saw Jubilee expand its products in agricultural insurance and Small and Medium Enterprise (SMEs) insurance.
Jubilee has been a leader in the Kenyan medical insurance market for the last five years, with a 32 per cent market share in 2011. Its medical insurance business also grew by 40 per cent in Tanzania and 50 per cent in Uganda in the first half of 2012, compared to the same period in 2011.
Jubilee Insurance also declared a 1:10 bonus share issue to the shareholders.
The company’s investment income recorded a 47 per cent growth to Kshs1.442 billion in the first half of 2012.