Ju­bilee Hold­ings six-month net profit rises 19pc

Earn­ings in­crease to Sh1.88bn from Sh1.58bn

Business Daily (Kenya) - - CORPORATE NEWS -

Con­stant Munda

In­sur­ance group Ju­bilee Hold­ings’ net profit for six months end­ing June 30 rose 18.99 per cent largely helped by im­proved per­for­mance of the Nairobi bourse that helped to dampen a sharp jump in claims pay­ments.

The listed firm’s net earn­ings in the pe­riod climbed to Sh1.88 bil­lion from Sh1.58 bil­lion as gains from in­vest­ments at the Nairobi Se­cu­ri­ties Ex­change, large­ly­compris­ing gov­ern­ment se­cu­ri­ties, in­creased fourand-a-half times.

Net value gain from in­vest­ments in gov­ern­ment pa­per and eq­ui­ties stood at Sh1.3 bil­lion from a loss of Sh364.91 mil­lion a year ear­lier, a growth of 455.6 per cent. To­tal in­come in­creased by 30.16 per cent to Sh14.89 bil­lion, Ju­bilee re­ported, at­tribut­ing it to a 13 per cent growth by the NSE after a two-year bear run.

“These im­pres­sive re­sults were re­alised in an un­pre­dictable busi­ness en­vi­ron­ment, cur­rency volatil­ity both in the re­gional

To­tal in­come in­creased by 30.16 per cent to Sh14.89 bil­lion NIZAR JUMA

and global mar­ket, as well as reg­u­la­tory changes,” Ju­bilee Hold­ings chair­man Nizar Juma said in a state­ment.

Ju­bilee booked gross pre­mi­ums of Sh18.6 bil­lion, 8.2 per cent bet­ter than pre­vi­ous year, help­ing to boost net pre­mi­ums in­come by 21.89 per cent to Sh10.19 bil­lion.

Net claim­sex­panded by Sh2.9 bil­lion, or 38.69 per cent, to Sh10.38 bil­lion. “Fraud de­tec­tion con­tin­ues to draw ad­di­tional fo­cus of our man­age­ment in our gen­eral in­sur­ance busi­ness line .... we con­tinue to in­vest in sys­tems and mech­a­nisms that fa­cil­i­tate fraud preven­tion, de­tec­tion and ef­fec­tive ac­tion when it hap­pens,” Mr Juma said.

The direc­tors have rec­om­mended an in­terim div­i­dend pay­ment of Sh1 per share, same as last year’s.

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