Jubilee Holdings Ltd — Mon, February 08 2010 myStocks!

29-Aug-08: Interim Dividend: 1.00/= • Payment: 9-Oct-08

29-Aug-08: Interim Final Dividend: 1.00/= • Payment: 9-Oct-08

Jubilee Holdings Limited is a Kenya-based company. The Company, through its subsidiaries, underwrites life and non-life insurance risk, such as those associated with death, disability, health, property and liability. The Company also issues a portfolio of investment contracts to provide its customers with asset management solutions for their savings and retirement needs. The Company has operations in Kenya, Uganda, Tanzania, India and Mauritius. The Company operates in two divisions: short-term (non-life) business and long-term (life) business. The Company’s subsidiaries include The Jubilee Insurance Company of Kenya Limited, The Jubilee Insurance Company of Uganda Limited, The Jubilee Insurance Company of Tanzania Limited, The Jubilee Investments Company Limited, Jubilee Financial Services Limited, Jubilee Insurance (Mauritius) Limited and Thillai Software Private Limited.

Jubilee Insurance House Wabera Street P.O. Box 30376 Nairobi, Kenya +25432081000 (Phone)
+25432081150 (Fax)

Company website:
http://www.jubileeinsurance.com/

Updated: Sun, September 21, 2008

Business Performance

Jubilee insurance company's is one of the major insurance underwriters in the East African region. The firms consolidated gross earned premiums grew by 30.6% in 2005 to KES 3.00 Billion. This growth is largely attributable to growth in motor vehicle and medical underwriting. On the other hand, the growth registered in motor vehicle underwriting may pose a challenge to the firm's profitability as claims from this business class have a higher tendency to rise. With regard to gross premiums earned short-term/general business insurance constituted 79% of premiums written while long-term business/life insurance accounted for 21% of the total. On the other hand, the claims ratio (claims to premiums earned) deteriorated marginally from 87% in 2004 to 89% in 2005. As a result of the high claims ratio, the combined ratios have remained stable but high, in 2004 and 2005, at 126%. This is indicative that the firm's outgo is in excess of incoming revenue hence it must increasingly rely on investment income growth for to sustain profitability. In this context, investment income improved considerably in 2005 to KES 999.00 Million compared to KES 558.00 Million in 2004.

The main challenges faced by the firm are those of growing both premiums and investment income while keeping its claims down and operating expenses at a minimum. In reference to premium growth the firm is undertaking a strategy of increasing the net rate of return to pension funds to 10.5%; this is with a view to boosting premiums from the long-term business in particular and overall performance in general. In this connection, premiums rose by 14% to KES 1.90 Billion subsequently generating a 38% increasing in earnings to KES 4.58 per share in the first half of 2006.

Future Prospects

Given the positive regional economic outlook the firm should be able to expand both its premium base and its investment income in the medium-term while containing its operating costs.