Jubilee Holdings doubles interim dividend as it adapts IFRS 17

Announcing its half-year financial results under the IFRS 17 new reporting standards, Jubilee Holdings reported a half-year Profit Before Tax (PBT) of Ksh.2.4 billion.

Following the adoption of the new IFRS 17 and excluding the sale of General Insurance business to Allianz, the Group’s net earnings went down to Ksh.2.04 billion in the first six months of 2023.

The new International Financial Reporting Standard (IFRS17) that came into effect in January replacing IFRS 4 requires a company to measure insurance contracts using updated estimates and assumptions, thus giving an actual financial position of an insurance entity.

The Nairobi Securities Exchange (NSE)-listed insurer said the dividend will be paid on or about October 11, 2023, to members who were already on the register at the close of business on September 8, 2023. 

"The Directors recommend the payment of an interim dividend of 40% or Ksh.2 per share," said JHL on Wednesday.

The Group’s Insurance Service Revenue grew 11% from Ksh.8.8 billion to Ksh.9.8.

Over the same period, the total assets grew by 12% from Ksh.161 billion to Ksh.181 billion, signalling the company’s ability to meet its obligations.

According to JHL Chairman Nizar Juma, the Group has successfully implemented the first phase of its digital transformation agenda which includes digitizing internal processes to improve business efficiency, security and agility. 

The Chairman notes that JHL has already embarked on the second phase which is geared towards delivering an end-to-end digital experience for its customers and other stakeholders. 

“The first phase of the Changamk@ project has transformed our business processes while providing a launching pad that will make insurance simpler and more accessible to a wider customer segment,” he said.

“The second phase will leverage on data driven insights, artificial intelligence and seamless digital interfaces to transform how insurance is perceived and experienced by our different audiences.”

Jubilee Holdings Group CEO Dr. Julius Kipngetich underscored that the company is committed to various Environmental, social, and governance (ESG) initiatives for sustainable growth.

“By prioritizing sustainability, ethical governance and community engagement, we are not only shaping the future of our business but also contributing to the betterment of the communities we serve,” said Dr. Kipngetich.