Jubilee Life Insurance posts Sh2.1b net profit

Insurance service provider Jubilee Life Insurance has ="https://www.standardmedia.co.ke/health/amp/business/article/2001515533/jubilee-posts-record-sh6b-profit-as-gross-premiums-jump-34pc">reported Sh2.1 billion in profit< after tax for the year ended December 2024 on the back of high investment income from government securities and equity investments.

The firm’s net investment income hit Sh17 billion over the same period of time, up from Sh9.1 billion reported in 2023, with management upbeat over the insurer’s investment approach for delivering competitive returns.

“We’re encouraged by the strides we’ve made, particularly in the performance of our investment portfolio,” said Jubilee Life Insurance chief executive Asman Mugambi.

“While there has been some pressure on insurance revenue and rising service costs, we remain focused on building a strong, stable business,” he said. “Our priority is to stay connected to our customers and develop solutions that truly serve them”.

Insurance revenue fell eight per cent to Sh4.8 billion, with the firm’s insurance service expense rising to Sh4.5 billion, up from Sh4 billion in 2023 which was attributed to higher claims and enhanced operational efforts to boost service delivery.

With a 57 per cent growth in gross written premiums in Kenya and a 58 per cent growth in Tanzania, the firm is currently ranked second in the life insurance sector across the region.

The firm cited a focus on digital-first products and solutions targeted at easing financial planning for the strong performance. Data from the latest financial results indicate that the value of the insurer’s total assets rose 22 per cent, from Sh122 billion in 2023 to Sh149 billion as at December last year.

This was largely driven by investments in government securities and equity investment which rose by Sh24 billion and Sh1.6 billion respectively.

At the same time, its parent company, Jubilee Holdings Ltd, yesterday announced the merging of its Ugandan subsidiaries.

“The board of directors of Jubilee Holdings Ltd hereby notifies its shareholders and the public that it has approved the proposed amalgamation of its Ugandan Life and Health insurance subsidiaries, namely, Jubilee Health Insurance Company of Uganda Ltd and Jubilee Life Insurance Company of Uganda Ltd,” stated the company in a notice.

Upon completion of the amalgamation, Jubilee Life Insurance Company of Uganda will be the continuing entity and shall undertake both Life and Health insurance business in Uganda.

The proposed amalgamation will only affect the Ugandan subsidiaries, and the firm has assured its clients that all existing contracts will remain valid.