Jubilee Holdings Limited (JHL) Monday got shareholders’ approval to issue a total dividend of Sh8.50 per share, for the 65 million issued shares, equating to a total of Sh 560 million in dividends payout that Jubilee Holdings will make following its sterling performance in 2016.
This follows Jubilee’s steady performance at the Nairobi Securities Exchange (NSE) in 2016 that saw the company’s share price remain above Sh 450 per share, even as the NSE 20 index fell by 21 per cent.
Shareholders, attending the 2017 Annual General Meeting (AGM), also approved a bonus issue of 1 share for every 10 shares held to create a total of 6,588,460 million shares.
This bonus share issue will especially commemorate Jubilee’s 80th anniversary, which will be marked on August 3rd, 2017. This represents a value of over Ksh 3 billion at the current market price per share of Ksh 460.
The company’s total income shot up by 14 per cent to Kes24.7 billion in 2016 compared to Kes 21.7 billion recorded in the previous financial year. This increase in revenues were boosted up by an impressive 59 per cent increase in the group’s life business, a 36 per cent increase in individual life business and a 16 per cent increase in the medical insurance business.
Speaking at the AGM, Group Chairman, Mr. Nizar Juma, said the dividend payout and bonus share issue reflected Jubilee’s continued growth and consistent financial performance over many years that are a testament to the firm’s 80-year legacy that has made it the region’s leading insurance group.
“Our share performance at the bourse in the last two years during a very bearish market, reflect the confidence investors have in our company and further proves that Jubilee’s long-term strategic plan remains on course,” he said.
Juma attributed the stock’s performance at the NSE to a good performance in its core insurance business, in addition to consistent returns from the group’s investment portfolio as a result of Jubilee’s strategy of lowering its risk exposure to volatility at the stock market in recent years.
The 2016 final dividend continues a 33-year track-record of Jubilee Holdings which, since listing in 1984, has always declared dividends and has never declared a dividend lower than the previous year!
Their strategy has included diversification into investments in the into assets in the energy sector, such as Tsavo power, Bujagali energy and SEACOM Submarine fiber optic cable that provide returns in dollar terms. This investment strategy has proven sound during a period of market volatility for the benefits of both JHL’s shareholders and pension and life clients. The Group will continue to pursue an investment strategy that is long-term in its outlook.
Jubilee’s commendable financial performance comes against the backdrop of increased innovation that has seen the firm diversify its products and services to customers. The company has invested heavily in technology in order to develop products for the expanding middle and lower income segments, so that they have opportunities to purchase insurance policies at affordable premiums through digital platforms.
This includes, among others, a Marine Cargo Insurance Online Portal that gives clients the facility to set-up accounts, make online declarations, obtain instant marine certificates, self-service their policies and report claims as they happen.
The performance coincides with Jubilee’s 80th anniversary celebrations this year and to mark this important milestone for the group, Jubilee has launched a number of initiatives that aspire to contribute to the positive transformation of society.
These include: Providing support as one of the partners behind the Blue Company project, whose sole purpose is to encourage companies fight corruption within their organizations and in their day to day dealings with others; establishment of a Jubilee Training Academy that will provide state-of-the-art learning with a well-trained team of professionals who provide individual and professional development opportunities in Insurance.
The Live Free project is a painting competition open to primary school children from ages 6 to 14 years, and has already kicked off in Kenya and Uganda in government sponsored schools.
The primary school children submitted their entries and from the final list of over 8,000 paintings on their depiction of ‘Living Free’, final entries of the best 40 painting winners will be awarded scholarships through Primary and Secondary school education.
As part of the activities to mark its 80th anniversary, Jubilee Insurance is also sponsoring several medical camps in the region with the aim of helping restore sight or hearing loss; and to assist those who have lost a limb through provision of artificial limbs.
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