Jubilee eyes buy-outs to increase market share

Jubilee Holdings Ltd is seeking to expand its business through buying out other insurance companies as competition in the sector hots up.

Jubilee Group chairman Nizar Juma said the interest foreign companies have shown in the sector had led to five mergers in the last one year that required firms to reorient their businesses.

The insurer last year registered a 24 per cent increase in its after-tax profits to Sh3.1 billion. Gross revenue rose by 37 per cent to Sh24.8 billion.

“For a number of years, we have been the number one insurer in East Africa, leading the markets in Kenya, Uganda and Tanzania as well as holding the top position in short-term and medical insurance; We are now delighted to also be the number one long-term insurer in Kenya for the first time. We are also pleased to be able to announce that for the first time, our turnover figures have topped Sh30 billion” Mr Juma said yesterday.

He attributed this to the insurer’s business strategy, which is designed around innovation and technology. The company has also introduced new products.
He said the value of its share price had increased from Sh310 to Sh555 in the 12-month period, with earnings per share going up by 26 per cent.

REMAIN NUMBER ONE

“The aim is to remain number one, particularly in Kenya, where mergers and acquisitions have been happening. There (have been) about five mergers in the last one year but we managed to remain number one. We are looking for companies to acquire in the country and region because insurance is dynamic,” he said.

Jubilee Holdings Limited released it’s 2014 financial figures yesterday, which reflected a 30 per cent growth in turnover. The regional insurance group achieved a turnover of Sh30.3 billion.
The company’s top-line growth benefitted from an increase in insurance results as short-term underwriting profits grew by 37.8 per cent to Sh1.2 billion in 2014.