Jubilee Holdings posted a 22 percent rise in net profit for the first half of 2025, supported by strong insurance revenue growth and higher investment income.
Group head of finance Paul Mungai is keen to sustain momentum in insurance revenues while managing risks around claims volatility, inflation and capital markets.
Despite a 22 percent rise in net profit, the interim dividend remained at Ksh 2.00 per share. What informed this conservative payout, and how are you balancing shareholder expectations with the group’s reinvestment and growth plans?
Jubilee Holdings has built a strong track record as the most consistent dividend-paying insurance company in the region. Our dividend policy provides for two distributions annually – an interim dividend in November and a final dividend in July. The interim dividend of Ksh 2.00 per share for this year has been maintained at the same level as last year’s. This consistency reflects our commitment to providing steady returns to shareholders, while also retaining sufficient capital to support reinvestment, regulatory requirements and the group’s long-term growth plans. The final dividend in July will provide an opportunity to reflect the full year’s performance and outlook.
Net insurance finance results jumped by 76 percent to Ksh 1.6 billion. What drove this performance and how confident are you in its sustainability?
The 76 percent growth in net insurance finance results was primarily driven by strong investment income, reflecting our proactive and disciplined approach to asset management in a dynamic market environment. These results have significantly supported profit before tax. While market movements can influence short-term outcomes, we remain confident that our diversified investment strategy, prudent risk management and focus on high-quality assets will continue to provide resilience and sustainable contribution to the group’s performance
Insurance service revenue rose 33 percent, but the service result improved by only 15 percent. What explains the divergence and what steps are being taken to manage claims costs or operational efficiency going forward?
Insurance service revenue grew strongly by 33 percent, driven by our leadership position in health insurance and encouraging progress in the life business. The service result, which increased by 15 percent, reflects not only claims experience but also our deliberate investments in technology, digital solutions, marketing and ESG initiatives. These are strategic expenditures designed to strengthen operational efficiency, enhance customer experience and secure long-term profitable growth. Delivering a double-digit improvement in service result alongside these investments demonstrates a healthy and sustainable position.
Operating cash flow stood at Ksh 3.2 billion, but cash and equivalents fell to Ksh 4.1 billion due to Ksh 5 billion in investing outflows. Please shed light on the nature of these investments, and whether they could constrain dividend capacity or agility in the short term?
Operating cash flow of Ksh 3.2 billion reflects strong underlying business performance. The reduction in cash and equivalents is largely due to the strategic investing outflows. These investments are carefully targeted to generate attractive long-term returns, and our proactive approach to cash and asset management ensures that funds are deployed efficiently. Importantly, these investing activities are not expected to constrain our dividend capacity or limit the group’s financial agility in the short term
Holdings in government securities grew to Ksh 162.8 billion, alongside higher exposure to quoted equities. How are you approaching asset allocation in the current environment and what trade-offs are you making between yield, risk, and liquidity?
Our asset allocation strategy balances yield or return, risk and liquidity to ensure we optimise long-term returns while safeguarding capital. Growth in government securities reflects our focus on stable, low-risk instruments, providing predictable income and strong liquidity. At the same time, selective exposure to quoted equities allows us to capture higher growth opportunities in the market. Each investment decision is guided by rigorous risk assessment, ensuring that we maintain a diversified portfolio that supports both our financial performance and regulatory obligations
Looking ahead to the second half of the year, what are the key financial risks and growth levers for Jubilee Holdings? How are you preparing for potential volatility in claims, inflation, or capital markets in your outlook for H2 2025?
For the remainder of the year our focus is to sustain the growth we see on insurance revenues while managing business and financial risks around potential volatility in claims experience, inflationary pressures and fluctuations in capital markets. We will actively be managing these risks through robust underwriting discipline, continuous monitoring of claims trends and a diversified investment strategy designed to absorb market shocks. We will continue leveraging technology and digital solutions for efficiency and altogether, these measures should see us close 2025 in a strong financial position.
