Inside Politics

Jubilee announces Sh652m dividend for stakeholders

Friday, July 24th, 2020 00:00 |
Jubilee Insurance. Photo/Courtesy

Jubilee Holdings Ltd (JHL) has announced a total dividend of Sh652.3 million of Sh9 per share for the financial year ended December 2019.

The final dividend payout of Sh579.8 million of Sh8 per share will be released today, on the back of Covid-19 shocks, giving shareholders much needed economic relief.

“We are proud that Jubilee Holdings has demonstrated its solid financial ground and stood by its shareholders, and not lowered the dividend payout, despite the current difficulties caused by the Covid-19 pandemic,” said Group Chairman Nizar Juma.

In its 2019 annual report and financial statement, the insurer’s earnings per share dropped by 5 per cent to Sh49.07 from Sh51.83 in 2018 in what the company described was a slow down in economic activity, higher insurance claims and underwriting costs.

The company recently announced the purchase of a further 9.44 per cent interest in Bujagali Energy Ltd (BEL) valued at $45 million (Sh4.8 billion) from the technical partners, SN Power, as part of the group’s efforts to continue to diversify into investments that are hedged in US dollars, to protect capital and provide better yield and a high return.

BEL owns and operates Bujagali hydropower plant, a 255 MW run-of-river hydropower plant located on the Victoria Nile in Uganda, commissioned in 2012. The power Project is the largest power generation facility in Uganda.

Annual general meeting (AGM) of the company has been rescheduled to a later date after obtaining approval from the Business Registration Services, owing to health risks posed by the Covid-19 pandemic.

“The approval granted on June 8, allows the us to hold the AGM within six months of the due date or three months of the lifting of the Government ban on public gatherings, whichever happens earlier,” said Juma.

Recovery plan

As part of its business recovery plan during this period, Jubilee Holdings has enhanced its distribution channels with the recent roll out of its fully digitised online platforms to allow its customers to continue to purchase or renew their motor, medical and travel insurance products conveniently and with policies delivered electronically.

During the 2019 financial year, JHC’s profit before tax reduced by 6 per cent to Sh5.01 billion in from Sh5.34 billion, while total assets grew 14 per cent to Sh130.08 billion from Sh114.19 posted in 2018 on the back of increased funds generated by growth in long-term funds.

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