JUBILEE HOLDINGS LTD — FULL INVESTOR ANALYSIS

Kenya’s Largest Insurance & Asset Management Group

Share Price (est. NSE Range 2024–2025): ~KSh 180–325

Total 2024 Dividend: KSh 13.50 per share (Interim 2.00 + Final 11.50)

Dividend Yield: Approx. 4 –7% at depending on price.

Jubilee Holdings Ltd (JHL) remains one of East Africa’s most financially solid, diversified, and consistently profitable insurers. Operating across Kenya, Uganda, Tanzania & Burundi, JHL now serves 1.35 million+ lives and manages KSh 200B+ invested across government bonds, T-bills, equities, alternatives, and property.

The company has zero reliance on debt, extremely strong solvency, and a clean years history of never cutting dividends — making it one of the most defensive and resilient counters on the NSE.

1. WHAT JUBILEE DOES (Business Model & Revenue Drivers)

Jubilee operates a three-pillar business model, each contributing differently to revenue, profit stability, and long-term growth:

A. Health Insurance (Largest in East Africa)

Market Position

No.1 in Kenya and Uganda

No.2 in Tanzania

Main Products

Corporate medical schemes, SME health packages, individual & family health covers, NHIF–aligned solutions, micro-health, wellness & telemedicine programs.

Revenue Dynamics

Recurring annual premiums from corporates, government institutions, NGOs, SMEs and individuals. With medical inflation at ~9–12% annually, corporate renewals at higher premiums are a key revenue uplift for JHL.

B. Life Insurance & Pensions

Market Position

#2 in Kenya; expanding in Tanzania & Uganda

Products

Education savings, income protection, endowments, investment-linked plans, group life, annuities, pension solutions.

Revenue Drivers

Long-term premiums and investment returns from policyholder funds — annuities deliver long-term cashflow visibility for 10–20+ years.

C. Asset Management

Assets Under Management

KSh 172B (Institutional) & KSh 8.9B (Retail CIS)

Revenue Drivers

Management & advisory fees, performance earnings and gains on invested funds — supported by high interest government bonds and institutional mandates.

How Jubilee Generates Revenue

Core premium income (Life, Health, General), investment income (bonds, T-bills, equities, property), asset management fees, reinsurance income & profit sharing, and strategic partnership gains (e.g., Allianz).

H1 2025 BUSINESS MODEL

Insurance revenue grew +33% (KSh 16.7B vs 12.6B) — strong top-line momentum from corporate renewals, annuities and single-premium life policies.
Health dominance continues; premiums rose across regions due to medical inflation.
Life & Pensions saw strong inflows driven by single-premium products and annuities.
Investment income remains the main profit engine — high bond yields (14–17%) boost returns.

📌 Conclusion: Jubilee’s business model is expanding fast and consistently across all pillars.

2. INCOME STATEMENT ANALYSIS (2024 FULL YEAR)

Insurance Revenue

KSh 25.7B (2024) vs 22.6B (2023) → +14%

Profit Before Tax (PBT)

2024 PBT: KSh 6.22B vs 2.78B → +124% (driven by IFRS 17 valuation shift, large investment returns, improved Life profitability)

Net Profit After Tax

KSh 4.72B vs 2.59B → +82% — evidence of earnings resilience.

EPS

KSh 65 vs 36 → +80% — repositions JHL among top EPS performers on the NSE.

Why Profits Improved

Large investment portfolio (188B+)
Balanced Life & Health contributions
Stable claims ratios
Valuation gains on assets
Annuitization growth with excellent margins

📌 Conclusion: High profitability from diversified engines — not a single dependency.

⭐ H1 2025 INCOME STATEMENT UPDATE

Insurance Revenue: 16.7B vs 12.6B → +33% (strongest H1 growth in 5+ years).
PBT: 3.40B vs 2.95B → +15% (investment gains + premium growth).
Net Profit: 3.06B vs 2.51B → +22%.
EPS: 41.63 vs 34.59 → +20% (suggests FY 2025 EPS may reach 75–80).

📌 H1 2025 shows strong upward momentum.

3. BALANCE SHEET ANALYSIS (2024)

Total Assets

KSh 213.6B — largest in East African insurance.

Investment Assets

KSh 188.6B — backbone of Jubilee’s profitability (government bonds, T-bills, equities, real estate & alternatives).

Equity / Shareholders’ Funds

KSh 51.18B — extremely strong capitalization.

Liabilities

KSh 153B insurance contract liabilities — normal for a life-heavy insurer.

Financial Strength

High solvency ratios
Zero meaningful debt
Strong liquidity & capital adequacy

📌 Conclusion: One of the strongest insurance balance sheets in Africa.

⭐ H1 2025 BALANCE SHEET UPDATE (DETAILED)

Total Assets: KSh 228.4B (+15B in six months).
Investment Assets: KSh 206.7B (up from 188.6B) — heavy deployment into long-term bonds.
Equity: KSh 53.85B — retained earnings strengthening capital further.

📌 H1 2025 shows accelerated asset accumulation.

4. CASHFLOW ANALYSIS (2024)

Operating + Investing Cashflow

Net inflow: KSh 1.68B

Cash & Cash Equivalents

KSh 5.34B (Dec 2024)

Cashflow drivers: strong premium collections, high investment returns, positive Life & annuity flows.

⭐ H1 2025 CASHFLOW

Cash & Cash Equivalents: KSh 4.13B (Jun 2025) — decline due to large bond purchases, elevated claims payments and growth in premium receivables. Liquidity remains solid; decline is strategic investment expansion, not distress.

5. DIVIDEND ANALYSIS

2024 Dividend: KSh 13.50/share (KSh 2.00 interim + KSh 11.50 final)

Dividend Pattern: Never cut dividend; +50% dividend growth in years; one of the highest-paying blue-chips in Kenya.

Dividend Yield: ~4%-6.7%

⭐ H1 2025 DIVIDEND

Interim Dividend (2025): KSh 2.00 — reflects confidence in earnings, strong capital position and management commitment to income investors.

6. SHARE PRICE CHARACTERISTICS

Trading Range: KSh 180–500 over years — low volatility versus peers.

Market Profile: Attracts long-term pension funds; low speculative activity; fairly valued or undervalued based on EPS 65–75 range.

Drivers of Stability

Robust fundamentals
Large investment income base
Strong brand loyalty
Low free float (few shares available)

📌 Ideal for income, defensive, and value investors.

7. RISKS

Medical Inflation: High medical costs pressure margins.
IFRS 17 Volatility: Profit may fluctuate due to discount rate changes & asset valuations (non-cash but affects reported numbers).
Currency Risk: FX exposure across Uganda, Tanzania, Burundi.
Investment Risk: Market volatility affects valuation & OCI.

⭐ H1 2025 RISK UPDATE: FX pressure increased slightly; OCI likely negative due to interest rate cycles; claims inflation remains elevated — monitor quarterly.

📌 None of these threaten survival or dividend continuation.

8. INVESTOR RECOMMENDATION (BUY / HOLD / SELL)

🔵 Long-Term Investors → STRONG BUY
🟢 Dividend Investors → STRONG BUY
🟡 Value Investors → BUY
🟠 Growth Investors → BUY
🟤 Short-Term Traders → HOLD
🔴 Speculators / Day Traders → AVOID

9. WHAT EACH INVESTOR TYPE SHOULD WATCH

Long-Term: Solvency ratio trends, investment asset growth, regional premium expansion.
Dividend Investors: Free cashflow, medical loss ratio, dividend payout consistency.
Value Investors: P/E discount vs regional peers, embedded value (Life business).
Short-Term Traders: Quarterly results, interest rate movements.

H1 2025 Notes: Premium receivables increasing — monitor interest rate cycles and quarterly claims inflation.