Jubilee Holdings shareholders have approved the payment of Sh869.6 million dividend for the year ended December comprising an ordinary payout of Sh9 per share and a special distribution of Sh3 per share.
The company had paid a total dividend of Sh1 billion for the prior year, which included the standard payout of Sh9 per share and a special one of Sh5 per share.
Shareholders on Friday approved the payout during the annual general meeting, setting the stage for the final payout of Sh8 per share and the special distribution of Sh3 per share to be remitted on July 26 to shareholders on the register as of June 14.
Jubilee had paid an interim dividend of Sh1 per share last year.
The special dividends in the two years arise from the large gains the insurer has recorded from the sale of majority stakes in its general insurance businesses to Allianz SE.
The special payouts have boosted cash returns over the normal distributions of Sh652.2 million or Sh9 per share. The company’s net income in the review period declined 3.8 percent to Sh6.5 billion on a lower gain from the transactions with Allianz.
“While the road to recovery was difficult, our company navigated uncertain market conditions while adapting to a rapidly changing landscape. We are delighted that the group’s balance sheet remains solid and resilient,” said Nizar Juma, chairman at Jubilee.
The insurer posted growth in investment income and a slight drop in premiums from insurance businesses it retained and which span life and health covers.
Jubilee’s gain from the sale of the general insurance businesses stood at Sh2.1 billion in the review period, down from Sh3.2 billion a year earlier.
The company said that excluding the impact of the transactions, its pre-tax profit in the review period stood at Sh5.6 billion and represented a four percent growth.
