Jubilee Insurance 2010 Annual Report

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8 JUBILEE HOLDINGS ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 ST DECEMBER 2010 Chairman’s Statement (continued) Corporate Social Responsibility Giving back to the communities that it operates in is a crucial part of Jubilee’s operations, and so Jubilee continued to commit resources to key CSR projects that contribute to the wellbeing of local communities, through partnerships with like-minded corporate organizations, as well as implementing its trademark CSR projects. In 2010, Jubilee revived the Jubilee Insurance Samaritan Award (JISA) and the program is making quarterly awards recognizing ordinary members of society who perform extraordinary acts of kindness. In addition Jubilee continued its partnership in key impacting projects that include the Standard Chartered Marathon and Mater Heart run, which target health-related afflictions of cardiac illness and blindness. Board of Directors The Directors who held office in 2010 are listed on page 9 of this Report. There were no changes to the composition of your Board of Directors in the year under review. The Board continues to reflect your Company’s regional outlook, while drawing from the key experience and skills that continue to steer your Company to greater heights in achieving its strategic objectives. Outlook The business and regulatory environment will remain challenging in 2011 and accurate forecasts of market trends remain difficult. However, the increases in global fuel prices portend an erosion of the purchasing power of East African citizens. Jubilee’s diversified business model proved robust in 2010 and our insurance companies will continue to focus on risk selection and management, so as to balance our entrepreneurial approach to business opportunities whilst protecting profitability. New business systems have already been launched to ensure that the Group delivers enhanced customer service to improve our customer experience reputation and maintain our position as the leading multi-line insurance brand in East Africa. It is this quality and financial stability that will continue to strengthen our customer relationships and grow business. Your Company now provides insurance protection to more than 300,000 clients across East Africa, and will continue to increase our reach for the convenience of existing and potential customers in the region. I am proud to advise that on 3 rd August, 2011 Jubilee will commence it’s 75 th Year and accordingly various initiatives have been planned which will benefit all the stakeholders including customers, intermediaries and employees. We continue to have ambitious goals and we do not rest on our laurels based on what we have achieved up to now. Jubilee will continue to perform strongly in 2011 and generate sustainable and stable returns for our shareholders. Appreciation Jubilee’s continued strong performance is a result of the support and the partnerships that we receive from our various stakeholders: our business partners, intermediaries and customers. I thank you for your continued loyal support, which has been instrumental in reinforcing Jubilee’s position as the unbeatable market leader in East Africa. I also thank all our staff across the regions who continue to show dedication and provide superior service to our customers. I would also like to acknowledge with appreciation my colleagues in the Board and those on the Boards of the subsidiaries for their diligence, guidance and support. Nizar N Juma Chairman 1st April 2011 JUBILEE HOLDINGS
JUBILEE HOLDINGS ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 ST DECEMBER 2010 9 Report of the Directors The Directors submit their report together with the audited consolidated financial statements for the year ended 31st December, 2010 which disclose the state of affairs of Jubilee Holdings Limited (the “Company”) and its subsidiary companies (together the “Group”). Country of Incorporation The Company is incorporated in the Republic of Kenya under the Companies Act and is domiciled in Kenya. The Company is also registered as a foreign company in the Republic of Uganda and in the United Republic of Tanzania. Principal activities The Company is an investments holding company. The Company, through its subsidiaries The Jubilee Insurance Company of Kenya Limited, The Jubilee Insurance Company of Uganda Limited, The Jubilee Insurance Company of Tanzania Limited, and The Jubilee Insurance Company Burundi (SA), transacts all classes of general and long term insurance business as defined by the Kenyan Insurance Act while Jubilee Insurance (Mauritius) Limited transacts all classes of general insurance business. The Group does not engage in industrial life insurance. It also owns investment companies in Uganda, Burundi and Tanzania and a fund management company in Kenya (Jubilee Financial Services Limited). Results The following is the summary of the results for the year ended 31st December, 2010: 2010 2009 Profit analysis Shs’000 Shs’000 Group profit before income tax 2,053,287 1,115,776 Income tax expense 214,163 202,103 Group profit after income tax 1,839,124 913,673 Non controlling interest 83,363 88,691 Profit attributable to equityholders of the company 1,755,761 824,982 Dividend An interim dividend of Shs 1.00 per share amounting to Shs 49.5 million (2009: 45 million) was paid on 8th October, 2010. The Directors recommend a final dividend of Shs. 4.50 per share amounting to Shs.225.75 million (2009: Shs. 157.5 million) for approval by Shareholders. The total dividend for the year represents 110% of the issued share capital as at 31st December, 2010 (2009: 90%). Directors The directors who held office during the year under review and up to the date of this report were: Nizar N Juma (Chairman) Sultan A Allana * Ramadhani K Dau ** Juma Kisaame*** Lutaf R Kassam Sultan K Khimji John J Metcalf **** Tom D Owuor * Pakistani ** Tanzanian ***Ugandan **** British Auditor In line with the principles of sound corporate governance on rotation of auditors, the Directors are recommending for approval by the shareholders that KPMG East Africa Limited be appointed Auditors of the Company in place of the retiring Auditors Messrs. PricewaterhouseCoopers, and hold office until the conclusion of the next Annual General Meeting in accordance with Section 160(1) of the Companies Act. Statement of Directors Responsibilities The Companies Act requires the Directors to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the Company and the Group as at the end of the financial year and of the profit and loss of the Group for the year. It also requires the Directors to ensure that the Company keeps proper accounting records that disclose, with reasonable accuracy, the financial position of the Company. They are also responsible for safeguarding the assets of the Group. The Directors accept responsibility for the annual financial statements, which have been prepared using appropriate accounting policies supported by reasonable estimates, in conformity with International Financial Reporting Standards and the requirements of the Kenyan Companies Act. The Directors are of the opinion that the financial statements give a true and fair view of the state of the financial affairs of the Company and the Group and of its profit or loss in accordance with International Financial Reporting Standards. The Directors further accept responsibility for the maintenance of accounting records that may be relied upon in the preparation of financial statements, as well as designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement. Nothing has come to the attention of the Directors to indicate that the Company and its subsidiaries will not remain a going concern for at least twelve months from the date of this statement. Nizar N. Juma Sultan K. Khimji Chairman Director 1st April, 2011 1st April, 2011 On behalf of the Board Nizar N Juma, Chairman Nairobi, 1st April, 2011 JUBILEE HOLDINGS
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Additional group information KENYA
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