CHAIRMAN’S STATEMENT (CONTINUED)<strong>Jubilee</strong> further strengthened its regional senior managementteam during 2011 to consolidate its position as the leadinginsurance franchise in Eastern Africa and provide the capacityand competence base to pursue further regional expansion.Significant investments have also been made in informationtechnology in order to support our growing portfolio, andensure service delivery is second to none. In 2011, <strong>Jubilee</strong>implemented the sophisticated ISF Life insurance system inKenya to cater for the fast growing Individual Life and GroupLife portfolio, and which will also support bancassurance andunit linked products. This is in the process of being rolled outto all countries. Towards the end of 2011, <strong>Jubilee</strong> also signeda contract to implement a modern, state of the art Medicalinsurance system, and implementation of this system has alsocommenced.The subsidiary insurance companies in Kenya, Uganda andTanzania all performed well during the year with all companiescontributing positively to the Group’s growth whilst increasingunderwriting profitability and market share. <strong>Jubilee</strong> Tanzaniaparticularly rose to market leadership position, Ugandamaintained once again its number one position, whilst Kenyaincreased its market share and significantly enlarged the gapfrom the runner by over KShs 1.2 billion. The Subsidiaries inBurundi and Mauritius also recorded good growth.In 2011, <strong>Jubilee</strong> wrote KShs 15.983 billion in premium andrealized Kshs 2.14 billion in profit before tax. To ensurecontinuity as a market leader in the region, the company plansto open 14 agency offices in Kenya and continue its expansionplans in the region. Various strategic initiatives to grow theretail, bancassurance and micro insurance business and launchof online sales have been drawn up which will see <strong>Jubilee</strong>continue to lead the market including in product innovation,distribution channels and customer service.Increased market confidence in <strong>Jubilee</strong>’s Balance Sheet strengthand financial stability as it attains 75 years, resulted in a27% growth in deposit administration inflows, indicating thecompany’s ability to safeguard funds and offer consistent returnsyear on year. The Group’s impressive end year results translateinto a 4% increase in profit attributable to shareholders, with theearning per share increasing to Kshs 33.10 from Kshs 32.25.Corporate Social ResponsibilitySupporting communities that it operates in is an importantcommitment for <strong>Jubilee</strong>, and in so doing it continues tocommit resources to key CSR initiatives that go towardssupporting crucial needs of the local communities, throughpartnerships with like-minded corporate organizations, as wellas implementing its trademark CSR projects. Among theseinclude The <strong>Jubilee</strong> <strong>Insurance</strong> Samaritan Award (JISA) which in2011 made a significant impact by awarding four remarkableindividuals for their extraordinary acts of charity, and tellingtheir stories through the media to inspire the general society.With overwhelming support of staff the <strong>Jubilee</strong> Children Fund(JCF) continues to grow in supporting health initiatives. Inaddition <strong>Jubilee</strong> continued its partnership in key impactingprojects that include the Standard Chartered Marathon andMater Heart Run, which target health-related afflictions ofcardiac illness and blindness.Board of DirectorsThe Directors who held office in 2011 are listed on <strong>page</strong> 4 and5 of this Report. There were no changes to the composition ofyour Board of Directors in the year under review. The Boardcontinues to reflect your Company’s regional outlook, whiledrawing from the key experience and skills that continue tosteer your Company to greater heights in achieving its strategicobjectives.2012 OutlookThe business and regulatory environment will remain challengingin 2012 and accurate forecasts of market trends remain difficult.However, inflation and increases in global fuel prices portendan erosion of the purchasing power of East African citizens.National elections and the establishment of a new system ofdevolved government will also make 2012 a challenging butpotentially prosperous year for Kenya and the region.<strong>Jubilee</strong>’s diversified business model proved robust in 2011, andour insurance companies will continue to focus on risk selectionand management, so as to balance our entrepreneurial approachto business opportunities whilst protecting profitability. Keystrategic initiatives for 2012 include the significant expansionof business through the bancassurance channel as well asgrowth of microinsurance business. New business systemshave already been launched to ensure that the Groupdelivers enhanced customer service to improve our customerexperience reputation and maintain our position as the leadingmulti-line insurance brand in East Africa. It is this quality andfinancial stability that will continue to strengthen our customerrelationships and grow business.<strong>Jubilee</strong>’s Africa-wide expansion resonates with our customerswho are themselves expanding business across the continent,and it will place <strong>Jubilee</strong> as an insurance company of choice, anda brand with the financial strength and muscle to deliver qualityand convenience.Your Company now provides insurance protection to morethan 300,000 clients across East Africa, and will continue toincrease our reach for the convenience of existing and potentialcustomers in the region.I am proud to advise that on 3rd August 2012 <strong>Jubilee</strong> willcelebrate its 75th anniversary and accordingly a number ofcelebratory events have been planned which will involve allthe stakeholders including customers, intermediaries andemployees.We continue to have ambitious goals and we do not rest on ourlaurels based on what we have achieved up to now. <strong>Jubilee</strong> willcontinue to perform strongly in 2012 and generate sustainableand stable returns for our shareholders.Appreciation<strong>Jubilee</strong>’s continued strong performance is a culmination ofcontributions of our various stakeholders: our business partners,intermediaries and customers. I would like to thank you for yourcontinued support and loyalty, which have been instrumental inreinforcing <strong>Jubilee</strong>’s position as the invincible market leader inEast Africa.I also thank all our staff across the region who continues to showdedication and provide superior service to our customers. Iwould also like to acknowledge with appreciation my colleaguesin the Board and those on the Boards of the subsidiaries fortheir diligence, guidance and support.Nizar N. JumaChairman29th March 20128JUBILEE HOLDINGS LIMITED<strong>Annual</strong> Report and Financial Statements 2011
REPORT OF THE DIRECTORSThe Directors submit their <strong>report</strong> together with the audited consolidated financial statements for the year ended31st December, 2011 which disclose the state of affairs of <strong>Jubilee</strong> Holdings Limited (the “Company”) and itssubsidiary companies (together the “Group”).Country of IncorporationThe 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 ofTanzania.Principal activitiesThe Company is an investments holding company. The Company, through its subsidiaries The <strong>Jubilee</strong> <strong>Insurance</strong>Company of Kenya Limited, The <strong>Jubilee</strong> <strong>Insurance</strong> Company of Uganda Limited, The <strong>Jubilee</strong> <strong>Insurance</strong> Companyof Tanzania Limited, and The <strong>Jubilee</strong> <strong>Insurance</strong> Company Burundi (S.A.), transacts all classes of general and longterm insurance business as defined by the Kenyan <strong>Insurance</strong> Act while <strong>Jubilee</strong> <strong>Insurance</strong> (Mauritius) Limitedtransacts all classes of general insurance business. The Group does not engage in industrial life insurance. It alsoowns investment companies in Uganda, Burundi and Tanzania and a fund management company in Kenya (<strong>Jubilee</strong>Financial Services Limited).ResultsThe following is the summary of the results for the year ended 31st December, 2011:2011 2010Profit analysis Kshs’000 Kshs’000Group profit before income tax 2,143,891 2,053,287Income tax expense 233,501 214,163Group profit after income tax 1,910,390 1,839,124Non-controlling interest 107,933 83,363Profit attributable to equityholders of the company 1,802,457 1,755,761DividendAn interim dividend of Kshs 1.00 per share amounting to Kshs 54.45 million (2010: Kshs 49.5 million) waspaid on 7th October, 2011. The Directors recommend a final dividend of Kshs 4.50 per share amounting toKshs 245.025 million (2010: Kshs 222.75 million) for approval by Shareholders. The total dividend for the yearrepresents 110% of the issued share capital as at 31st December, 2011 (2010: 110%).DirectorsThe directors who held office during the year under review and up to the date of this <strong>report</strong> were:Nizar N. Juma (Chairman)Sultan A. Allana *Ramadhani K. Dau **Juma Kisaame ***Lutaf R. KassamSultan K. KhimjiJohn J. Metcalf ****Tom D. Owuor* Pakistani ** Tanzanian *** Ugandan **** BritishAuditorThe Company’s independent auditor, KPMG Kenya, who was appointed during the year in place ofPricewaterhousecoopers, continues in office in accordance with Section 159(2) of the Kenyan Companies Act(Cap. 486).On behalf of the BoardNizar N. JumaChairman29th March, 2012JUBILEE HOLDINGS LIMITED<strong>Annual</strong> Report and Financial Statements 2011 9
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