JUBILEE HOLDINGS LIMITED
UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Unaudited Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the six months ended 30th June 2018:
Jun-18 Jun-17 Dec-17
KShs'000 KShs'000 KShs'000
Audited
Gross earned premium 14,191,236 15,600,726 28,328,848
Outward reinsurance (5,311,719) (5,408,010) (9,134,984)
Net earned premium 8,879,517 10,192,716 19,193,864
Claims and policy holder's benefits payable (9,840,372) (10,381,180) (19,653,897)
Commission paid (1,705,678) (1,736,179) (3,400,893)
Commission earned 1,002,245 1,068,387 1,803,453
Management expenses (2,114,244) (2,076,358) (4,240,091)
Net fair value gain through profit or loss 1,425,777 1,297,633 2,700,471
Investment Income 4,303,896 3,396,164 7,575,360
Operating profit 1,951,141 1,761,183 3,978,267
Share of results of associates 470,596 578,772 1,182,702
Group profit before income tax 2,421,737 2,339,955 5,160,969
Income tax expense (562,126) (463,797) (930,660)
Net profit 1,859,611 1,876,158 4,230,309
Other Comprehensive Income
Change in fair value of financial assets at fair value through (9,913) 131,989 292,898
other comprehensive income
Net translation loss/(gain) (678,373) 170,890 (468)
Associate share of other comprehensive income - - 47,219
Deferred income tax relating to other comprehensive income 2,974 549 (87,589)
Total other comprehensive income (685,312) 303,428 252,060
Total comprehensive income 1,174,299 2,179,586 4,482,369
Non-controlling interest 91,443 201,417 309,706
Profit attributable to shareholders 1,082,856 1,978,169 4,172,663
Earnings per share (KShs)-basic and diluted 23.38 23.68 54.26
Dividends:
Dividend proposed 72,473 72,473 579,784
1
JUBILEE HOLDINGS LIMITED
UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Unaudited Consolidated Statement of Financial Position as at 30th June 2018:
Jun-18 Jun-17 Dec-17
KShs'000 KShs'000 KShs'000
Audited
CAPITAL AND RESERVES
Share capital 362,365 329,423 362,365
Fair value reserves 328,296 237,266 337,751
General reserves 70,000 70,000 70,000
Contingency reserves 1,055,785 991,904 1,050,993
Translation reserves (1,148,965) (424,822) (546,820)
Statutory Reserve 2,641,109 3,047,003 2,185,073
Retained earnings 21,130,169 17,968,598 19,512,980
Proposed dividends 72,473 72,473 579,784
Equity attributable to owners of the company 24,511,232 22,291,845 23,552,126
Non-controlling interest 1,703,970 1,677,206 1,678,524
Total equity 26,215,202 23,969,051 25,230,650
ASSETS
Intangible asset 135,055 115,682 158,341
Property and equipment 343,873 245,373 281,187
Investment properties 6,221,454 6,047,348 6,270,940
Investment in associates 9,819,501 9,843,687 9,579,327
Deferred income tax asset 192,051 238,761 191,273
Unquoted equity investments at fair value through profit or loss 3,157,632 2,772,007 3,157,632
Unquoted equity investments at fair value through other comprehensive 347,455 104,707 200,371
income
Quoted equity investments at fair value through profit or loss 7,905,556 5,950,869 6,853,603
Quoted equity investments at fair value through other comprehensive income 240,548 1,149,486 1,276,692
Mortgage loans 60,021 109,100 109,098
Loans on life insurance policies 833,267 738,374 788,958
Government securities 54,944,239 43,236,596 47,195,222
Commercial bonds 893,952 1,431,256 904,007
Receivables arising out of direct insurance arrangements 5,058,876 5,915,317 4,204,795
Receivables arising out of reinsurance arrangements 2,508,049 2,301,075 3,071,800
Reinsurers’ share of insurance contract liabilities 7,657,833 8,423,335 7,250,563
Deferred acquisition costs 216,510 479,481 147,132
Other receivables 2,435,862 1,842,592 1,080,642
Current income tax recoverable 133,242 290,787 142,478
Deposits with financial institutions 7,160,035 8,622,680 10,585,597
Cash and bank balances 2,764,611 1,249,899 1,517,872
Total assets 113,029,622 101,108,412 104,967,530
LIABILITIES
Deferred income tax liability 152,243 84,548 199,550
Insurance contract liabilities 24,962,527 23,396,742 24,983,504
Payable under deposit administration contracts 46,161,548 38,034,072 42,214,336
Unearned premium reserve 9,285,575 9,989,983 7,571,212
Creditors arising out of direct insurance arrangements 143,753 412,970 2,006,921
Creditors arising out of reinsurance arrangements 1,228,614 1,812,725 325,730
Other payables 3,844,632 2,423,877 1,995,468
Dividends payable 940,647 790,981 369,176
Current income tax payable 94,881 193,463 70,983
Total liabilities 86,814,420 77,139,361 79,736,880
Net assets 26,215,202 23,969,051 25,230,650
2
JUBILEE HOLDINGS LIMITED
UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Unaudited Consolidated Statement of Changes in Equity for the six months ended 30th June 2018:
Share Fair General Translation Contingency Statutory Retained Proposed Equity Non- Total
Capital Value Reserves Reserves Reserves Reserves Earnings Dividends Attributable Controlling Equity
Reserves to Owners Interest
KShs'000 KShs'000 KShs'000 KShs'000 KShs'000 KShs'000 KShs'000 KShs'000 KShs'000 KShs'000 KShs'000
Six months ended 30 June 2018
At start of year (01/01/2018) 362,365 337,751 70,000 (546,820) 1,050,993 2,185,073 19,512,980 579,784 23,552,126 1,678,524 25,230,650
Profit for the period - - - - - 1,694,454 - 1,694,454 165,157 1,859,611
Other comprehensive Income
Change in fair value of FVTOCI - (13,507) - - - - - - (13,507) 3,593 (9,914)
Net translation gain - - - (602,145) - - - - (602,145) (76,228) (678,373)
Deferred income tax relating OCI - 4,052 - - - - - - 4,052 (1,078) 2,974
Transfer to contingency reserves - - - - 4,792 - (4,792) - - - -
Total comprehensive income for the period - (9,455) - (602,145) 4,792 - (4,792) - (611,600) (73,713) (685,313)
Transactions with owners:
Dividends: - Final for 2017 paid - - - - - - - (579,784) (579,784) (65,998) (645,782)
Interim for 2018 proposed - - - - - - (72,473) 72,473 - - -
Total transactions with owners: - - - - - - - (507,311) (579,784) (65,998) (645,782)
Transfer from life fund - - - - - 456,036 - - 456,036 - 456,036
At end of the period 362,365 328,296 70,000 (1,148,965) 1,055,785 2,641,109 21,130,169 72,473 24,511,232 1,703,970 26,215,202
Six months ended 30 June 2017
At start of year (01/01/2017) 329,423 104,458 70,000 (554,086) 964,042 2,185,073 16,352,839 494,133 19,945,882 1,475,787 21,421,669
Profit for the period - - - - - 1,716,094 - 1,716,094 160,064 1,876,158
Other comprehensive Income
Change in fair value of FVTOCI - 132,376 - - - - - 132,376 (388) 131,988
Net translation gain - - - 129,264 - - - 129,264 41,626 170,890
Deferred income tax relating OCI - 432 - - - - - 432 117 549
Transfer to contingency reserves - - - - 27,862 (27,862) - - - -
Total comprehensive income for the period - 132,808 - 129,264 27,862 - (27,862) - 262,072 41,355 303,427
Transactions with owners:
Dividends: - Final for 2016 paid - - - - - - (494,133) (494,133) - (494,133)
Interim for 2017 proposed - - - - - (72,473) 72,473 - - -
Total transactions with owners: - - - - - (72,473) (421,660) (494,133) - (494,133)
Transfer from life fund - 861,930 861,930 861,930
At end of the period 329,423 237,266 70,000 (424,822) 991,904 3,047,003 17,968,598 72,473 22,291,845 1,677,206 23,969,051
3
JUBILEE HOLDINGS LIMITED
UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Unaudited Consolidated Statement of Cash Flows for the six months
ended 30th June 2018:
Jun-18 Jun-17 Dec-17
KShs'000 KShs'000 KShs'000
Audited
Cash flow from operating activities
Profit before income tax 2,421,737 2,339,955 5,160,970
Adjustments for: -
Depreciation 72,992 107,984 145,186
Fair value gains on equity investments at fair value through profit or loss (1,517,425) (1,280,902) (2,700,471)
Change in deposit administration contracts 2,512,293 2,907,648 6,225,984
Change in insurance contract liabilities and reserves 1,693,386 4,396,865 3,564,856
Gain on sale of OCI shares - - 1,756
Investment income (4,303,896) (3,396,164) (7,163,764)
Share of result of associates after income tax (470,596) (578,772) (1,182,702)
Operating profit before working capital changes 408,491 4,496,614 4,051,815
Change in premium, reinsurance and other receivables (2,122,199) (2,990,385) 216,477
Change in reinsurance and other payables 1,460,353 1,575,016 788,096
Cash generated from operations (253,355) 3,081,245 5,056,388
Income tax paid (528,992) (576,240) (1,041,320)
Net cash (outflow)/inflow from operating activities (782,347) 2,505,005 4,015,068
Cash flow from investing activities
Rent, interest and dividend received 4,089,880 3,212,012 6,884,867
Dividends received from associates 134,275 - 338,091
Proceeds from sale of quoted shares 114,547 - 113,438
Proceeds from disposal of property and equipment 638 2,138 412
Proceeds from part redemption of shares in associate - - 580,554
Purchase of property and equipment (211,083) (90,099) (203,956)
Net additions of investment properties 49,486 (35,467) (28,341)
Proceeds from disposal of investment properties - (2,917) -
Purchase of quoted shares - (50,774) (106,810)
Mortgage loans advanced/(redeemed) 49,077 (29,231) (30,444)
Loans on life insurance policies redeemed (44,309) (22,007) (72,667)
Purchase of government securities (7,749,017) (3,570,484) (4,980,609)
Redemption of commercial bonds 10,055 (7,578) 519,671
Net cash (outflow)/inflow from investing activities (3,556,451) (594,407) 3,014,206
Cash flow from financing activities
Dividends paid (579,784) (494,133) (566,606)
Net cash outflow from financing activities (579,784) (494,133) (566,606)
(Decrease)/increase in cash and cash equivalents (4,918,582) 1,416,465 6,462,668
Cash and cash equivalents at start of year 14,796,784 8,326,849 8,326,849
Exchange gain/(loss) on translation 46,444 129,264 7,267
Cash and cash equivalents at end of the period 9,924,646 9,872,578 14,796,784
4
JUBILEE HOLDINGS LIMITED
UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Notes to the Unaudited Consolidated Interim Financial Statements
1. General Information
Jubilee Holdings Limited is a limited liability company incorporated and domiciled in Kenya. The address of its
registered office is: Jubilee Insurance House, Wabera Street, Nairobi, Kenya. The Company has a primary listing on
the Nairobi Securities Exchange and is cross-listed on the Uganda Securities Exchange and Dar es Salaam Stock
Exchange.
The Company through its subsidiaries and associates (together forming the Group) underwrites Life and non-life
insurance risks, such as those associated with death, disability, health, property and liability. The Group also issues a
diversified portfolio of investment contracts to provide its customers with asset management solutions for their savings
and retirement needs. It has operations in Kenya, Uganda, Tanzania, Burundi and Mauritius.
2. Basis of Preparation
The measurement basis applied is the historical cost basis, except where accounting policies state otherwise. The
financial statements are presented in Kenya Shillings (KShs), rounded to the nearest thousand, unless otherwise
indicated.
3. Earnings Per share
Earnings per ordinary share is calculated by dividing the net profit attributable to Shareholders by the number of shares
outstanding at the end of the year.
Jun-18 Jun-17
Net profit attributable to Shareholder (KShs'000) 1,694,455 1,716,095
Number of ordinary shares in issue 72,472,950 72,472,950
Earnings per share (KShs)-Basic and diluted 23.38 23.68
There were no potentially dilutive shares in issue on 30 June 2018 and 30 June 2017. Diluted earnings per share are
therefore the same as basic earnings per share.
4. Dividend
The Directors recommended the payment of an interim dividend of 20% or KShs 1.00 per share (2017: 20% or KShs
1.00 per share), subject to withholding tax where applicable.
5
SUMMARY CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME SUMMARY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
June-18 June-17
Share Capital Retained Other Total Equity
Kshs ‘000 Kshs ‘000
Earnings
Gross written premium and contributions 18,693,672 18,602,358
Kshs ‘000 Kshs ‘000 Kshs ‘000 Kshs ‘000
Gross earned premiums 14,191,236 15,600,726
Outward reinsurance (5,311,719) (5,408,010) Six months ended 30 June
2018
Net insurance premium revenue 8,879,517 10,192,716
Other revenue 5,729,673 4,693,797 At start of period 362,365 19,512,980 5,355,305 25,230,650
Total income 14,609,190 14,886,513 Profit for the six months - 1,694,454 165,157 1,859,611
Net insurance benefits and claims (9,840,372) (10,381,180)
Transfer to reserves - (4,792) (290,483) (295,275)
Total expenses and commission (2,817,677) (2,744,150)
Result of operating activities 1,951,141 1,761,183 Net dividends - (72,473) (507,311) (579,784)
Share of results of associates 470,596 578,772 At end of six months 362,365 21,130,169 4,722,668 26,215,202
Group profit before tax 2,421,737 2,339,955
Taxation (562,126) (463,797) SUMMARY CONSOLIDATED STATEMENT OF CASH FLOWS
Net profit 1,859,611 1,876,158
June-18 December-17
Other comprehensive income for the year (685,312) 303,428 Kshs ‘000 Kshs ‘000
Total comprehensive income 1,174,299 2,179,586 Cash flows (used in)/from operating activities (782,347) 4,015,068
Earnings per share (Kshs) 23.38 23.68
Cash flows (used in)/from investing activities (3,556,451) 3,014,206
SUMMARY CONSOLIDATED STATEMENT OF FINANCIAL POSITION Cash flows used in financing activities (579,784) (566,606)
June-18 December-17 (Decrease)/Increase in cash and cash equivalents (4,918,582) 6,462,668
Kshs ‘000 Kshs ‘000
Cash and cash equivalents at start of year 14,796,784 8,326,849
Share capital 362,365 362,365
Other reserves 2,946,225 3,096,997 Exchange gain on translation of cash and cash equivalents 46,444 7,267
Retained earnings 21,130,169 19,512,980 in foreign currencies
Proposed dividends 72,473 579,784
Non controlling interest 1,703,970 1,678,524 Cash and cash equivalents at end of year 9,924,646 14,796,784
Total equity 26,215,202 25,230,650
Represented by:
Assets
Fixed assets 478,928 439,528
24.5
Government securities 54,944,239 44,501,907
1.2
2.4
113.0
1.1
2.3
101.1
Investment assets 28,646,119 28,351,670
22.3
2.0
0.9
Insurance assets 16,274,535 15,463,249
1.8
87.6
0.7
1.6
19.8
Other assets 2,761,155 1,414,392
81.0
0.6
16.1
Cash and cash equivalents 9,924,646 14,796,784
13.5
Total assets 113,029,622 104,967,530
68.9
Liabilities
Insurance liabilities 35,620,469 34,887,367
Deposit administration 46,161,548 42,214,336
14 15 16 17 18 14 15 16 17 18 14 15 16 17 18 14 15 16 17 18
Other liabilities 5,032,403 2,635,177
Total Asset Group Insurance Results Group Profit before Tax Share Holder Funds
Total liabilities 86,814,420 79,736,880 Kshs Billion Kshs Billion Kshs Billion Kshs Billion
Net assets 26,215,202 25,230,650 (Half Year) (6 months) (6 months) (Half Year)
