Jubilee Life insurance expenses

Jubilee Life Insurance has made headlines by posting a remarkable Sh2.1 billion net profit for the year ended December 2024, a milestone that underscores the insurer’s robust investment strategy and resilience in a challenging economic climate. This performance not only cements Jubilee Life’s position as a leading player in East Africa’s insurance sector but also highlights the company’s innovative approach to growth, digital transformation, and customer-centric solutions.

This in-depth analysis explores the drivers behind Jubilee Life Insurance’s impressive results, the strategic decisions fueling its growth, the impact of technology and digitalization, and what these achievements mean for the future of life insurance in Kenya and the broader region.

Jubilee Life Insurance’s 2024 Financial Performance: By the Numbers

Key Financial Highlights

Jubilee Life Insurance’s financial results for 2024 paint a picture of a company firing on all cylinders in investment management, operational efficiency, and market expansion. Below is a summary table of the key financial metrics:

Metric	2024 Value	2023 Value	% Change
Net Profit After Tax	Sh2.1 billion	Not stated	Significant
Net Investment Income	Sh17.1 billion	Sh9.1 billion	+87.3%
Insurance Revenue	Sh4.8 billion	Sh5.3 billion	-8%
Insurance Service Expenses	Sh4.5 billion	Sh4.0 billion	+12.5%
Total Assets	Sh149 billion	Sh122 billion	+22%
Gross Written Premium (Kenya)	+57% growth	–
Gross Written Premium (Tanzania)	+58% growth	–

Key facts:

• The company’s net investment income nearly doubled, rising 87.3% to Sh17.1 billion, driven by prudent investments in government securities and equities.
• Insurance revenue dipped by 8% to Sh4.8 billion, reflecting industry-wide pressures and increased competition.
• Insurance service expenses increased to Sh4.5 billion, attributed to higher claims and enhanced operational efforts to improve service delivery.
• The insurer’s total assets surged by 22%, reaching Sh149 billion by the end of 2024.
• Jubilee Life regained its position as the second-largest life insurer in the region, powered by strong growth in gross written premiums in both Kenya and Tanzania.

“We’re encouraged by the strides we’ve made, particularly in the performance of our investment portfolio. While there has been some pressure on insurance revenue and rising service costs, we remain focused on building a strong, stable business. Our priority is to stay connected to our customers and develop solutions that truly serve them.” – CEO Asman Mugambi

The Investment Engine: How Prudent Strategy Drove Profits

The Power of Investment Income

A standout feature of Jubilee Life Insurance’s 2024 performance is the outsized contribution of investment income to overall profitability. The company’s net investment income soared to Sh17.1 billion, a leap of 87.3% from the previous year.

Key Drivers:

• Government Securities: Jubilee Life strategically increased allocations to government bonds and treasury bills, capitalizing on attractive yields and relative safety.
• Equity Investments: The insurer’s equity portfolio benefited from a rebound in local and regional stock markets, delivering strong capital gains.
• Disciplined Asset Management: The company’s investment team adopted a risk-adjusted approach, balancing growth with capital preservation.

Impact:

This prudent investment approach not only offset pressures from declining insurance revenue and rising service costs but also protected policyholders’ savings from inflation, ensuring long-term value retention.

“Jubilee Life Insurance’s investment approach continues to deliver competitive returns that outpace inflation, protecting members’ savings and preserving their purchasing power into retirement.” – CEO’s Perspective

Insurance Operations: Navigating Revenue and Cost Challenges

Revenue Pressures and Expense Management

While investment income surged, the core insurance business faced headwinds:

• Insurance Revenue: Fell by 8% to Sh4.8 billion, reflecting a tough operating environment and increased competition.
• Service Expenses: Rose to Sh4.5 billion, up from Sh4.0 billion, mainly due to higher claims and efforts to enhance service delivery.

Underlying Factors:

• Higher Claims: An uptick in policyholder claims, possibly due to increased awareness, penetration, or macroeconomic factors.
• Operational Investments: Enhanced spending on customer service, digital platforms, and process improvements to boost client satisfaction and retention.

Despite these challenges, Jubilee Life maintained a solid bottom line, thanks to its investment income and disciplined cost management.

Market Leadership and Regional Growth

Climbing the Ranks in East Africa

Jubilee Life Insurance’s 2024 results have propelled it back to the number two spot in the regional life insurance market. This achievement is underpinned by:

• 57% Growth in Gross Written Premiums in Kenya
• 58% Growth in Gross Written Premiums in Tanzania

Growth Drivers:

• Customer Trust: Strong brand reputation and consistent delivery on promises have fostered deep customer loyalty.
• Cross-Market Collaboration: Leveraging synergies across East African markets to drive innovation and operational efficiency.
• Digital-First Solutions: Introduction of customer-centric, digital products that simplify financial planning and insurance access.

Awards and Recognition:

At the 2024 Association of Kenya Insurers (AKI) Awards, Jubilee Life Insurance received:

• First Runners-Up for Highest Growth in Policies Sold
• Most Improved New Business
• Second Runners-Up for Most Innovative Product
• Super-agent Jayshree Haria’s fifth consecutive award for 100% policy persistency, reflecting excellence in client retention

Digital Transformation: The J-Force and Beyond

A US$20 Million Digital Overhaul

Jubilee Life Insurance is not just growing; it is transforming. The company has embarked on a US$20 million digital transformation journey, fundamentally reshaping its operations, technology, and customer experience.

Four Pillars of Digital Strategy:

• Robotics Process Automation (RPA): Automating repetitive tasks to free up staff for higher-value activities and improve efficiency.
• Data Integration: Creating a unified data lake across seven entities for a 360-degree customer view, enabling personalized service and better risk management.
• Cloud Migration: Moving 100% of operations to cloud platforms (Azure, AWS, Oracle Cloud) for scalability, agility, and resilience.
• Enhanced Customer Experience: Streamlining onboarding, claims, and service processes for a seamless, digital-first journey.

AI in Claims Processing:

Jubilee Life now processes 12,000 claims daily using machine learning models, drastically improving speed and reducing errors. This innovation sets new standards for efficiency and customer satisfaction in the insurance sector.

J-Force: Revolutionizing Insurance Distribution

J-Force, Jubilee’s digital platform for agents and brokers, is a game-changer:

• Fully paperless and digitized end-to-end
• Real-time visibility of leads, sales, and commissions
• Instant commission tracking, reducing cycles from 14 days to immediate updates
• Intuitive design informed by agent and broker feedback

“Jubilee’s ambition is to move beyond being an insurance business-it is fast becoming a data-driven business, leveraging technology at every level.” – George Makori, Head of Digital Innovation

Customer-Centric Innovations and Solutions

Meeting Evolving Consumer Needs

Jubilee Life Insurance’s focus on digital-first, customer-centric solutions is central to its recent success:

• Simplified Financial Planning: Digital tools and products make it easier for customers to understand, select, and manage insurance policies.
• Personalized Service: Data-driven insights enable tailored recommendations and proactive engagement.
• Accessibility: Digital platforms extend reach to underserved segments and remote regions.

Case Study: Policy Persistency

Super-agent Jayshree Haria’s achievement of 100% policy persistency for five consecutive years exemplifies Jubilee Life’s commitment to client retention and service excellence.

Challenges and Opportunities Ahead

Navigating a Dynamic Market

Despite its strong performance, Jubilee Life Insurance faces ongoing challenges:

• Economic Uncertainty: Inflation, currency fluctuations, and macroeconomic volatility can impact investment returns and claims experience.
• Regulatory Changes: Evolving insurance regulations require agility and compliance investments.
• Competition: New entrants and fintech disruptors are raising the bar for innovation and customer experience.

Opportunities:

• Expanding Digital Offerings: Continued investment in technology can unlock new markets and improve efficiency.
• Product Diversification: Developing products tailored to emerging risks and demographic shifts.
• Regional Integration: Leveraging cross-border synergies to drive growth across East Africa.

Conclusion: Jubilee Life Insurance Sets the Pace for the Future

Jubilee Life Insurance’s Sh2.1 billion net profit for 2024 is more than a financial milestone-it is a testament to the power of strategic vision, disciplined execution, and relentless innovation. By balancing prudent investment management with digital transformation and customer-centricity, Jubilee Life is not only weathering industry headwinds but also shaping the future of insurance in Kenya and beyond.

As the company continues to build on its strengths, invest in technology, and deepen its customer relationships, it stands poised to deliver even greater value to policyholders, shareholders, and the broader community in the years ahead.

Chart: Jubilee Life Insurance Key Financial Metrics (2023 vs. 2024)

Metric	2023 (Sh)	2024 (Sh)	% Change
Net Investment Income	9.1B	17.1B	+87.3%
Insurance Revenue	5.3B	4.8B	-8%
Insurance Service Exp.	4.0B	4.5B	+12.5%
Total Assets	122B	149B	+22%
Net Profit After Tax	–	2.1B	–