Jubilee Holdings Ranked Most Attractive Insurance Firm for Investment

Jubilee Holdings ranked most attractive listed underwriter

Shiv Arora, Cytonn’s Head of Private Equity

East Africa’s largest insurance group Jubilee Holdings Limited has been ranked as the most attractive listed underwriter on the Nairobi Securities Exchange (NSE) in the first half of 2019, as measured by franchise value and intrinsic scores.

According to a Cytonn Investments H1’2019 Insurance Report released on Monday, Jubilee Holdings maintained the top position in the franchise value, with a Score of 9.

“Jubilee Holdings took the Top Position, ranking top in the franchise score category on the back of a strong combined ratio, indicating a better capacity to generate profits from its core business. The only factor holding Jubilee back is its loss ratio, which is the highest among listed companies,” said Shiv Arora, Cytonn’s Head of Private Equity.

The franchise value and from a future growth opportunity perspective with the former getting a weight of 40% and the latter a weight of 60%. The franchise score measures the broad and comprehensive business strength of the company and the intrinsic score measures the investment return potential.

Jubilee Holdings Ranked Most Attractive Insurance Firm for Investment

Sanlam Kenya was ranked 2nd, on the back of a strong franchise score, driven by the highest Return on Average Equity, and,

Liberty and Britam Holdings came in 3rd and 4th Position, respectively, with weaker franchise scores, as a result of lower returns on assets and equity (Britam Holdings) and high loss and expense ratios (Liberty).

CIC came in 5th Position on the back of weak franchise rankings scores.

Kenya Re was not considered in the rankings given it is a re-insurance company and not a listed insurance company that undertakes traditional life and general underwriting business.