Jubilee Annual Report Final - Web

SINCE 1937
Living Free
INTEGRATED REPORT & FINANCIAL STATEMENTS 2018

For over 80 years, Jubilee Insurance has
built valuable relationships based on trust.
We have earned this trust through total
commitment to serving our customers, acting
with passion and integrity to deliver on our
motto: Live Free!
At Jubilee Insurance Living Free is our

mantra; it is our raison d’être. Through
investment in technology, we allow our
valued customers to access our services from
their devices, at their convenience. Through
market-led product development and
value-added services, we give our clients
new opportunities to save, retire, access
quality health providers and to improve
their wellness and happiness. Through our
commitment to genuine client service and
speedy claims settlement, we deliver peace
of mind, and hope. We all have the right to
wealth, health and happiness. We all Live
Free!
TABLE OF CONTENTS
Financial Highlights 4
Group Information 5
Notice of the Annual General Meeting 8
Chairman’s Statement 9
Board of Directors 14
Corporate Governance Statement 20
Director’s Remuneration 26
Sustainability and Corporate Social Responsibility Journey 27
Principal Shareholders and Share Distribution 29
Report of the Directors 32
Statement of Directors’ Responsibilities 34
Independent Auditor’s Report 35
Consolidated Statement of Profit or Loss 40
Consolidated Statement of Other Comprehensive Income 40
Company Statement of Profit or Loss 41
Company Statement of Other Comprehensive Income 41
Consolidated Statement of Financial Position 42
Company Statement of Financial Position 43
Consolidated Statement of Changes in Equity 44
Company Statement of Changes in Equity 45
Consolidated Statement of Cash Flows 46
Company Statement of Cash Flows 47
Notes to the Financial Statements 48
Supplementary Information 120
Achievements 121
Corporate Social Responsibility 124
Advertisements 132
Notes 135
Jubilee Holdings Integrated Report & Financial Statements 2018 1

2 Jubilee Holdings Integrated Report & Financial Statements 2018
Living free is...
having peace
of mind
Trust is the cornerstone of our business.
Some 80 years since its foundation, Jubilee
Insurance has emerged as a market-leader
offering quality insurance products for
our diverse markets and for settling claims
promptly without a fuss. We have the
financial strength, corporate vision, passion
and integrity to build on our success and
ensure all our customers enjoy excellent
value and receive the care and support they
need. Knowing their funds and policies are
in safe hands means our clients can enjoy
complete peace of mind.

FIVE YEAR FINANCIAL HIGHLIGHTS
Gross Written Premiums and Deposit Earnings per Share (KShs per Share)
Administration Contributions (KShs Billion)
54.26
34.75 52.52
33.81 33.94
45.49
29.73 38.38
30.16
29.47
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Gross Written Premiums and Deposit Administration Earnings per share dropped by 3% to KShs 52.72 from
Contributions increased to KShs 34.75 billion in KShs 54.26 due to higher tax expense.
2018. The core Individual Life portfolio grew by 19%
as capacity building in distribution networks gained
traction, including the launch of Bancassurance in
Uganda where sales increased significantly.
Profit Before Tax (KShs Billion) Total Assets (KShs Billion)
114.17
5.41 104.97
5.16
4.56 90.57
4.14 82.38
3.95
74.51
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Profit before tax grew by 5% to KShs 5.41 billion in Total assets grew by 9% to KShs 114.18 billion mainly
2018 attributed to higher insurance underwriting results as a result of increased funds generated by growth in
as well as investment income. long-term funds.

GROUP INFORMATION
2018 2017
Capital and reserves KShs’ 000 KShs’ 000
Authorised Capital 450,000 450,000
Issued Capital 362,365 362,365
Paid-up Capital 362,365 362,365
Retained Earnings 21,649,197 20,092,764
Registered Office
Jubilee Insurance House
Wabera Street
P O Box 30376-00100 GPO
Nairobi, Kenya
Telephone: 3281000
E-mail: [email protected]; Website: www.jubileeinsurance.com
Subsidiaries
The Jubilee Insurance Company of Kenya Limited (100%)
The Jubilee Insurance Company of Uganda Limited (65%)
Jubilee Life Insurance Company of Uganda Limited (65%)
The Jubilee Insurance Company of Tanzania Limited (51%)
Jubilee Life Insurance Corporation of Tanzania Limited (51%)
The Jubilee Insurance Company of Burundi S.A. (70%)
Jubilee Life Insurance Company of Burundi S.A (70%)
Jubilee Insurance (Mauritius) Limited (80%)
Jubilee Financial Services Limited (100%)
Jubilee Investments Company Limited (Uganda) (100%)
Jubilee Investments Tanzania Limited (100%)
Jubilee Investments Burundi S.U. (100%)
Jubilee Center Burundi S.P.R.L. (80%)
Associates
PDM (Holdings) Limited (37.1%)
IPS Cable Systems Limited (33.3%)
FCL Holdings Limited (30.0%)
IPS Power Investment Limited (27.0%)
Bujagali Holding Power Company Limited (25.0%)
Auditor
PricewaterhouseCoopers CPA
PwC Tower
Waiyaki Way/Chiromo Road
Westlands
P. O. Box 43963 -00100
Nairobi
Corporate Lawyers
Daly & Inamdar Advocates
ABC Towers, 6th Floor
ABC Place, Waiyaki Way
P.O. Box 40034 - 00100
Nairobi
Share Registrar
Jubilee Holdings Limited
Principal Bankers
Diamond Trust Bank Kenya Limited
Barclays Bank of Kenya Limited
Standard Chartered Bank Kenya Limited
Citibank N.A.
Diamond Trust Bank Uganda Limited
Diamond Trust Bank Tanzania Limited
Diamond Trust Bank Burundi Limited
Habib Bank Limited
Barclays Bank

Associate Companies
Jubilee Insurance, Mombasa Branch
Bujagali Holdings Power Company Limited PDM (Holdings) Limited (Nation Center)
It is an investment company which through its subsidiary, has invested PDM (Holdings) Limited is an East African real estate company that
in the equity of Bujagali Energy Limited, an electricity generation has pioneered innovative developments in Kenya for more than
company in Uganda. The 250MW Bujagali Hydro Power Plant 50 years, shaping the direction of real estate trends in the country
contributes up to 49% of Uganda’s effective energy capacity. The by pursuing a philosophy of developing properties that serve an
project is Africa’s largest privately financed hydropower project economic purpose and also uplift the quality of life for the community.
and currently the largest Clean Development Mechanism project
registered in a Least Developed Country. The project was awarded PDM’s landmark developments in Kenya include the IPS Building,
Africa Deal of the Year 2007’ by EuroMoney Project Finance which was the first high rise building in Nairobi, Nation Centre
Magazine in London. and the award winning Courtyard along General Mathenge Drive,
Westlands.
IPS Cable Systems Limited (Seacom)
IPS Power Investment Limited (Tsavo Power Company Ltd)
This is an investment company which has invested in the $650
million, 15,000 km Seacom submarine fiber optic cable project. This is an investment vehicle company which, through its subsidiary,
This project, which links South Africa, Mozambique, Madagascar, has invested in the equity of Tsavo Power Company which was
Kenya and Tanzania with other international broadband cables, will established to own and operate the 74.5MW Kipevu II thermal power
provide low cost and high quality broadband capacity. project located in Mombasa, generating power for the Kenyan grid.
FCL Holdings Limited (Farmer’s Choice Limited) Industrial Promotion Services (Kenya) Limited
FCL Holdings Limited is an investment vehicle company which has The principal activity of this company is that of project development
invested in the equity of Farmers Choice Limited, a company whose within the private sector. It currently has investments in the
main objective is the sale of fresh and processed meat products. manufacturing and infrastructure sectors.

Associate Companies
Bujagali Holdings Power Company Limited Industrial Promotion Services (Kenya) Limited
FCL Holdings Limited (Farmers Choice Limited) IPS Cable Systems Limited (Seacom)
PDM (Holdings) Limited (Nation Center) IPS Power Investment Limited (Tsavo Power)

NOTICE OF THE ANNUAL GENERAL MEETING
NOTICE IS HEREBY GIVEN THAT THE 81ST ANNUAL GENERAL MEETING OF THE SHAREHOLDERS WILL BE HELD
AT THE NAIROBI SERENA, KENYATTA AVENUE, ON 25 JUNE 2019 AT 11:00A.M. TO CONDUCT THE FOLLOWING
BUSINESS:
1. To consider and, if thought fit, to adopt the audited consolidated financial statements for the year ended 31 December, 2018 together
with the reports of the Chairman, Directors and Auditor thereon.
2. To confirm the payment of the interim dividend of KShs 1.00 per share made on 5 October 2018 and approve the payment of a final
dividend of KShs. 8.00 per share to be paid on or about 25 July 2019 to Shareholders registered as at 25 June 2019.
3. To re-elect the following Directors:
a. The following Directors retire by rotation in accordance with Article 86 of the Company’s Articles of Association and being eligible,
offer themselves for re-election:
(i) Mr. Juma Kisaame

(ii) Mr. Shabir Abji
(iii) Mr. Nizar Juma
b. Mr. Ashif Kassam retires in accordance with Article 90 of the Company’s Articles of Association, (this being his first Annual
General Meeting since his appointment) and being eligible, offers himself for re-election.
4. In Accordance with the provisions of Section 769 of the Companies Act 2015, the following Directors being members of the Board Audit
& Compliance Committee be confirmed to continue to serve as members of the said Committee:
a. Mr. Zul Abdul

b. Mr. Juma Kisaame
c. Mr. John Metcalf
d. Mr. Ashif Kassam
5. To approve the Directors’ Remuneration Report for the year ended 31 December 2018 and authorize the Board to set the Directors’
remuneration.
6. To note that the independent auditors, PricewaterhouseCoopers, will continue in office in accordance with Sec. 721 and to authorise the
Directors to set their remuneration.
By Order of the Board
Margaret Muhuni-Kipchumba
Company Secretary
29 April 2019
Notes:
1. A member entitled to attend and vote at this meeting may appoint a proxy to attend and vote on his/her behalf and such proxy need
not be a member of the Company.
2. The proxy form can be downloaded from the Company’s website www.jubileeinsurance.com or obtained from the Company Secretary
at the registered office of the Company at Jubilee Insurance House, 5th Floor, Wabera Street, Nairobi. To be valid, the proxy form
should be returned to the Company by delivery or by post to P.O. Box 30376 - 00100, Nairobi to arrive no later than 48 hours before
the meeting.

CHAIRMAN’S STATEMENT
DEAR SHAREHOLDERS,
I am pleased to present Jubilee Holdings Limited’s (“JHL”/”Jubilee”)

2018 Integrated Report and Financial Statements. During the year,
Jubilee maintained its focus on building sustainable underwriting
profitability and reinforced initiatives implemented to improve risk
selection and pricing as price competition continues to place pressure
on underwriting margins across regional markets. This, coupled with
further investment in systems and control enhancements, has allowed
Jubilee to improve the quality of its insurance portfolio across the
region. Despite a difficult year for the insurance sector, I am pleased to
state that Jubilee has maintained its position as the largest composite
insurer in East Africa for the tenth consecutive year and retained the
No.1 position in the short-term business in Kenya, and overall No.1
position in Uganda and in Tanzania. Jubilee has maintained its pre-
eminence of the medical insurance sector in East Africa both in terms
of turnover and underwriting results.
EAST AFRICA’S ECONOMY
The East African regional economy has demonstrated continued

and sustained economic growth, assisted by commodity prices,
infrastructure development and the prospect of significant oil
production. Kenya’s GDP growth is estimated at 6% in the first three
quarters of 2018 compared to 4.7% in the corresponding period
in 2017. The improved performance is attributed to the recovery
in agriculture, construction, electricity, and manufacturing sectors.
Headline inflation averaged 4.7% in 2018 compared to 8.0% in
2017; however, despite the drop in the yield curve, private sector
credit growth remained muted, growing by a marginal 2.4% in 2018
(5.0% growth in 2017).
On the regional front, Tanzania’s GDP is estimated to have grown

by 6.7% in the first three quarters of 2018 compared to 6.2% in the
corresponding period in 2017. The Bank of Tanzania attributes this
to substantial improvement in infrastructure construction, information
and communication, manufacturing, and mining sectors. Further,
there was recovery in private sector credit growth which stood at
4.9% in December 2018 reflective of accommodative monetary policy
and credit risk measures instituted. In Uganda, GDP growth improved
in 2018 and is estimated at 5.8%. The rebound was largely driven
by growth in information and communication services, agriculture
production, construction sector, and strength in the industrial and
services sectors. Mauritius is estimated to have grown at 3.9%, and
Burundi estimated to have marginal growth of 1.4%.
INSURANCE INDUSTRY
This was a challenging year for the insurance industry as highlighted

by the large losses reported by many of our peers. Several external
factors, such as the drop in the yield curve and the decline in the
stock markets resulted in lower investment income, and a slowdown
in real estate and reduced spending on major infrastructure projects
negatively impacted the overall growth and performance of the
industry. This was compounded by the continued lack of pricing and
risk management discipline in the industry, with several peers facing
a solvency crisis as their Capital Adequacy Ratios fell well below the
legal minimum requirement.
Preliminary data shows that the insurance industry in Kenya grew by

only 2% in non-life business and 5% in life business. Uganda recorded
much stronger growth of 10% for non-life business and 33% in life
business, while Tanzania grew by 4% in non-life business and 15%
in life business. Whilst the regional market continues to have great
growth potential, particularly Uganda and Tanzania, both of which
markets have insurance penetration of less than 1%, the insurance

9
CHAIRMAN’S STATEMENT (CONTINUED)
industry continues to face numerous challenges including a highly In the period under review, Jubilee introduced two innovative
fragmented distribution system, high levels of risk, unprecedented offerings, the “Maisha Fiti” and the “JubiAgent”. Maisha Fiti
incidence of fraud, scarcity of qualified human resources and is a comprehensive wellness program that encompasses Mums
increasing competition in already crowded markets. These challenges club, Seniors Wellness club and includes a Loyalty program. The
are partly mitigated as insurance regulators work with the industry program aims at combating the rising lifestyle diseases through
to introduce regulations that allow greater clarity in areas such a encouraging and incentivizing healthy living and disease prevention
credit control, reinsurance, bancassurance and capital adequacy through adoption of healthy lifestyles. The JubiAgent is a mobile
supervision. Laws enforcing premium payment before cover have app that allows our agents to transact with the company including
been passed in Uganda and Tanzania that are already easing credit requesting payment of commissions within 24 hours of the payment
control challenges, and a similar law is expected to be passed in of premiums. Since its launch, JubiAgent has enrolled almost 1,000
Kenya. Bancassurance, already well established in Kenya, was agents with 92% as active users.
launched in Uganda in 2018 and is awaiting regulatory approval in
Tanzania. This will provide significant growth opportunities for retail A major challenge to the affordability of health care in the region
products and services. is the very high use of costly branded medications where an
equally effective generic is available. We continue to educate both
Minimum capital requirements are expected to increase as Risk medical practitioners and members to substantially increase the use
Based Capital (RBC) supervision, introduced in Kenya in 2015, is of affordable, high quality and equally effective generic drugs as
being considered in other jurisdictions in the region. Jubilee is well opposed to branded versions which unnecessarily consumes a very
positioned to meet the requirements of increasingly strict solvency large portion of their medical budget. In many developed countries,
regimes across East Africa, which will be positive for both the industry generic drugs represent over 80% of the cost of drugs dispensed
and the policyholder protection. Whilst the RBC requirements in whereas in Kenya, where the ratio should be considerably higher,
Kenya were relaxed in 2016 to accommodate weaker companies, the ratio is estimated to be amazingly at best at around 50%.
the Regulator has indicated a commitment to the development of the
risk based framework and reviewing the reserving methodologies SHORT TERM INSURANCE - GENERAL
to lead to a higher level of stability and consumer protection in the
industry. All the Group’s insurance subsidiaries across the region General insurance premiums grew marginally in 2018 to reach
are well capitalized and the Kenyan company continues to be fully KShs 10.8 billion (2017 – 10.7 billion), largely due to intense
compliant with the Risk Based Capital framework. competition and undercutting of prices in Kenya but also throughout
the region. Against this challenging background, Jubilee was
FINANCIAL RESULTS able to achieve improved insurance results and can report a 14%
increase in underwriting profit at KShs 609 million (2017 – KShs
Reflecting on these external factors, industry conditions and economic 534 million), with positive contributions from all lines of business. In
environment, JHL delivered excellent results with overall Gross Marine insurance, cover continues to be obtained outside of Kenya,
Written Premium, including Deposit Administration contributions, despite the Government’s well-meaning intention to have all marine
increasing marginally to KShs 34.75 billion, whilst pre-tax profit cover issued locally due to lack of enforcement of the regulations.
increased 4% to KShs 5.41 billion (2017 – KShs. 5.16 billion), In addition, fraud continues to be a major cost for this business,
supported by continued strong contribution from insurance results at particularly in motor, and we continue to develop and implement
KShs. 2.83 billion (2017 – KShs. 2.7 billion). enhanced procedures to identify and minimize fraud.
The Group’s total assets increased by 9% from KShs 105 billion to LONG TERM INSURANCE - LIFE AND PENSION
KShs 114 billion. Total shareholders’ equity and reserves increased
11% from KShs 23.6 billion to KShs 26.2 billion. On the investment Life insurance business Gross Written Premium and Deposit
front, the NSE 20 declined by 24% in 2018, resulting in significant Administration inflows registered a growth of 2% to KShs 14 billion
fair value losses, and the lower yields on Government bonds across (2017 – KShs 13.7 billion). Jubilee’s core Individual Life portfolio
the region resulted in subdued growth in investment income. Against grew by 19% as capacity building in distribution networks gained
this backdrop, Jubilee’s overall investment portfolio performed traction, including the launch of bancassurance in Uganda where
satisfactorily as a result of our strategy to hold a broadly diversified the sales increased significantly. The Corporate Group Life portfolio
and conservative portfolio of investments. Our core investment went through a re-structuring exercise, and the focus will once again
holdings includes quoted securities, government bonds, real estate, turn to growth in 2019.
unquoted securities and projects that generate US dollar returns.
DIVIDEND
SHORT TERM INSURANCE - MEDICAL
I am pleased to report that the Jubilee Holdings Board has
Medical insurance business premiums increased 4% to KShs 9.94 recommended a cash dividend of 180% for the year 2018 (2017:
billion (2017 – KShs 9.6 billion). Growth was constrained in the 180%), on the share capital of KShs 362.4 million. An interim
Kenyan company due to intense price competition, which was dividend of 20% (KShs 1.00 per share) was paid on 5th October
countered by a focus on service and efficiency which allowed the 2018, and the Board is seeking approval for a final cash dividend
company to sustain underwriting margins whilst the industry of KShs 8.00 per share.
overall continued to make losses. Underwriting results also improved
in Uganda and the Tanzania portfolio moved into profit after Jubilee share price closed 2018 at KShs 405, declining less than the
investments in systems and improvements in risk pricing and claims drop on the overall market during the year. Since listing in 1984,
controls. This, together with a continuation of the initiatives started in JHL has always declared dividends and has never declared a lower
2017 to reduce costs and improve efficiency, resulted in continued dividend than the previous year.
strong underwriting profit of KShs 753 million (2017 – KShs 878
million).
10
CHAIRMAN’S STATEMENT (CONTINUED)
SPLIT OF COMPOSITE COMPANY IN KENYA opportunities whilst protecting profitability. Key strategic initiatives
for 2019 include completion of enhanced IT infrastructure and
During the year, the Boards of JHL and Jubilee Insurance Kenya systems, increased presence in the emerging digital economy,
approved the split of the Kenya subsidiary into three separate deployment of new and more inclusive medical insurance products,
companies specializing in Medical, General and Life businesses holistic operational and process reengineering, product innovation
respectively. The Insurance Regulatory Authority in Kenya has and continued development of agency and bancassurance networks
encouraged the short-term and long-term companies to operate to drive our top line.
as separate entities to minimize the risk of comingling funds and
to protect the long-term policyholder funds. Whilst Jubilee has BOARD OF DIRECTORS
operated these businesses as separate divisions for several years,
we found that the composite splits in 2015 in both Uganda and The Directors who held office in 2018 and to the date of this report
Tanzania enabled more rapid and focused growth of the Life are listed on page 14 to 15 of this report. As we continue to expand
companies. Two new companies were incorporated in December our horizons, the Board continues to reflect your Company’s regional
2018 for the general business and the health business respectively, and growth related outlook, while drawing from the Company’s
and an application was filed with the IRA in early 2019 to transfer Vision, Mission and Values which continue to steer your Company.
these businesses to the new companies with the existing company For the first time in Jubilee’s 82 year history, the Directors of all
continuing with the Life business. The intended effective date of the our companies met for a very successful 3 day Board Retreat where
split is 1 January 2019. we discussed the potential and future of the insurance industry in
the region, deliberated on disruption, innovation, convergence
CORPORATE SOCIAL RESPONSIBILITY of insurance and technology, and digitalization, and agreed on
a strategy for the next 5 to 10 years. At the retreat, the Directors
Jubilee insurance is committed to delivering social, economic, and renewed their commitment to increasing the affordability and
environmental benefits to all our stakeholders. Towards this end, accessibility of insurance to many more people throughout the
in 2018, Jubilee continued with 80th Anniversary projects namely region to improve their quality of life.
the Live Free Painting, School Renovation, Ear Operations, and Eye
project. The Live Free Painting project nurtures and encourages APPRECIATION
children to express their creativity through artwork. Our CSR
activities are further outlined on pages 27 to 28 of this Integrated The contributions of Jubilee’s various stakeholders have ensured that
Report. continued strong performance is achieved. These are none other
than our business partners, intermediaries and customers. I would
Going into the future, Jubilee Insurance will remain a proactive and like to thank you for your continued support and loyalty, which has
a responsible corporate citizen committed to improving the lives of been instrumental in reinforcing Jubilee’s position as the invincible
our local communities. market leader in Kenya and in East Africa.
MARKET PRESENCE AND RECOGNITION I also thank all our staff across the region who continue to show
dedication and provide superior service to our customers. I would
Jubilee was very pleased to be recognized by the business community also like to acknowledge with appreciation my colleagues in the
and insurance industry for the excellence of our business practices Board and those on the Boards of the rest of the subsidiaries for their
by winning several awards. During the year 2018, Jubilee scooped diligence, guidance and support that has ensured that we achieve
29 awards in total. Our major awards are listed on page 121 of this excellent results during the year. It is this dedicated and loyal support
Integrated Report. that has enabled the company to become the largest insurance
Group in East Africa, whose sustained growth over the decades
OUTLOOK and reputation as the most trusted insurer in the region has been
built on our solid values and unyielding ethical practices, a strong
Economic prospects for 2019 remain strong with improved and growing balance sheet and a commitment to fair settlement of
visibility in the timing of investments in the oil sector and major claims. We are indeed very proud of these accomplishments and
infrastructure projects but offset by the growing levels of public debt strive to continue to build on this solid foundation.
and the potential drought conditions. Whilst the regional economy
is expected to continue to grow at the recent pace of around 5%
- 6%, in the medium to long term there remains uncertainty due
to growing concerns around the rapid rate of borrowing by the Nizar Juma
national governments, increasing annual debt service burden, and Chairman
the crowding out of private sector borrowing resulting in reduced
availability of credit to SMEs which is the driving force of economic 29 April 2019
growth and employment in both the formal and informal sectors,
both important growth areas for the insurance industry.
We continue to be optimistic as we focus on our strategic goals

to ensure that Jubilee continues to perform strongly in 2019 and
generate sustainable and stable returns for our shareholders. We will
continue to focus on appropriate risk selection and best management
practices so as to balance our entrepreneurial approach to business

11
Living free is...
being valued
In order to stay ahead of our competition,
Jubilee Insurance invests heavily in research
and development - gathering market
intelligence in order to understand the evolving
needs of our valued customers, identifying
new markets and creating innovative products.
From added-value services such as our
popular Maisha Fiti wellness programme
to bespoke savings plans for education or
traditional weddings, Jubilee Insurance
is always on the forefront of product
development. Recent niche products added
to our portfolio include: Msafiri, Maisha Fiti,
J-Inue, Safari Vocha and Kwanjula.

board of directors
Julius Kipng’etich Margaret Kipchumba Nizar Juma Zul Abdul Juma Kisaame
REGIONAL COMPANY CHAIRMAN
CEO SECRETARY
KEY
Board Audit and Compliance Committee Board Finance Committee Board Property Committee

board of directors
Sultan Allana Ashif Kassam Lutaf Kassam John Metcalf Jane Mwangi Shabir Abji
Board Nominating and Human Resource Committee Board IT Committee

board of directors (continued)
Mr. Nizar Juma (75) Non-Executive Chairman

Mr. Juma is a Non-Executive Director and Chairman of Jubilee Holdings Limited and its subsidiaries having been first appointed to the
Board in 2004. He is also the regional Chairman of the Industrial Promotion Services group of companies and is a Chairman and Director
in various other private entities in the industrial and commercial sectors. Mr. Juma holds a BSc. (Econ) Joint Hons in Economics, Law &
Accountancy from the University of Wales – Cardiff. He is a recipient of a number of national awards including the Award of the Silver Star
of Kenya by H.E. The President of Kenya for outstanding service to the nation (1982) and was awarded The Life Time Achievement Award
in the 2011 Insurance Industry Awards.
Mr. Sultan Ali Allana (59) Non-Executive Director

Mr. Sultan Ali Allana is a Director of the Aga Khan Fund for Economic Development (AKFED) and has the oversight responsibilities for
AKFED’s investments in Banking, Insurance and Aviation. Mr. Allana is a career banking professional with over 33 years of experience in
retail, corporate and investment banking. Mr. Allana joined the Board in 2006.
Mr. Lutaf Kassam (65) Non-Executive Director

Mr. Kassam was appointed to the Board in 2006 and chairs the Board Finance Committee and is a member of the Board Property Committee.
Mr. Kassam, a member of the AKFED Executive Committee, is responsible for AKFED’s global portfolio on Industry and Infrastructure. He is
also a Director on the Board of Kenya Association of Manufacturers, the East African Business Council (EABC), an advisory Board Member
of the Sustainable Energy for All (SE4ALL) initiative under The UN Secretary-General and the World Bank Group, past First Vice Chairman
of the Nairobi Stock Exchange (NSE) and a member of the National Economic and Social Council (NESC) in Kenya.
Mr. John Metcalf (59) Non-Executive Director

Mr. Metcalf was appointed to the Board in 2006. He has extensive international experience in the insurance industry and is currently
the Head of Insurance for the Aga Khan Fund for Economic Development. He is a Director on the Boards of the Company’s insurance
subsidiaries. Before joining the Company, he was the Executive Chairman of the Allianz Group Insurance subsidiaries in Egypt. Mr. Metcalf
is a Fellow of the Chartered Insurance Institute and holds a BA (Hons) in Banking Insurance & Finance from Sheffield Hallam University.
Mr. Metcalf is a member of the Board Finance Committee, Board Audit & Compliance Committee, Board Nominating & HR committee and
Board IT Committee.
Mrs. Jane Mwangi (55) Non-Executive & Independent Director

Mrs. Mwangi joined the Board in 2014 and chairs the Board Nominating & Remuneration Committee. She is the Managing Partner at
Robson Harris & Co. Advocates and has previously worked at the Central Bank of Kenya, Deposit Protection Fund Board and the United
Nations, Department of Oversight Services (OIOS). She is an Advocate of the High Court of Kenya with over 20 years’ experience, a Notary
Public, a Commissioner for Oaths and a member of the Chartered Institute of Arbitrators. She is an accredited Governance Auditor and a
Certified Public Secretary. She holds a Master Degree in Business Law from the University of Nairobi and University of Hull, UK.
Mr. Juma Kisaame (56) Non-Executive Director

Mr. Kisaame was appointed to the Board in 2016 and is a member of the Board Audit & Compliance Committee and the Board IT Committee.
He is the former Managing Director of DFCU Bank Uganda and has over 20 years’ experience in the financial sector. Mr. Kisaame holds a
Bachelors of Commerce degree majoring in Accounting from Makerere University and is an Alumni of the Advanced Management program
at INSEAD, France. He has been a Director of Uganda Revenue Authority and Chairman of Uganda Investment Authority.
Mr. Shabir Abji (60) Non-Executive & Independent Director

Mr. Abji joined the Board in 2013 and chairs the Board IT Committee and is also a member of the Board Finance Committee. Mr. Abji is
a businessman and assisted in the running of the family business, and in 1984 set up the company operations in Uganda. As the Group
Director, he was instrumental in setting up Uganda Oxygen, Twiga Chemical Industries Uganda, Service and Computer Industries Uganda
(Formerly NCR) and American Communication and Technologies. Mr Abji has served as the Chairman of Aga Khan Health Services,
Tanzania, a Councilor of the Confederation of Tanzania Industries and currently is the Chairman of Dar es Salaam Tourism Executive Board.
He is also the Chairman of the Tanzania Asian Development Association (in formation) and has been involved in fund raising activities for
various causes and is a member of the FAO sponsored Telefood Committee.
Mr. Zul Abdul (67) Non-Executive & Independent Director

Mr. Abdul joined the Board in 2014. He is the CEO, Trans-Orbit Kenya Limited. He has previously held key leadership voluntary positions
having served as the President of Aga Khan National Council in Kenya, the Chairman of Aga Khan Education Services, Chairman of the
Jubilee Fund Limited, director of Anfield Holdings Ltd, a Property Development company and Executive Director of Wiggins Teape Ltd, an
international company manufacturing and trading in paper. Mr. Abdul is the Chairman of the Board Audit & Compliance Committee and is
a member the Board Property Committee and Board Nominating & Human Resources Committee.

board of directors (continued)
Mr. Ashif Kassam (50) Non-Executive & Independent Director

Mr. Kassam was appointed to the Board on 28th March 2019 and a member of the Board Audit & Compliance Committee. He is a Fellow
Member of the Institute of Certified Public Accountants of Kenya (ICPAK) and the Association of Chartered Certified Accountants, UK
(ACCA). He is a practising Member of the Institute of Certified Public Accountants of Uganda and a Member of the Chartered Institute of
Arbitrators UK. He is also a Member of the National Board of Accountants & Auditors, Tanzania. He is a recipient of the Order of the Grand
Warrior (O.G.W.) as well as ACCA Achievement Award in recognition of his contribution to the development of the accountancy profession
both locally and globally. He has extensive experience in audit & assurance, tax, transaction & risk advisory and management consulting
and is currently the Executive Chairman of RSM Eastern Africa LLP. He also serves on the Boards of JHL’s subsidiaries, The Jubilee Insurance
Company of Kenya Limited and Jubilee Financial Services Limited. Mr. Kassam is a Board Member of the Entrepreneurs Organisation -
Kenya and is the Accelerator Chair, a program that supports the development and growth of early stage entrepreneurs.
Mrs. Margaret Kipchumba (45) Company Secretary

Mrs. Kipchumba was appointed Company Secretary of Jubilee Holdings Limited in 2014. She also serves in the same capacity in the
insurance and fund management subsidiaries in Kenya and has oversight responsibility for the company secretarial function in the regional
subsidiaries. Mrs. Kipchumba is an Advocate of the High Court of Kenya, a Certified Public Secretary and an accredited Governance
Auditor. She is a Member of the Law Society of Kenya, the Institute of Certified Public Secretaries of Kenya and the Institute of Directors,
Kenya.

Living free is...
the freedom of
expression
At Jubilee Insurance, we believe that everyone
should have access to economic opportunities,
medical care, education and creative
disciplines. We are proud of our dedicated
CSR Team who, working alongside our local
partners, has helped to build a strong future
for the communities we serve.
Jubilee Insurance is the founder and sponsor

of the The Live Free Painting Project, which
nurtures and encourages children to express
their creativity through artwork. The project
has so far awarded 33 students in East
Africa with full secondary school education
scholarships and ongoing career mentorship.
In 2018, the students went through training
in ‘abstract thinking’ in art and received
exposure to the works of art at the GoDown
Art Center in Nairobi.

CORPORATE GOVERNANCE STATEMENT
The Company views the application of good corporate governance practices as fundamentally key to achieving a healthy and sustainable
return on investment for its shareholders while fulfilling its social mandate to improve the quality of life for all stakeholders. The Directors
therefore remain committed to maintaining the highest standards of good corporate governance in all jurisdictions the Company operates
in for the benefit of all stakeholders.
The Company has adopted the Capital Markets Authority Code of Corporate Governance Practices for Issuers of Securities to the Public,
2015 (“Code”). The Code sets out the principles and makes specific recommendations on structures and processes which companies should
implement in making good corporate governance an integral part of their business dealings and culture. In keeping with the Code, a
governance audit for the financial year ended 31 December 2018 was undertaken by an independent accredited governance auditor to
assess the level of application of good governance practices in the Company. The reporting template for disclosing the extent to which the
Company has implemented the Code is available on the Company’s website www.jubileeinsurance.com. This is the second year of reporting
on the Code and the Board is happy to note that the Company has made progressive steps towards full application of the Code and this
forms part of the efforts to constantly improve governance practices.
Based on the overall performance of the Company, the Governance Auditor’s opinion is that the Board has established, implemented and
overseen an effective governance framework structure and the control environment is consistent with the legal and regulatory requirements,
internal policies and good governance practices in the interest of shareholders and stakeholders.
BOARD OF DIRECTORS
Composition of the Board
The Company is led by an effective Board that provides strategic direction, oversight over management and ensures that Management is
creating value for all stakeholders.
The Board currently comprises of nine (9) Directors all of whom are non-executive. Four (4) out of the nine (9) Directors are independent.
In determining the independence status of the Directors, the Company has applied the criteria set out in the Code. The Board, through the
Nominating and Human Resources Committee, carries out an annual assessment on each Director’s independence status to ensure that
the Board maintains a healthy ratio of independent Directors which at the very least should meet the minimum requirement prescribed by
the Code - one third. All the independent Directors have served for a tenure less than 9 years. Each Director’s profile is given on page 16
of this Annual Report and highlights, amongst others, the Directors’ qualifications, age, their independence status and other key board
memberships. Notwithstanding a Director’s non-executive and/or independence status on the Board, all Directors recognize that they are
collectively responsible to the shareholders and stakeholders for the viable long-term sustainability of the Company. Whilst the Articles of
Association allow for the appointment of alternate directors on the Board there are currently no alternate or shadow directors on the Board.
Changes in Board membership
All appointments to and resignations from the Board are carried out in accordance with the Articles of Associations and are disclosed to the
shareholders and to the public as prescribed by the Capital Markets Authority regulations and the Code. On 5th July 2018, Mr. Moez Jamal
resigned as a Director due to increased professional commitments and a public announcement was issued. On the same day, the Board upon
the recommendation of the Board Nominating and Human Resource Committee (BNHRC) appointed Mr. Ashif Kassam as a non-executive
independent Director and issued a public announcement on the same. In accordance with the Articles of Association, Mr. Ashif Kassam
retires at the forthcoming Annual General Meeting and being eligible offers himself for re-election by shareholders.
Also, in accordance with the Articles of Association, at least one third of the Directors retire by rotation at each Annual General Meeting
and are eligible to seek re-election. In determining the Directors retiring by rotation, consideration is given to those who have been in office
longest since their last election. The Directors retiring by rotation are listed in the Notice of the AGM on page 8.
Induction of New Board Members
Newly appointed Directors undergo a comprehensive, formal and tailor made induction programme to ensure their effective contribution on
the Board and committees. The induction amongst others, covers the nature of the Group’s business, Group organizational structure, Board
and Committee mandates, financial performance review over the previous financial periods as well as the role, duties and responsibilities
expected of the Directors. The Directors receive an induction pack which comprises the Memorandum and Articles of Association, Board
Charter and Directors’ Code of Ethics, Committees Terms of Reference and minutes from previous Board meetings. The induction process is
coordinated by the Chairman, the Group Chief Executive Officer and the Group Company Secretary.
Board Charter
The Board has put in place a Board Charter that defines the governance parameters within which the Board exists and sets out specific
responsibilities to be discharged by the Board and Directors collectively, as well as certain roles and duties incumbent upon Directors as
individuals.
Each Director is called upon to subscribe to the Charter and in doing so, acknowledges the Company’s values and commits to upholding
them. The Charter was last reviewed in March 2019 is available on the Company’s website at www.jubileeinsurance.com.

CORPORATE GOVERNANCE STATEMENT (CONTINUED)
Role of the Board
The Board’s primary responsibility is that of fostering the long-term business of the Company consistent with its fiduciary responsibility to
the shareholders. The responsibilities of the Board are articulated in the Board Charter while the conduct of Board members is governed
by the Directors’ Code of Ethics and Conduct. Both documents are available on the Company’s website, www.jubileeinsurance.com. The
responsibilities imposed by these documents are in addition to those imposed by legislation and regulations applicable to the Company.
During the year under review the Board met four (4) times to monitor business performance against the business plan and budget. In the year
under review, the Directors held a strategy retreat which was attended by all Group directors to agree the Group strategy in 2019 going
forward as well as the 2019 budgets. The record of attendance at the Board meetings is set out below:
Name April May August November

Nizar Juma √ √ √ √
Sultan Allana A A √ √
Lutaf Kassam √ A √ √
Juma Kisaame √ √ √ √
John Metcalf √ √ √ √
Shabir Abji A √ √ √
Jane Mwangi A √ √ √
Moez Jamal √ A n/a n/a
Zul Abdul √ √ √ √
Key:
√ - Present A - Absent with apologies n/a - resigned on 5th July 2018
Senior management including the Group Chief Executive Officer, the Group Finance Officer and any other officers as may be required,
attend Board Meetings by invitation to ensure informed decision-making by the Board of Directors. The Company Secretary attends all the
meetings of the Board to primarily advise on legal regulatory and governance issues and ensure accurate documentation of Board decisions.
In addition, the Board invites independent professionals to attend meetings and provide advice as may be necessary.
SEPARATION OF THE ROLE OF THE CHAIRMAN AND GROUP CHIEF EXECUTIVE OFFICER
The Board Charter stipulates a clear separation of the role and responsibilities of the Chairman and the Group Chief Executive Officer
(GCEO). The Chairman is an non-executive Director and his primary role is to direct the Board’s business and act as its facilitator and guide,
ensuring the Board is effective in its task of setting and implementing the Company’s direction and strategy. The GCEO is responsible for the
day-to-day leadership of the Company’s business affairs and ensures the execution of strategy as set by the Board. The separation of the
roles is to promote accountability and facilitate division of responsibilities as well as to ensure a balance of power and authority such that
no one individual has unfettered powers of decision making.
BOARD COMMITTEES
In order to effectively carry out its governance responsibilities, the Board has established five standing committees as listed below and
delegated specific mandates to them. These committees operate under clearly articulated terms of reference which clarify their responsibilities
and scope of authority. The committees have unrestricted access to any information within the Company and have unfettered access to
the Company Secretary and independent professionals to enable them effectively discharge their functions. All committees report to the
Board at each Board meeting highlighting matters discussed at their respective meetings and recommended actions for Board approval in
appropriate cases. Notwithstanding the delegated authority to these committees, the Board remains fully responsible for the areas overseen
by the committees and activities of the committees.
The mandates of the committees and their membership are summarized as follows:
Board Audit & Compliance Committee (BACC):
The mandate of the BACC is broadly speaking to assist the Board in the following five (5) areas where the key responsibilities include
financial reporting and compliance with applicable financial reporting standards, oversight of Internal Audit function and their review
of financial and operational controls, liaising with external auditors including receiving and reviewing their reports and letters, monitor
compliance with legal and regulatory requirements and review risk management issues within the Group. The Members of the BACC are
Mr. Zul Abdul (Chairman), Mr. Juma Kisaame, Mr. John Metcalf and Mr. Ashif Kassam. Their profiles are highlighted on page 16 and 17.
Board Nominating and Human Resource Committee:
This committee reviews all new nominees to the Board and is mandated to assess the performance and effectiveness of Directors. The
Committee also reviews and approves the HR strategy in the Company.
The members of this committee are Mrs. Jane Mwangi (Chairperson), Mr. Nizar Juma, Mr. John Metcalf and Mr. Zul Abdul. Their profiles
are highlighted on page 16 and 17.

Board Finance Committee:
This committee reviews and makes recommendations on the financial and investment business of the Company The committee also provides
guidelines and limits for investment of the Company’s funds. The members of this committee are Mr. Lutaf Kassam (Chairman); Mr. John
Metcalf and Mr. Shabir Abji. Their profiles are highlighted on page 16 and 17.
Board Information Technology Committee:
This committee is responsible for IT governance, overseeing and monitoring the IT strategy and roadmap formulation, IT investment proposals,
review IT investments such as new systems recommendations from a technical and operational perspective. The members are Mr. Shabir Abji
(Chairman); Mr. John Metcalf and Mr. Juma Kisaame. Their profiles are highlighted on page 16 and 17.
Board Property Committee:
The committee deals with the Company’s property portfolio and makes recommendations to the Board. The members are Mr. Nizar Juma
(Chairman); Mr. Lutaf Kassam and Mr. Zul Abdul. Their profiles are highlighted on page 16 and 17.
REMUNERATION POLICIES
Directors:
The particulars of the Directors’ remuneration are given in the Directors’ Remuneration Report on page 26.
Senior Management:
The Board Nominating & Human Resources Committee is mandated to review and determine the Company’s policy on remuneration
and advise on the specific remuneration packages of senior managers so as to ensure that they are fairly rewarded for their individual
contributions to the Company’s overall performance. All employees in the Company are eligible for an annual bonus which is determined by
the overall performance of the Company and the individual’s performance against a pre agreed Balanced Scorecard. The Company does
not have any share options schemes for employees.
CONFLICT OF INTEREST
The Group ensures that the governance framework not only monitors compliance with legislation and regulations but also monitors the
ethical climate within the organization. Towards this end, all employees’ upon joining the Company and on an annual basis are required
to sign up to the Code of Conduct and Ethics which aims to encourage honest and ethical business conduct. The Board has also adopted
a Directors’ Code of Ethics and Conduct. One of the key principles underlying ethical business conduct is the avoidance and disclosure of
conflict of interest. Conflict of interest refers to a situation where an employee’s or Director’s private interest or that of a family member or
associated institution interferes or appears to interfere with the interests of the Company as a whole. Directors are under statutory obligation
to avoid a situation in which the Director has, or can have, a direct or indirect interest that conflicts, or may conflict with the interests of the
Company.
Where the conflict is inevitable, an employee is required to notify the Group Chief Executive Officer while a Director is required to notify
the Chairman of the Board as promptly as practicable and absent himself/herself from any discussion or decision by the Board that relates
to the matter giving rise to the conflict.
Disclosure on related party transactions:
The Company’s disclosure on related party transactions is given in note 35 on page 91and 92 of this Integrated Report.
INSIDER TRADING POLICY
The Capital Markets Authority Act has prescribed certain regulations that expressly prohibit the use of unpublished insider information.
Insider information is generally information that:
• relates to the Company and the Company’s securities;

• has not been made public;
• if it were made public, is likely to have a material effect on the price of the securities.
The Company has also adopted an Insider Trading Policy with the objective of promoting transparency and accountability by Directors,
employees and members of their families including spouses, children, parents and siblings (collectively referred to as “Insiders”). The
Company’s Insider Trading Policy prohibits Insiders from trading in the securities of the Company at any time they are in possession of
Insider Information. The policy also prescribes a Trading Window during which Insiders can trade in the securities of the Company subject to
notifying the Group Company Secretary. This trading window opens twenty-four (24) hours after the release of any material or price sensitive
information (including the interim and final financial results) and closes fourteen (14) calendar days later.

FRAUD AWARENESS AND WHISTLE BLOWING POLICY
The Company has a zero tolerance approach to fraud and corruption and has put in place both proactive and reactive measures to address
both. Employees are continuously sensitized on fraud awareness and their role in identifying, preventing and reporting fraudulent, corrupt
and unethical business conduct.
To encourage employee partnership in the fight against fraud and corruption, the Company has adopted a Whistle Blowing Policy that
aims to have an effective internal mechanism that enables employees to freely, voluntarily, in good faith and without fear of victimization
come forward and share any information they may have regarding any financial misconduct, misuse of Company resources, unethical or
dishonest behavior by co-workers (at all levels), service providers, suppliers or other stakeholders dealing with the Company. This policy is
available on the Company’s Website at www.jubileeinsurance.com. Towards this end and to facilitate reporting, the Company has signed
up for an external and internationally accredited whistle blowing facility which enables employees and other external stakeholders to make
reports via multiple reporting channels including telephone (toll-free or call back facility), email and web. This facility guarantees anonymity
and enhances the Company’s compliance with legislation on the protection of whistle blowers.
All reports are forwarded directly from the reporting center to the Group Chairman and Chairman of the Board Audit & Compliance
Committee for appropriate direction on action to be taken. All reported fraud is investigated, the concerned individual, given an opportunity
to be heard and appropriate action taken.
ENGAGEMENT WITH SHAREHOLDERS AND STAKEHOLDERS
The Company values its relationship with all shareholders and ensures timely communication with them through the channels prescribed
by law and listing regulations. The Company holds an Annual General Meeting (AGM) in every year and invites all shareholders to attend
either in person or by proxy. At the AGM, the shareholders are invited to comment or ask questions on the any issues tabled before the
meeting and thereafter are given an opportunity to vote on the agenda items presented. All resolutions passed at every AGM are published
within ten (10) days of the meeting and uploaded on the Company’s website. Any decisions of the Board that require to be notified to the
public such as approval of final and interim financial results, Board appointments and resignations and other corporate actions are issued
through public announcements at the same time to all shareholders within the prescribed timelines of twenty - four (24) hours from when the
decision is made.
The Company is keen to ensure that there are open channels of communication not only with shareholders but all stakeholders including
employees, policy holders, insurance intermediaries, service providers and the public in general. Towards this end, the Company has put
in place various communication channels including monthly townhall meetings for employees to interact with management and raise any
issues that may be of concern or proposals on employee welfare, periodic breakfast meetings with intermediaries on multilateral business
support and service issues and most recently the Company has launched a Live Twitter chat that enables the general public to engage with
senior management led by the Group CEO on the Company’s products, services any related issues.
Dispute Resolution:
Disputes are an inevitable part of life. In a business setting, disputes might arise from engagements with clients, service providers employees
and other stakeholders. The Company strives to mitigate the occurrence of disputes by ensuring all contractual engagements are documented
and that the obligations and rights of the Company and its contracting partners are clearly articulated. All Company contracts are vetted
by the Legal department and contain dispute resolution mechanisms which include escalation of disputes to identified senior individuals in
the Company, mitigation or arbitration. As a last resort, where disputes cannot be amicably resolved, disputes are referred to the Courts of
Law or relevant Tribunals, as may be appropriate, for resolution. Internally, any dispute relating to disciplinary action contemplated against
an employee follows strict adherence to employment law with regard to giving the employee a chance to be heard. An employee who is
aggrieved by a decision of the Company has, in the first instance, recourse to lodge an appeal against such decision with the Group Chief
Executive Officer.

Living free is...
building and securing
your family’s future
At Jubilee Insurance, we help families
plan for their future. Through the Jubilee
Insurance Career Life education plan,
investing an affordable amount each month
will ensure that parents can comfortably
cover the costs of their child’s education.
Our new J-Inue family cover means health
insurance is now accessible to low and
middle income families without the need for
a medical check-up. We want every family
to be safe, secure and to Live Free!

DIRECTORS’ REMUNERATION REPORT
The Directors’ Remuneration Report for the year ended 31 December 2018 is in line with the Companies Act, 2015 and the Code of
Corporate Governance Practices for Issuers of Securities to the Public 2015, issued by the Capital Markets Authority.
Director Remuneration Policy
The Board has established a policy to ensure that the remuneration of Directors is formal, transparent and approved by Shareholders in
a General Meeting. The Board has mandated the Board Nominating & Human Resource Committee (BNHRC) to, inter alia, review the
remuneration of Non-Executive Directors and recommend changes from time to time. In considering the remuneration of Non-Executive
Directors, the BNHRC considers amongst others, the business strategy and long-term objectives of the Company.
During the year under review, all Directors served on a Non-Executive basis. In recognition of their service to the Company, the Non-
Executive Directors are paid fees and sitting allowances for attending Board and Committee meetings. Both the fees and sitting allowances
are paid on a quarterly basis. The Non-Executive Directors are not covered by the Company’s incentive programs nor do they receive
performance-based remuneration. No pension contributions are payable on their fees and no Director is entitled to any compensation at the
end of their tenure as a member of the Board. The Company reimburses travel and accommodation expenses related to attendance at Board
and Committee meetings. During the year under review, no loans were advanced to the Directors.
The aggregate amount of emoluments received by the Directors during the year under review was KShs 3,420,000 (2017: KShs 3,745,000)
and is shown on page 68 under note 11 (iii).
The fees and sitting allowance paid to the each Director for the year ended 31 December 2018 together with the comparative figures for
2017 are given in the following table.
Sitting Expense
Year ended 31 December 2018 Directors’
Allowance Bonuses allowances Total
Fees
KShs. 000 KShs. 000 KShs. 000 KShs. 000 KShs. 000
Mr. Nizar Juma* - - - - -
Mr. Sultan Allana* - - - - -
Mr. Lutaf Kassam*** 540,000 120,000 - - 660,000
Mr. Juma Kisaame 540,000 180,000 - - 720,000
Mr. John Metcalf* - - - - -
Mr. Shabir Abji 540,000 100,000 - - 640,000
Mrs. Jane Mwangi 360,000 120,000 - - 480,000
Mr. Moez Jamal** 180,000 40,000 - - 220,000
Mr. Zul Abdul 540,000 160,000 - - 700,000
2,700,000 720,000 - - 3,420,000
* Waived
** Mr. Moez Jamal retired from the Board on 5 July 2018
*** Fees paid to his employer
Directors’ Sitting Expense

Year ended 31 December 2017
Fees Allowance Bonuses allowances Total
KShs. 000 KShs. 000 KShs. 000 KShs. 000 KShs. 000
Mr. Nizar Juma* - - - - -
Mr. Sultan Allana* - - - - -
Mr. Lutaf Kassam *** 540,000 120,000 - - 660,000
Mr. Juma Kisaame 540,000 140,000 - - 680,000
Mr. John Metcalf* - - - - -
Mr. Shabir Abji 540,000 180,000 - - 720,000
Mrs. Jane Mwangi 360,000 120,000 - - 480,000
Mr. Moez Jamal 360,000 160,000 - - 520,000
Mr. Zul Abdul 585,000 100,000 - - 685,000
2,925,000 820,000 - - 3,745,000
* Waived
*** Fees paid to his employer
By Order of the Board
Jane Mwangi
Chairperson of the BHRC

SUSTAINABILITY AND CORPORATE SOCIAL RESPONSIBILITY JOURNEY
At the core of Jubilee Holdings, is our belief of doing business in a manner that delivers economic, social, and environmental benefits to
all stakeholders. JHL engages in sustainable business practices and aligns its Corporate Social Responsibilities (CSR) with the Sustainable
Development Goals (SDGs) that pledge to Leave No-one Behind and community transformation through the mantra the “Society We Want”.
ENVIRONMENTAL PERFORMANCE
500
A TREE PLANTING
EXERCISE IN
PARTNERSHIP WITH THE
KENYA ORGANISATION TREE SEEDLINGS
OF ENVIRONMENTAL WITH ANOTHER
EDUCATION (KOEE)
2,000
SEEDLINGS
DISTRIBUTED
ANNUAL ENERGY CONSUMPTION AMONG THE
19
OF JUBILEE CENTRE DECLINED BY
5% IN 2018
784,163kWh PARTICIPATING
SCHOOLS
ECONOMIC DEVELOPMENT
TOTAL STAFF COUNT

YOUTH EMPLOYMENT
76% 1,209
BELOW
40 YEARS 50.3%
ARE WOMEN
CUTTING EDGE INNOVATIONS OVER
JubiCare App users increased

6,700
164% in 2018 INTERMEDIARIES:
AGENTS, SUPPLIERS,
LAWYERS, DOCTORS,
GARAGES, ASSESSORS,
Dial*643# to get Msafiri SURVEYORS
Policy, enroll in the Jubilee
68%
Insurance Mum’s Club and
access the JubiCare App
NUMBER OF LIVES
INSURED ARE OVER
967 Agents enrolled on the BEING LONG
Commission on Demand in 2018 1.9Million TERM CLIENTS

SUSTAINABILITY AND CORPORATE SOCIAL RESPONSIBILITY JOURNEY (Continued)
SOCIAL RESPONSIBILITY
Jubilee Insurance remains a proactive and responsible corporate citizen committed to improving the lives of our local communities and
participates in several CSR initiatives guided by our pillars.
LIVE FREE PAINTING COMPETITION

EDUCATION
The Live Free Painting project nurtures and encourages children to express
their creativity through artwork. So far it has awarded 33 students with
full Secondary school education scholarships who also continue to receive
mentorship. In addition to the above, 7 public schools in Tanzania have
been renovated under the School Renovation project.
CANCER AWARENESS AND SUPPORT

During the Cancer Awareness month, Jubilee staff in Kenya and Uganda
engaged in the Cancer awareness campaign to carry out sensitization,
screening, provide support and educate the affected/survivors.
BEYOND ZERO CAMPAIGN

Jubilee Insurance through the “Maisha Fiti” wellness program donated
Kshs. 3M for mobilization of medical resources and provision of GPA
covers for the over 27,000 participants, officials and volunteers during
the Marathon. The initiative is in line with our core business agenda to
increase access to and uptake of health insurance.
HEALTH
EAR CAMPS - “BREAKING THE SILENCE”

In collaboration with Operation Ear drop, we facilitated ear surgery
camps in Nanyuki, Machakos, Kisumu and Nairobi counties. A total of
122 beneficiaries have undergone ear surgery since 2017.
EYE PROJECT - “FREEDOM TO FOCUS”

In partnership with Kenya Society for the Blind, the Eye project has
since its inception in 2017 provided eye treatment to more than 1,500
beneficiaries and provided spectacles to more than 250 public primary
pupils.
MAASAI WILDERNESS CONSERVATION TRUST (MWCT)

Over the next 5 years KShs. 15 million will be committed to the Maasai
Wilderness Conservation Trust in Kajiado to support their efforts in
conservation of Tsavo West, offering university bursaries to bright
SOCIAL ACTION
needy students from the community and providing health services to the
community.
KIDS OF AFRICA MARATHON UGANDA

Our Uganda Team joined the Kids of Africa, in a fun run by sponsoring
the marathon to the tune of Ugsh. 10 million. The funds will go towards
the construction of modern sanitation facilities for the kids in public
schools in Bugiri Village, Kisubi Ward, Katabi Town Council and Wakiso
District.

PRINCIPAL SHAREHOLDERS AND SHARE DISTRIBUTION
Directors’ interest in the shares of the company as at 31 December 2018
Name Number of shares held % Shareholding

Mr Nizar Juma 9,446 0.01%
Distribution of Shareholders as at 31 December 2018
Number of shares Number of shareholders Number of shares held % Shareholding

Less than 500 shares 1,842 265,842 0.37%
500 - 5,000 shares 3,172 6,428,287 8.87%
5,001 - 10,000 shares 742 5,120,517 7.07%
10,001 - 100,000 shares 560 14,021,059 19.35%
100,001 - 1,000,000 shares 36 7,501,340 10.35%
Over 1,000,000 shares 5 39,135,905 54.00%
Total 6,357 72,472,950 100.00%
List of 10 largest shareholders as at 31 December 2018
Names Number of shares held % Shareholding

1 Aga Khan Fund for Economic Development 27,528,739 37.98%
2 Pyrus Investments Limited 7,483,980 10.33%
3 Freight Forwarders Limited 1,513,409 2.09%
4 United Housing Estates Limited 1,314,947 1.81%
5 Adam’s Brown and Company Limited 1,294,830 1.79%
6 Standard Chartered Kenya Nominees Limited A/c KE18972 904,754 1.25%
7 Investments & Mortgages Nominees Limited A/c 002983 800,000 1.10%
8 Gulshan Noorali Sayani 362,507 0.50%
9 Co-op Bank Custody A/c 23000 260,300 0.36%
10 Gulzar Shamshudeen Somji 250,151 0.35%
TOTAL 41,713,617 57.56%

Living free is...
finding time for you
At Jubilee Insurance we understand that our
customers’ needs continuously evolve.
We have therefore invested heavily in
technology to ensure our clients can now
manage their policies wherever they are using
state-of-the-art mobile apps and shortcode
services. This includes the ability to locate
health providers and book appointments,
replace lost medical cards, view policy
coverage and utilization and request pre-
authorization. By spending less time on
paperwork, you have more time for you.

REPORT OF THE DIRECTORS
The Directors submit their report together with the audited consolidated financial statements for the year ended 31 December 2018 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.
DIRECTORATE
The directors who held office during the year and to the date of this report are as below;
Nizar N Juma (Chairman)

Sultan A Allana *
Juma Kisaame***
Lutaf R Kassam
John J Metcalf ****
Shabir Abji**
Jane S Mwangi
Moez Jamal **** (resigned 5th July 2018)
Zul Abdul
Ashif Kassam (appointed 28th March 2019)
* Pakistani ** Tanzanian ***Ugandan **** British
PRINCIPAL ACTIVITIES
The Company is an investments holding company. The Company, through its subsidiaries, provides a wide range of property, liability, health
and life insurance, and retirement products, and related services to customers in Kenya, Uganda, Tanzania, Burundi and Mauritius. It also
owns investment companies in Kenya, Uganda, Tanzania and Burundi.
DIVIDEND
An interim dividend of KShs 1.00 per share amounting to KShs 72.473 million (2017: KShs 72.473 million) was paid on 5 October 2018.
The Directors recommend a final dividend of KShs 8.00 per share amounting to KShs 579.784 million (2017: KShs 579.784 million. The
total dividend for the year represents 180% of the issued share capital as at 31 December 2018 (2017: 180%).
BUSINESS REVIEW
The following is the summary of the results for the year ended 31 December 2018
2018 2017
Profit analysis KShs’000 KShs’000
Group profit before income tax 5,410,008 5,160,970
Income tax expense (1,233,057) (930,660)
Group profit after income tax 4,176,951 4,230,310
Non-controlling interest (370,501) (298,168)
Profit attributable to equityholders of the company 3,806,450 3,932,142
Additional details of the business overview are captured in the Chairman’s Statement on pages 9 to 11.
Risk Management
The Group has developed an Enterprise Risk Management (ERM) framework to realize opportunities, while reducing threats to an acceptable
level through the implementation of adequate controls. Through the ERM process decision makers, better understand business situations and
how the likely outcomes may affect the Group as a whole, enabling them options that are aligned with the Group’s risk appetite or options
that can be aligned through implementation of effective controls.
Each entity within the Group has risk champions whose mandate is to spearhead the implementation of risk management and reporting on
risks. There also exist structures for reporting the risk so that the Group’s Board is given assurance that risks are being defined and managed
at acceptable levels.

REPORT OF THE DIRECTORS (CONTINUED)
STATEMENT AS TO DISCLOSURE TO THE COMPANY’S AUDITORS
With respect to each director at the time this report was approved:
• there is, so far as each director is aware, no relevant audit information of which the Company’s auditor is unaware; and
• each director had taken all steps that ought to have been taken as a director so as to be aware of any relevant audit information and
to establish that the Company’s auditor is aware of that information.
Terms of Appointment of Auditors
PricewaterhouseCoopers continue in office in accordance with the Company’s Articles of Association and Section 721 of the Kenyan
Companies Act, 2015.
The directors monitor the effectiveness, objectivity and independence of the auditor. This responsibility includes the approval of the audit
engagement contract and the associated fees on behalf of the shareholders.
By order of the Board
Nizar Juma
Chairman
29 April 2019

STATEMENT OF DIRECTORS’ RESPONSIBILITIES
The Kenyan Companies Act, 2015 requires the directors to prepare financial statements for each financial year that give a true and fair view
of the financial position of the Group and Company as at the end of the financial year and of its profit or loss for that year. It also requires
the directors to ensure the Company and Group keep proper accounting records that: a) show and explain the transactions of the Group and
Company; b) disclose, with reasonable accuracy, the financial position of the Group and Company; and c) enable the directors to ensure
that every financial statement required to be prepared complies with the requirements of the Companies Act, 2015.
The directors accept responsibility for the preparation and presentation of these financial statements in accordance with International
Financial Reporting Standards and in the manner required by the Kenyan Companies Act, 2015. They also accept responsibility for:
• Designing, implementing and maintaining internal control as they determine necessary to enable the preparation of financial statements
that are free from material misstatements, whether due to fraud or error;
• selecting suitable accounting policies and then apply them consistently; and
• Making judgements and accounting estimates that are reasonable in the circumstances
Having made an assessment of the Group’s and Company’s ability to continue as a going concern, the directors are not aware of any
material uncertainties related to events or conditions that may cast doubt upon the Group’s and Company’s ability to continue as a going
concern.
The directors acknowledge that the independent audit of the financial statements does not relieve them of their responsibility.
Approved by the Board of Directors on 29 April 2019 and signed on its behalf by:
Nizar Juma Zul Abdul

Chairman Director

INDEPENDENT AUDITOR’S REPORT TO THE SHAREHOLDERS
OF JUBILEE HOLDINGS LIMITED
Report on the audit of the financial statements
Opinion
We have audited the accompanying financial statements of Jubilee Holdings Limited (the Company) and its subsidiaries (together, the Group)
set out on pages 40 to 119, which comprise the consolidated statement of financial position at 31 December 2018 and the consolidated
statement of profit or loss, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated
statement of cash flows for the year then ended, together with the Company statement of financial position at 31 December 2018, statement
of profit or loss and statement of other comprehensive income, the statement of changes in equity and statement of cash flows for the
Company for the year then ended, and the notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements of Jubilee Holdings Limited give a true and fair view of the financial position of the
Group and Company at 31 December 2018 and of their financial performance and cash flows for the year then ended in accordance with
International Financial Reporting Standards and the requirements of the Kenyan Companies Act, 2015.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are
further described in the Auditor’s responsibilities for the audit of the financial statements section of our report.
We are independent of the company in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for
Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the financial statements in
Kenya, and we have fulfilled our ethical responsibilities in accordance with these requirements and the IESBA Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial
statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole,
and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter How our audit addressed the matter
Valuation of insurance contract liabilities Our testing approach included amongst others, the following
procedures with the assistance of our actuarial specialists;
Valuation of policyholder liabilities as disclosed in note 26 to the
financial statements is made up of outstanding claims, incurred but • Assessing the competency, capabilities and objectivity of the
not reported (“IBNR”) in the short term business and policy holder Group’s Statutory Actuary and verifying their qualifications.
liabilities under the long-term business.
• Evaluating and testing the controls around the claim reserving
Significant reserving assumptions as disclosed in Notes 3 and 26 of and settlement.
are made in the determination of the liabilities.
• Evaluating the controls performed by management to ensure
In the short-term business, for outstanding claims not settled at the the accuracy and completeness of the policyholder data.
reporting date, the liability is estimated using the best available
information from loss event and insured value. • Validating the accuracy of the data used by the Statutory
actuary by tracing the policyholder valuation input data, such
The IBNR provision is determined annually by the Group’s consulting as premiums, claims and expense data used in the valuation
actuaries who provide an estimate for the valuation based on model to back information contained in the administration and
analysis of historical claims development factors with the assumption accounting systems.
that future claims development will follow a similar pattern to past
claims development experience.
PricewaterhouseCoopers CPA. PwC Tower, Waiyaki Way/Chiromo Road, Westlands

P O Box 43963 - 00100 Nairobi, Kenya
T: +254 (20)285 5000 F: +254 (20)285 5001 www.pwc.com/ke
Partners: E Kerich B Kimacia M Mugasa A Murage F Muriu P Ngahu R Njoroge S O Norbert’s B Okundi K Saiti

OF JUBILEE HOLDINGS LIMITED (CONTINUED)
Key audit matters (continued)
Key audit matter How our audit addressed the matter
Valuation of insurance contract liabilities (continued)
In the case of the long-term business, the Group’s valuation of • On a sample basis, tracing the policyholder information used
liabilities involves the selection of appropriate assumptions to in the valuation model back to information contained in the
valuation of the liability key assumptions include mortality, morbidity, administration and accounting systems.
lapses and interest rates.
• Evaluating the ongoing validity of the assumptions by
The valuation of insurance contract liabilities was considered a key performing an actual versus expected analysis on prior year’s
audit matter as a change in the assumptions used in the valuation reserves.
would have a material impact on the value of the liabilities.
• Considering the methodology and assumptions used by the
appointed actuary to compute the policy holder liabilities
and assessing the valuation methods used against generally
accepted actuarial practice and entity-specific historical
information
• Checking that the policyholder liabilities reported in the

financial statements were consistent with the results of the
independent actuarial valuation.
Other information
The other information comprises the Integrated Report which we obtained prior to the date of the date of this auditor’s report but does not
include the financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the
financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so,
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated. If, based on the work we have performed on the other information, we conclude that there is
a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial statements
The directors are responsible for the preparation of financial statements that give a true and fair view in accordance with International
Financial Reporting Standards and the requirements of the Kenyan Companies Act, 2015, and for such internal control as the directors
determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, the directors are responsible for assessing the Group’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend
to liquidate the Group or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these financial statements.

OF JUBILEE HOLDINGS LIMITED (CONTINUED)
Auditors’ responsibility for the audit of the financial statements (continued)
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit.
We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made
by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Groups’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report
to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group
to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group
to express an opinion on the Group’s financial statements. We are responsible for the direction, supervision and performance of the
Group audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and
to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where
applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the Group’s
financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless
law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
Report on other matters prescribed by the Kenyan Companies Act, 2015
Report of the directors
In our opinion the information given in the directors’ report on pages 32 to 33 is consistent with the financial statements.
Directors’ remuneration report
In our opinion the auditable part of the directors’ remuneration report on page 26 has been properly prepared in accordance with the
Kenyan Companies Act, 2015.

Certified Public Accountants
Nairobi 30 April 2019
CPA Bernice Kimacia, Practising certificate No. 1457

Signing partner responsible for the independent audit

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CONSOLIDATED STATEMENT OF PROFIT OR LOSS
FOR THE YEAR ENDED 31 DECEMBER 2018
2018 2017
Note KShs ‘000 KShs ‘000
Gross Written Premium 26,898,470 26,940,991
Gross earned premium revenue 6 26,706,654 28,328,848

Reinsurance ceded 6 (9,385,170) (9,134,984)
Net insurance premium revenue 17,321,484 19,193,864
Investment and other income 7 8,720,734 7,575,360

Net fair value (loss)/gain on financial assets at fair value through profit or loss 8 (374,945) 2,700,471
Commission income 9 2,344,571 1,803,453
Total income less reinsurance 28,011,844 31,273,148
Claims and policy holders benefits expense 10 (20,693,302) (25,127,276)

Claims recoverable from re-insurers 10 4,763,392 5,473,380
Net insurance benefits and claims (15,929,910) (19,653,896)
Operating and other expenses 11 (i) (4,682,646) (4,240,091)

Commission expense 9 (3,328,793) (3,400,893)
Total expenses and commissions (8,011,439) (7,640,984)
Result of operating activities 4,070,495 3,978,268
Share of associates profit 15 (i) 1,339,513 1,182,702

Group profit before income tax 5,410,008 5,160,970
Income tax expense 16 (i) (1,233,057) (930,660)
Profit for the year 4,176,951 4,230,310
Attributable to:
Equityholders of the company 3,806,450 3,932,142
Non-controlling interest 15 (iii) 370,501 298,168
Total 4,176,951 4,230,310
Earnings Per Share (KShs)
Basic and diluted 12 52.52 54.26
The notes on pages 48 to 119 are an integral part of these financial statements.
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME

2018 2017
Profit for the year 4,176,951 4,230,310
Other comprehensive income
Items that will not be reclassified to profit or loss

Net fair value (loss)/gain on financial assets 8(ii) (344,374) 292,898
Deferred tax on other comprehensive income 16 76,425 (87,589)
Loss on valuation of Retirement Benefits (34) 186
Items that are or/may be reclassified subsequently to profit or loss
Net translation loss 31 (c) & 15 (iii) (493,426) (468)
Associate share of other comprehensive income 15 (i) 195,071 47,219
Total other comprehensive income, net of tax (566,338) 252,246
Total comprehensive income for the year 3,610,613 4,482,556
Attributable to:
Equityholders of the Company 3,336,160 4,172,850
Non-controlling interest 15 (iii) 274,453 309,706
Total comprehensive income for the year 3,610,613 4,482,556

COMPANY STATEMENT OF PROFIT OR LOSS
2018 2017
Income
Investment and other income 7 1,280,871 916,600
Total income 1,280,871 916,600

Expenses
Operating and other expenses 11 (i) (47,309) 1,255
Total expenses (47,309) 1,255

Finance costs 72 (2,849)
Profit before income tax 1,233,634 915,006
Income tax expense 16 (i) (14,075) (3,687)
Profit for the year 1,219,559 911,319
COMPANY STATEMENT OF OTHER COMPREHENSIVE INCOME

2018 2017
Profit for the year 1,219,559 911,319
Items that will not be reclassified to profit or loss
Net fair value gains on financial assets at fair value through other
comprehensive income 8(ii) 6,804 35,014
Deferred tax on other comprehensive income 16 (iii) (1,752) (10,504)
Total other comprehensive income, net of tax 5,052 24,510
Total comprehensive income for the year 1,224,611 935,829

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2018
2018 2017
ASSETS
Property and equipment 13 (i) 318,021 281,187
Intangible assets 13 (ii) 148,560 158,341
Investment properties 14 6,394,015 6,270,940
Investment in associates 15 (i) 9,995,813 9,579,327
Deferred tax asset 16 (iii) 218,099 191,273
Unquoted equity investments at fair value through profit or loss 17 4,344,211 3,157,632
Unquoted equity investments at fair value through other comprehensive income 17 194,613 200,371
Government securities at armortised cost 18 44,975,816 47,195,222
Government securities at fair value through profit or loss 18 10,264,809 -
Commercial bonds at amortised cost 19 (i) 802,939 904,007
Commercial bonds at fair value through profit or loss 19 (ii) 38,460 -
Mortgage loans 20 (i) 66,101 109,098
Loans on life insurance policies 20 (ii) 931,713 788,958
Quoted equity investments at fair value through profit or loss 21 4,945,579 6,853,603
Quoted equity investments at fair value through other comprehensive income 21 1,617,728 1,276,692
Receivables arising out of direct insurance arrangements 22 4,052,902 4,204,795
Receivables arising out of reinsurance arrangements 22 3,193,166 3,071,800
Reinsurers’ share of insurance contract liabilities 23 (i) 6,004,434 7,250,563
Deferred acquisition costs 23 (ii) 186,290 147,132
Other receivables 24 1,396,233 1,080,642
Current income tax asset 16 (ii) 174,269 142,478
Deposits with financial institutions 25 (i) 11,315,417 10,585,597
Cash and bank balances 25 (ii) 2,588,451 1,517,872
Total assets 114,167,639 104,967,530
LIABILITIES
Deferred tax liability 16 (iii) 89,841 199,550
Insurance contract liabilities 26 25,539,077 24,983,504
Payable under deposit administration contracts 27 47,739,002 42,214,336
Unearned premium revenue 28 7,625,596 7,571,212
Dividends payable 33 (ii) 431,293 369,176
Other payables 29 2,539,644 1,995,468
Current income tax liability 16 (ii) 104,455 70,983
Creditors arising out of direct insurance arrangements 201,501 325,730
Creditors arising out of reinsurance arrangements 1,825,863 2,006,921
Total liabilities 86,096,272 79,736,880
EQUITY
Share capital 30 362,365 362,365
Reserves 31 4,172,826 3,096,997
Retained earnings 32 21,649,197 20,092,764
Equity attributable to owners of the company 26,184,388 23,552,126
Non-controlling interest 15 (iii) 1,886,979 1,678,524
Total equity 28,071,367 25,230,650
Total liabilities and equity 114,167,639 104,967,530
The financial statements on pages 40 to 119 were approved by the Board of Directors on 29 April 2019 and signed on its behalf by:
Nizar N Juma Zul Abdul

Chairman Director

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2018
2018 2017
ASSETS
Property and equipment 13 (i) 13,731 17,281
Investment in associates 15 (i) 838,251 838,251
Investment in subsidiaries 15 (ii) 1,874,573 1,874,573
Unquoted equity investments at fair value through other comprehensive income 17 69,299 65,630
Quoted equity investments at fair value through other comprehensive income 21 23,405 20,270
Current income tax asset 16 (ii) - 7,661
Due from related parties 35 97,184 105,587
Other receivables 24 134,517 109,916
Deposits with financial institutions 25 (i) 919,427 250,098
Cash and bank balances 25 (i) 89,292 22,898
Total assets 4,059,679 3,312,165
LIABILITIES
Deferred tax liability 16 (iii) 7,617 6,034
Current income tax liability 16 (ii) 616 -
Due to related parties 35 267,335 158,805
Dividends payable 33 (ii) 431,294 369,176
Other payables 29 21,806 12,985
Borrowings from related parties 35 623,807 630,315
Total liabilities 1,352,475 1,177,315
EQUITY
Share capital 30 362,365 362,365
Reserves 31 106,409 101,357
Retained earnings 32 2,238,430 1,671,128
Total equity 2,707,204 2,134,850
Total liabilities and equity 4,059,679 3,312,165
The financial statements on pages 40 to 119 were approved by the Board of Directors on 29 April 2019 and signed on its behalf by:
Nizar N Juma Zul Abdul

Chairman Director
The notes on pages 48 to 119 are an integral part of these financial statement

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2018
Reserves
Equity Non-
Fair Value General Translation Contingency Statutory Retained Attributable to Controlling
Share Capital Reserves Reserves Reserves Reserves Reserve Earnings Owners Interest Total Equity
KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000
Year ended 31 December 2017 Note
At start of year 329,423 104,458 70,000 (554,086) 964,042 2,185,073 16,846,972 19,945,882 1,475,787 21,421,669
Profit for the year - - - - - - 3,932,142 3,932,142 298,168 4,230,310
Net translation loss 31 (c) & 15 (iii) - - - 7,266 - - - 7,266 (7,734) (468)
Other comprehensive income - 233,293 - - - - 149 233,442 19,272 252,714
Total comprehensive income for the year - 233,293 - 7,266 - - 3,932,291 4,172,850 309,706 4,482,556
Transfers
Transfer to contingency reserves 31 (d) - - - - 86,951 - (86,951) - - -
Total transfers - - - - 86,951 - (86,951) - - -
Transactions with owners:
Bonus issue 32,942 - - - - - (32,942) - - -
Dividends: Final for 2016 paid 33 (ii) - - - - - - (494,133) (494,133) - (494,133)
Paid to Non Controlling Interest 15 (iii) - - - - - - - - (106,969) (106,969)
Interim for 2017 paid 33 (i) - - - - - - (72,473) (72,473) - (72,473)
Total transactions with owners 32,942 - - - - - (599,548) (566,606) (106,969) (673,575)
At end of year 362,365 337,751 70,000 (546,820) 1,050,993 2,185,073 20,092,764 23,552,126 1,678,524 25,230,650
At start of year 362,365 337,751 70,000 (546,820) 1,050,993 2,185,073 20,092,764 23,552,126 1,678,524 25,230,650
IFRS 9 initial adoption - - - - - 35,765 (87,406) (51,641) - (51,641)
Profit for the year - - - - - - 3,806,450 3,806,450 370,501 4,176,951
Net translation loss 31 (c) & 15 (iii) - - - (396,904) - - - (396,904) (96,522) (493,426)
Other comprehensive income - (92,955) - - - - 19,569 (73,386) 474 (72,912)
Total comprehensive income for the year - (92,955) - (396,904) - - 3,826,019 3,336,160 274,453 3,610,613
Transfers
Transfer to retained earnings on reclassification 32 - (29,829) - - - - 29,829 - - -
Transfer to contingency reserves 31 (d) - - - - 182,284 - (182,284) - - -
Transfer to Statutory reserves - - - - 1,377,468 (1,377,468) - - -
Total transfers - (29,829) - - 182,284 1,377,468 (1,529,923) - - -
Dividends: Final for 2017 paid 33 (ii) - - - - - - (579,784) (579,784) - (579,784)
Paid to non-controlling interest 15 (iii) - - - - - - - - (65,998) (65,998)
Interim for 2018 paid 33 (i) - - - - - - (72,473) (72,473) - (72,473)
Total transactions with owners - - - - - - (652,257) (652,257) (65,998) (718,255)
At end of year 362,365 214,967 70,000 (943,724) 1,233,277 3,598,306 21,649,197 26,184,388 1,886,979 28,071,367

COMPANY STATEMENT OF CHANGES IN EQUITY
Reserves
Share Fair Value General Retained
Capital Reserves Reserves Earnings Total Equity
KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000
Year ended 31 December 2017 Note
At start of year 329,423 6,847 70,000 1,359,357 1,765,627
Profit for the year - - - 911,319 911,319

Other comprehensive Income 31 (i) - 24,510 - - 24,510
Total comprehensive income for the year - 24,510 - 911,319 935,829
Bonus issue 32,942 - - (32,942) -
Dividends: Final for 2016 paid 33 (ii) - - - (494,133) (494,133)
Interim for 2017 paid 33 (i) & (ii) - - - (72,473) (72,473)
Total transactions with owners 32,942 - - (599,548) (566,606)
At end of year 362,365 31,357 70,000 1,671,128 2,134,850
At start of year 362,365 31,357 70,000 1,671,128 2,134,850
Profit for the year - - - 1,219,559 1,219,559

Other comprehensive Income 31 (a) - 5,052 - - 5,052
Total comprehensive income for the year - 5,052 - 1,219,559 1,224,611
Dividends: Final for 2017 paid 33 (ii) - - - (579,784) (579,784)
Interim for 2018 paid 33 (i) & (ii) - - - (72,473) (72,473)
Total transactions with owners - - - (652,257) (652,257)
At end of year 362,365 36,409 70,000 2,238,430 2,707,204
The notes on pages 48 to 119 are an integral part of these financial statement.

CONSOLIDATED STATEMENT OF CASH FLOWS
2018 2017
Cash flow from operating activities
Cash generated from operations 25 (iii) 3,315,610 5,056,388
Income tax paid 16 (ii) (1,305,646) (1,041,320)
Net cash inflow from operating activities 2,009,964 4,015,068
Cash flow from investing activities

Rent, interest and dividend received 8,069,615 6,884,867
Dividends received from associates 15 (i) 421,805 338,091
Proceeds from sale of quoted shares 178,545 113,438
Proceeds from disposal of property and equipment 151 412
Proceeds from part redemptions of shares in associate 15 (i) 581,211 580,554
Purchase of property and equipment and intangible assets 13 (200,632) (203,956)
Net additions of investment properties 14 (19,546) (28,341)
Purchase of quoted equity investments 21 (182,973) (106,810)
Purchase of unquoted equity investments 17 (305,790) -
Mortgage loans advanced 20 (i) (26,672) (83,175)
Mortgage loans repaid 20 (i) 68,540 52,731
Loans on life insurance policies advanced 20 (ii) (231,139) (218,670)
Loans on life insurance policies repaid 20 (ii) 86,169 146,003
Net purchase of government securities 18 (7,401,200) (4,980,609)
Net proceeds of commercial bonds 19 60,389 519,671
Net cash inflow from investing activities 1,098,473 3,014,206
Cash flow from financing activities

Dividends paid (652,257) (566,606)
Net cash outflow from financing activities (652,257) (566,606)
Increase in cash and cash equivalents 2,456,180 6,462,668

Cash and cash equivalents at start of the year 25 (ii) 14,796,784 8,326,849
Exchange (loss)/gain on translation of cash and cash equivalents 31 (c) (64,995) 7,267
Cash and cash equivalents at the end of year 25 (ii) 17,187,969 14,796,784

COMPANY STATEMENT OF CASH FLOWS
2018 2017
Profit before income tax 1,233,634 915,006
Adjustments for: -
Depreciation 13 (i) 3,620 6,146
Write off of unquoted shares 17 - 128
Investment income 7 (1,280,943) (916,600)
Operating loss before changes to receivables and payables (43,689) 4,680
Change in receivables (16,197) (75,845)

Change in payables 172,960 (1,618)
Cash generated from operations 113,074 (72,783)
Income tax paid 16 (5,968) (1,585)
Net cash inflow/(outflow) from operating activities 107,106 (74,368)
Cash flow from investing activities

Rent, interest and dividend received 7 1,108,401 13,450
Dividends received from associates 7 172,470 108,705
Dividends received from subsidary 7 - 798,100
Purchase of property and equipment and intangible assets 13 (i) (70) (597)
Purchase of quoted equity investments 21 - (11,541)

Additional investment in subsidiary 15 (ii) - (23,683)
Net cash inflow from investing activities 1,280,801 884,434
Cash flow from financing activities

Dividends paid (652,256) (566,606)
Net cash outflow from financing activities (652,256) (566,606)
Increase in cash and cash equivalents 735,651 243,460

Cash and cash equivalents at start of year 272,996 33,189
Exchange gain/(loss) on translation of cash and cash equivalents 7 72 (3,653)
Cash and cash equivalents at end of year 1,008,719 272,996

NOTES TO THE 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. All these products are offered to both domestic
and foreign markets. It has operations in Kenya, Uganda, Tanzania, Burundi and Mauritius and employs over 1,209 (2017: 1,017) people
through its subsidiaries.
The insurance business of the Group is organized into three main divisions, short-term (general) business and long-term (life) business and
investment. Long-term business relates to the underwriting of life risks relating to insured persons, the issue of investment contracts and the
administration of pension funds. Short-term business relates to underwriting of property, health and liability insurance business.
With a view to diversifying the Group’s income base, the Group has invested in associate companies whose operational activities have been
extended to include property development and management, power generation and international fibre optic broadband cable connectivity.
Within these financial statements and the notes to the financial statements the words “consolidated” and “Group” have been used inter-
changeably to mean the Company and its subsidiaries.
For purposes of the Kenya Companies Act, 2015 reporting purposes, the balance sheet is represented by statement of financial position
while the profit and loss account is represented by the statements of profit or loss and other comprehensive income.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of these financial statements are set out in Note 38. These policies have been
consistently applied to all years presented, unless otherwise stated.
3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS IN APPLYING ACCOUNTING POLICIES
The Group makes estimates and assumptions that affect the reported amounts of assets and liabilities within the next financial year. Estimates
and judgments are continually evaluated and based on historical experience and other factors, including expectations of future events that
are believed to be reasonable under the circumstances. Set out below are the areas are the areas that are most dependent on the application
of estimates and assumptions:
a) Insurance contract liabilities
(i) Short-term business
Management applies judgment in the estimation of short-term insurance contract liabilities. The Group uses historical experience to estimate
the ultimate cost of claims and the provision for incurred but not reported (IBNR) claims. This involves the analysis of historical claims
development factors and the selection of estimated development factors based on this historical pattern. The selected development factors are
then applied to claims data for each accident year that is not fully developed to produce an estimated ultimate claims cost for each accident
year. The nature of claims is generally high frequency with short reporting periods. The Group estimates claims using projected ultimate loss
ratios based on notified claims.
(ii) Long-term business
The determination of the liabilities under long term insurance contracts is dependent on estimates made by the Group. Assumptions used to
compute the liabilities include mortality, persistency and investment returns. The assumptions used also include margin for adverse deviation,
for key variables, when considered appropriate. The Group uses standard mortality tables that reflect historical mortality experience.
The main source of uncertainty is that future mortality may end up being significantly worse than in the past for the age groups in which
the Group has significant exposure to mortality risk. However, continuing improvements in medical care and social conditions could result
in improvements in longevity in excess of those allowed for in the estimates used to determine the liability for contracts where the Group is
exposed to longevity risk. For contracts without fixed terms, it is assumed that the Group will be able to increase mortality risk charges in
future years in line with emerging mortality experience.
Estimates are also made as to future investment income arising from the assets backing long-term insurance contracts. These estimates are
based on current market returns as well as expectations about future economic and financial developments.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS IN APPLYING ACCOUNTING POLICIES (CONTINUED)
b) Income tax
The Group is subject to income taxes in various jurisdictions. There are many transactions and calculations for which the ultimate tax
determination is uncertain during the ordinary course of business. The Group recognises liabilities for anticipated tax audit issues based
on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were
initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.
c) Valuation of unquoted equity investments
The Group estimates the value of unquoted equity investments using techniques that include the use of observable inputs. Changes in these
estimates could result in material changes in the fair value of the investment. See further disclosures in Note 17.
d) Receivables
Critical estimates are made in determining the recoverable amount of impaired receivables. The process is set out in Note 38.10. The
carrying amount of the receivables are shown on Note 22.
e) Valuation of investment property
Investment property comprises leasehold land and buildings and is measured at fair value. Fair value is based on valuations performed
every year by an independent valuation expert. In performing the valuation, the valuer obtains the market value of similar properties and
compares with the carrying value of the investment property. Given that the valuer uses actual sales data obtained from the market in
performing the valuation, any changes in the market interest rates or rental income would not result in any significant change in the carrying
value of investment property.
4. MANAGEMENT OF INSURANCE AND FINANCIAL RISK
This section summarises the way the Group manages key risks:
(i) Insurance risk
The Group uses underwriting guidelines and standards to carefully select risks and maximize underwriting returns. The risk under any one
insurance contract is the possibility that the insured event occurs and the uncertainty of the amount of the resulting claim. By the very nature
of an insurance contract, this risk is random and therefore unpredictable. Experience shows that the larger the portfolio of similar insurance
contracts, the smaller the relative variability about the expected outcome will be. In addition, a more diversified portfolio is less likely to
be affected across the board by a change in any subset of the portfolio. The Group has developed its insurance underwriting strategy to
diversify the type of insurance risks accepted and within each of these categories to achieve a sufficiently large population of risks to reduce
the variability of the expected outcome. With assistance from the Group’s actuarial experts, pricing of insurance contracts is regularly
reviewed in line with experience.
Factors that aggravate insurance risk include lack of risk diversification in terms of type and amount of risk, geographical location and type
of industry covered.

4. MANAGEMENT OF INSURANCE AND FINANCIAL RISK (CONTINUED)
(i) Insurance risk (continued)
The following tables illustrate the Group’s concentration of insurance risk. The tables disclose the range of individual insured risk (sums
assured) for the principle classes of business underwritten by the Group.
Insurance Risk GROUP

Year ended 31 December 2018 Maximum insured loss
Class of business
KShs 0 m - KShs 15m - KShs 250m - KShs
Short-term business
KShs 15m KShs 250m KShs 1000m 1000m + Total
KShs’000 KShs’000 KShs’000 KShs’000 KShs’000
Gross 71,696,952 11,605,039 1,369,349 872,082 85,543,422
Motor
Net 42,465,336 10,937,456 878,000 5,809 54,286,601
Gross 22,896,028 103,979,788 99,350,968 486,541,293 712,768,077
Fire
Net 13,017,000 86,460,079 34,936,155 23,240,354 157,653,588
Gross 3,043,729 33,603,792 9,161,000 2,361,717 48,170,238
Personal accident
Net 2,331,968 28,836,545 8,912,540 1,050,617 41,131,670
Gross 29,515,769 148,500,123 54,967,937 98,257,015 331,240,844
Medical
Net 19,700,965 82,643,464 51,250,385 67,948,000 221,542,814
Gross 53,148,699 122,547,452 80,708,163 534,012,426 790,416,740
Other
Net 21,442,771 82,075,989 46,609,253 190,155,167 340,283,180
Long-term business
Gross 28,986,090 3,564,142 38,747 - 32,588,979
Ordinary life
Net 26,581,430 2,952,434 - - 29,533,864
Gross 1,105,642,601 648,891,719 51,397,414 10,960,710 1,816,892,444
Group life
Net 652,297,190 226,352,786 22,050,868 6,777,373 907,478,217
Gross 3,813,877 1,361,790 - - 5,175,667
Annuity
Net 3,813,877 1,516,377 - - 5,330,254
Gross 1,318,743,745 1,074,053,845 296,993,578 1,133,005,243 3,822,796,411
Total
Net 781,650,537 521,775,130 164,637,201 289,177,320 1,757,240,188
Year ended 31 December 2017 Maximum insured loss

Class of business
KShs 0 m - KShs 15m - KShs 250m - KShs
Short-term business
KShs 15m KShs 250m KShs 1000m 1000m + Total
KShs’000 KShs’000 KShs’000 KShs’000 KShs’000
Gross 66,949,365 11,409,947 2,454,553 878,395 81,692,260
Motor
Net 36,714,015 10,499,199 1,919,796 6,015 49,139,025
Gross 24,489,849 107,377,330 100,477,110 319,973,471 552,317,760
Fire
Net 14,270,286 98,707,603 93,918,378 184,462,539 391,358,806
Gross 2,942,644 47,266,130 9,792,976 421,822 60,423,572
Personal accident
Net 2,209,775 42,481,769 9,724,714 39,011 54,455,269
Gross 29,213,302 160,713,719 57,939,804 117,985,923 365,852,748
Medical
Net 19,179,127 83,089,712 49,776,535 63,539,553 215,584,927
Gross 70,227,395 259,551,292 111,365,676 786,908,087 1,228,052,450
Other
Net 39,424,273 146,084,670 61,103,209 198,488,745 445,100,897
Long-term business
Gross 27,611,250 3,584,443 40,120 - 31,235,813
Ordinary life
Net 26,702,685 3,192,949 (441) - 29,895,193
Gross 1,740,534,690 1,088,530,292 55,660,712 11,390,704 2,896,116,398
Group life
Net 919,286,187 344,030,985 24,040,666 7,053,888 1,294,411,726
Gross 6,136,108 2,512,028 - - 8,648,136
Annuity
Net 6,136,108 2,512,028 - - 8,648,136
Gross 1,968,104,603 1,680,945,181 337,730,951 1,237,558,402 5,224,339,137
Total
Net 1,063,922,456 730,598,915 240,482,857 453,589,751 2,488,593,979

(ii) Financial risk
The Group is exposed to financial risk through its financial assets, financial liabilities (investment contracts and borrowings), reinsurance
assets and insurance liabilities. In particular the key financial risk is that the proceeds from its financial assets are not sufficient to fund the
obligations arising from its insurance and investment contracts.
These risks arise from open positions in interest rate, currency and equity products, all of which are exposed to general and specific market
movements. The risks that the Group primarily faces due to the nature of its investments and liabilities are interest rate risk and equity price
risk.
The Group manages these positions within an asset liability management (ALM) framework that has been developed to achieve long-term
investment returns in excess of its obligations under insurance and investment contracts. The principal technique of the Group’s ALM is to
match assets to the liabilities arising from insurance and investment contracts by reference to the type of benefits payable to contract holders.
For each distinct category of liabilities, a separate portfolio of assets is maintained.
The Group has exposure to the following risks arising from financial instruments:
(a) Market risk
Market risk will apply to quoted equity investments valued through profit or loss as well as those through equity, balances and investments
carried in currencies other than reporting currency and investments in associates and investments that are translated to the Group reporting
currency.
(i) Foreign exchange risk
The Group operates regionally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to
the US Dollar, Uganda shilling and Tanzania Shilling. Foreign exchange risk arises from future commercial transactions, recognized assets
and liabilities and net investments in foreign operations.
The Group manages foreign exchange risk arising from future commercial transactions and recognized assets and liabilities by maintaining
Dollar currency deposits.
The Group had the following significant foreign currency (all amounts expressed in Kenya Shillings thousands):
Uganda Tanzania Mauritius Burundi

Exchange Risk Total
US Dollar Shillings Shillings Rupees Francs
As at 31 December 2018: KShs’000 KShs’000 KShs’000 KShs’000 KShs’000 KShs’000
ASSETS
Receivables arising out of reinsurance arrangements - 28,809 853,408 300,053 87,697 1,269,967
Deferred acquisition costs - 9,114 38,177 15,906 (2,096) 61,101
Deposit with financial institutions 2,087 - 929,208 64,222 614,879 1,610,396
Cash and bank balances - 3,459 138,070 114,780 193,901 450,210
Total assets 2,087 41,382 1,958,863 494,961 894,381 3,391,674
LIABILITIES
Provision for unearned premium - 39,022 1,366,316 1,206 180,618 1,587,162
Insurance contract liabilities - 30,112 1,361,038 2,546 125,332 1,519,028
Deferred acquisition costs - - (67,224) 76,417 184,622 193,815
Creditors arising out of reinsurance arrangements - - - - - -
Total liabilities - 69,134 2,660,130 80,169 490,572 3,300,005
Net position 2,087 (27,752) (701,267) 414,792 403,809 91,669

Total
US Dollar Shillings Shillings Rupees Francs
ASSETS
Receivables arising out of reinsurance arrangements - - 403,988 245,969 64,844 714,801
Deferred acquisition costs - - 39,733 59,621 - 99,354
Deposit with financial institutions 392,436 - 936,808 72,160 599,388 2,000,792
Cash and bank balances - 4,707 54,884 148,445 82,807 290,843
Total assets 392,436 4,707 1,435,413 526,195 747,039 3,105,790
LIABILITIES
Provision for unearned premium - 18,274 1,422,004 430,083 175,938 2,046,299
Insurance contract liabilities - 32,717 1,328,026 203,815 163,063 1,727,621
Deferred acquisition costs - 5,710 - - 2,162 7,872
Creditors arising out of reinsurance arrangements - - (173,528) 91,044 205,733 123,249
Total liabilities - 345,013 170,444 34,918 195,089 3,905,041
Net position 392,436 (340,306) 1,264,969 491,277 551,950 (799,251)

(ii) Financial risk (continued)
(a) Market Risk (continued)
(i) Foreign exchange risk (continued)
At 31 December 2018, if the Shilling had weakened/strengthened by 10% against the US dollar with all other variables held constant,
the post-tax profit for the year would have been KShs 209 thousand (2017: KShs 39 million) higher/lower, mainly as a result of US dollar
receivables and bank balances in the Kenyan entity.
Company
Exchange Risk US Dollar Shillings Shillings Rupees Francs Total
ASSETS
Due from related parties - 46,400 11,463 860 60,620 119,343
Deposit with financial institutions 2,087 - - - - 2,087
Cash and bank balances - 3,459 - - 3,459
Total assets 2,087 49,859 11,463 860 60,620 124,889
LIABILITIES
Due to related parties - 768,231 22,595 - - 790,826
Total liabilities - 768,231 22,595 - - 790,826
Net position 2,087 (718,372) (11,132) 860 60,620 (665,937)

US Dollar Shillings Shillings Rupees Francs Total
ASSETS
Due from related parties - - 860 75,520 76,380
Deposit with financial institutions 2,395 - - - - 2,395
Cash and bank balances - 4,707 - 1 - 4,708
Total assets 2,395 4,707 - 861 75,520 83,483
LIABILITIES
Due to related parties - 768,231 20,889 - - 789,120
Total liabilities - 768,231 20,889 - - 789,120
Net position 2,395 (763,524) (20,889) 861 75,520 (705,637)
At 31 December 2018, if the Shilling had weakened/strengthened by 10% against the US dollar with all other variables held constant, the
post-tax profit for the year would have been KShs 21 thousand (2017: KShs 23 thousand) higher/lower, mainly as a result of US dollar
receivables and bank balances in the Kenyan entity.
The Group’s exposure to the foreign currency risk of its subsidiaries and associates companies (where the entity’s reporting currency is not
Kenya Shilling linked) is summarized in the tables below by country and reporting currency:

Exchange Risk US Dollar Shillings Shillings Rupees Francs
As at 31 December 2018: KShs’000 KShs’000 KShs’000 KShs’000 KShs’000
Subsidaries
Jubilee Uganda - 7,763,294 - - -
Jubilee Tanzania - - 1,297,071 - -
Jubilee Mauritius - - - 273,903 -
Jubilee Burundi - - - - 344,968
Associates - - - - -
Bujagali Holdings Power Company Limited 2,321,370 - - - -
IPS Cable Systems Limited 2,521,406 - - - -
IPS Power Investment Limited 91,650 - - - -
Group gross foreign currency exposure 4,934,426 7,763,294 1,297,071 273,903 344,968
Non-controlling interest foreign currency exposure - (1,105,292) (626,559) (54,781) (100,347)
Net gross foreign currency exposure 4,934,426 6,658,002 670,512 219,122 244,621
Exchange Rates
Closing rate at 31 December 2017 101.846 36.460 22.583 2.975 17.602
Average rate during the year 2017 101.299 36.800 22.476 2.979 17.467

(a) Market Risk (continued)
(i) Foreign exchange risk (continued)

Exchange Risk US Dollar Shillings Shillings Rupees Francs
As at 31 December 2017: KShs’000 KShs’000 KShs’000 KShs’000 KShs’000
Subsidaries
Jubilee Uganda - 6,682,652 - - -
Jubilee Tanzania - - 1,184,517 - -
Jubilee Mauritius - - - 281,627 -
Jubilee Burundi - - - - 271,537
Associates - - - - -
Bujagali Holdings Power Company Limited 2,264,303 - - - -
IPS Cable Systems Limited 2,519,322 - - - -
IPS Power Investment Limited 98,435 - - - -
Group gross foreign currency exposure 4,882,060 6,682,652 1,184,517 281,627 271,537
Non-controlling interest foreign currency exposure - (973,737) (571,086) (56,325) (77,374)
Net gross foreign currency exposure 4,882,060 5,708,915 613,431 225,302 194,163
Exchange Rates
Closing rate at 31 December 2016 103.232 35.212 21.699 3.076 17.099
Average rate during the year 2016 103.379 35.243 21.473 2.900 16.714
(ii) Price risk
The Group is exposed to equity securities price risk because of investments in quoted and unquoted shares classified either as financial assets
at fair value through other comprehensive income or at fair value through profit or loss. The Group is not exposed to commodity price risk. To
manage its price risk arising from investments in equity and debt securities, the Group diversifies its portfolio. Diversification of the portfolio is
done in accordance with limits set by the Group. All quoted shares held by the Group are traded on the Nairobi Securities Exchange (NSE),
the Uganda Securities Exchange (USE) and Dar es Salaam Stock Exchange (DSE).
The following group and company assets were subject to price risk at the end of the year:
Group Company
2018 2017 2018 2017
KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000
Corporate bonds at fair value through profit or loss 38,460 - - -
Quoted equity investments at fair value through other comprehensive income 4,945,579 6,853,603 - -
Quoted equity investments at fair value through profit or loss 1,617,728 1,276,692 23,405 20,270
Total exposure 6,601,767 8,130,295 23,405 20,270
Group
At 31 December 2018, if the NSE, USE and DSE, indices had increased/decreased by 10% (2017:10%) with all other variables held
constant and all the Group’s equity instruments moved according to the historical correlation to the index, the post-tax profit would have
been KShs 835 million (2017 KShs 89 million) higher/lower, while post-tax other comprehensive income would have been KShs 346 million
(2017: KShs. 479 million).
Company
At 31 December 2018 the Company did not hold any shares in the Nairobi Securities Exchange. All quoted shares held by the Company
are traded on the Uganda Securities Exchange (USE). If the USE indices had increased/decreased by 10% with all other variables held
constant, all the companies’ equity instruments moved according to the historical correlation to the index, then equity movement would not
have been significant.
(b) Cash flow and fair value interest rate risk

Fixed interest rate financial instruments expose the Group to fair value interest rate risk. Variable interest rate financial instruments expose
the Group to cash flow interest rate risk.
The Group’s fixed interest rate financial instruments are government securities, deposits with financial institutions and corporate bonds.
The Group’s variable interest rate financial instruments are call deposits, as the rates may fluctuate based on changes in the market interest rates.

(b) Cash flow and fair value interest rate risk (continued)
The sensitivity analysis for interest rate risk illustrates how changes in the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates at the reporting date.
The following assets were subject to cash flow and fair value interest risk at the end of the year:
Group Company
2018 2017 2018 2017
Corporate bonds at amortised cost 802,939 904,007 - -
Corporate bonds at fair value through profit or loss 38,460 - - -
Government securities at amortised cost 44,975,816 47,195,222 - -
Government securities fair value through profit or loss 10,264,809 - - -
Deposits with financial institutions 11,315,417 10,585,597 919,427 250,098
Total exposure 67,397,441 58,684,826 919,427 250,098
At 31 December 2018, if the interest rates applicable to the above mentioned financial instruments had increased/decreased by 10%
(2017:10%) with all other variables held constant, the change in the post-tax profit would not have been significant as the call deposits are
held in the interim and placed in fixed interest rate instruments.
(c) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an
obligation. Credit risk mainly arises from financial assets. Key areas where the Group is exposed to credit risk are:
• receivables arising out of direct insurance arrangements;

• receivables arising out of reinsurance arrangements;
• reinsurers’ share of insurance liabilities;
• corporate bonds;
• deposits with banks;
• government securities; and
• mortgage receivables.
The Group structures the levels of credit risk it accepts by dealing with institutions with good credit ratings and placing limits on its exposure
to a single counterparty, or groups of counterparties, and to geographical and industry segments. Such risks are subject to annual or more
frequent reviews. Limits on the level of credit risk by category and territory are approved quarterly by the Board of Directors.
Credit risk on trade receivables is managed by ensuring that credit is extended to customers with an established credit history. The credit
history is determined by taking into account the financial position, past experience and other relevant factors. Credit is managed by setting
the credit limit and the credit period for each customer. The utilization of the credit limits and the credit period is monitored by management
on a monthly basis.
Reinsurance is used to manage insurance risk. This does not, however, discharge the Group’s liability as primary insurer. If a reinsurer fails
to pay a claim for any reason, the Group remains liable for the payment to the policyholder. The credit worthiness of reinsurers is considered
on an annual basis by reviewing their financial strength prior to finalization of any contract.
Management information reported to the Group includes details of provisions for impairment on financial assets at amortized cost and
subsequent write-offs. Internal audit makes regular reviews to assess the degree of compliance with the Group procedures on credit.
Exposures to individual policyholders and groups of policyholders are collected within the ongoing monitoring of the controls associated with
regulatory solvency. Where there exists significant exposure to individual policyholders, or homogenous groups of policyholders, a financial
analysis equivalent to that conducted for reinsurers is carried out by the Group risk department.

(c) Credit risk (continued)
The credit quality of financial assets with the exception of receivables from direct insurance is assessed by reference to external credit ratings
if available. Where external credit ratings are not available the counterparty is assessed based on historical information available relating
to the counterparty default rates.
Local regulations of Kenya, Uganda and Tanzania require require a minimum investment in the local government securities. As per S&P
rating the Government of Kenya and the Government of Uganda which has B+ and B respectively. These ratings are considered when
investing in Government securities over and above the regulatory requirements.
For investments in corporate bonds and deposits with financial institutions, the stability and reputation of the companies and banks is
reviewed regularly.
The maximum exposure of the Group to credit risk (financial instruments subject to impairment) as at the balance sheet date is as follows:
Stage 1 Stage 2 Stage 3 Total

31 December 2018 KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000
Government Securities at amortised cost 44,975,816 - - 44,975,816
Corporate Bonds at amortized cost 802,939 - - 802,939
Mortgage loans 39,318 - 28,679 67,997
Loans from Life Insurance policies 931,713 - - 931,713
Receivables arising out of direct insurance arrangements 2,241,441 1,816,743 818,345 4,876,529
Receivables arising out of reinsurance arrangements 1,396,006 1,797,159 132,384 3,325,549
Other Receivables 1,377,227 - 19,006 1,396,233
Deposits with financial institutions 11,315,417 - - 11,315,417
Cash at Bank 2,588,451 - - 2,588,451
Exposure to Credit Risk 65,688,328 3,613,902 998,414 70,280,644
Stage 1 Stage 2 Stage 3 Total

31 December 2017 KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000
Government Securities at amortized cost 47,195,222 - - 47,195,222
Corporate Bonds at amortized cost 904,007 - - 904,007
Mortgage loans 109,098 - - 109,098
Loans from Life Insurance policies 788,958 788,958
Receivables arising out of direct insurance arrangements 2,447,810 1,756,985 - 4,204,795
Receivables arising out of reinsurance arrangements 872,614 2,199,186 - 3,071,800
Other Receivables 1,377,227 - 19,006 1,396,233
Deposits with financial institutions 11,315,417 - - 11,315,417
Cash at Bank 2,588,451 - - 2,588,451
Exposure to Credit Risk 67,598,804 3,956,171 19,006 71,573,981
No collateral is held for any of the above assets other than for staff mortgage loans and car loans included under other receivables.
Properties in relation to staff mortgage loans and motor vehicles in relation to staff car loans are charged to the group as collateral.

The surrender value of the life insurance policies and title documents are held as collateral for loans on life policies and mortgage loans
respectively. All receivables that are neither past due or impaired are within their approved credit limits, and no receivables have had their
terms renegotiated.

(c) Credit risk (continued)
Loss Allowance
The loss allowance recognised in the period is impacted by a variety of factors, such as:
• Transfers between Stage 1 and Stages 2 or 3 due to financial instruments experiencing significant increases (or decreases) of credit risk
or becoming credit impaired in the period, and the consequent ‘step-up’ (or ‘step-down’) between 12 month and Lifetime ECL;
• Additional allowance for new financial instruments recognised in the period, as well as releases for financial instruments;
• Impact on the measurement of ECL due to changes made to models and assumptions;
• Discount unwind with ECL due to passage of time, as ECL is measured on a present value basis;
• Foreign exchange retranslations for assets denominated in foreign currencies and other movements;
• Financial assets derecognised during the period and write off of allowances related to assets that were written off during the period.
The table below explains the changes in the loss allowance between the beginning and the end of the annual period due to these factors:
Deposits with Cash and

Government financial Bank Corporate Insurance
Securities institutions balances bonds receivables Total
KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000
As at 31 December 2017 - - - - 675,813 675,813
As at 1 January 2018 1,038 1,067 919 14 48,603 51,641
Increase/(Decreease) 2,610 (6) 524 (7) (42,383) (39,262)
As at 31 December 2018 3,648 1,061 1,443 7 682,033 688,192
As at 1 January 2017 - - - - 662,330 662,330

Additional provision - - - - 13,483 13,483
As at 31 December 2017 - - - - 675,813 675,813
Maximum exposure to credit risk - financial instruments not subject to impairment

The following table contains an analysis of the maximum credit risk exposure from financial assets not subject to impairment (i.e. FVTPL):
Maximum Exposure to credit risk 2018 2017
KShs ‘000 KShs ‘000
Government securities at fair value through profit or loss 10,264,809 -
Corporate bonds at fair value through profit or loss 38,460 -
Quoted securities at fair value through profit or loss 4,945,579 6,853,603
Total 15,248,848 6,853,603

(d) Liquidity risk

Liquidity risk is the risk that the Group is unable to meet its payment obligations associated with its financial liabilities as they fall due and to
replace funds when they are withdraw.
The Group is exposed to daily calls on its available cash for claims settlement and other administration expenses. The Group does not
maintain cash resources to meet all of these needs as experience shows that a minimum level of reinvestment of maturing funds can be
predicted with a high level of certainty. The Board sets limits on the minimum level of bank overdraft facilities that should be in place to cover
expenditure at unexpected levels of demand.
The table below presents the undiscounted cash flows payable by the Company under financial and other liabilities by remaining contractual
maturities at the reporting date except for insurance contract liabilities and deposit administration contracts. Cash flows payable by the
Company under insurance contract liabilities and deposit administration contracts are presented based on expected maturities at the
reporting date.
GROUP
Up to 1 1 to 3 3 to 12 Over Discounting
Year ended 31 December 2018 month months months 1 year effect Total
Assets
Mortgage loans - - 16,107 66,490 (16,496) 66,101
Loans on life insurance policies 11,220 21,406 126,427 887,517 (114,857) 931,713
Government securities 120,539 3,125,956 5,943,083 47,699,079 (1,648,031) 55,240,625
Commercial bonds - - - 885,936 (44,537) 841,399
Other receivables 292,301 1,103,932 - - - 1,396,233
Insurance and reinsurance receiveables 2,511,659 1,885,803 1,739,621 1,108,985 - 7,246,068
Deposits with financial institutions and cash and bank
balances 1,743,656 9,658,894 2,501,317 - - 13,903,868
Total assets 4,679,375 15,795,992 10,326,555 50,648,007 (1,823,921) 79,626,007
Liabilities
Insurance contract liabilities 1,063,666 5,188,285 3,781,085 25,609,766 (10,103,725) 25,539,077
Payable under deposit administration contracts 454,297 1,511,262 11,370,747 54,719,932 (20,317,237) 47,739,002
Creditors arising out of direct insurance arrangements 31,721 52,291 56,633 60,856 - 201,501
Creditors arising out of reinsurance arrangements 688,956 475,404 426,206 235,296 - 1,825,863
Dividend and other payables 1,161,980 946,351 728,210 134,396 - 2,970,937
Total liabilities 3,400,619 8,173,594 16,362,882 80,760,246 (30,420,962) 78,276,380
(Shortfall)/excess of assets over liabilities 1,278,755 7,622,397 (6,036,327) (30,112,239) 28,597,041 1,349,627
Up to 1 1 to 3 3 to 12 Over Discounting
Year ended 31 December 2017 month months months 1 year effect Total
Assets
Mortgage loans - - 26,584 109,740 (27,226) 109,098
Loans on life insurance policies 9,501 18,126 107,056 751,534 (97,259) 788,958
Government securities 102,983 2,670,683 5,077,515 40,752,048 (1,408,007) 47,195,222
Commercial bonds - - - 951,858 (47,851) 904,007
Other receivables 226,232 854,410 - - - 1,080,642
Insurance and reinsurance receiveables 2,522,240 1,893,748 1,746,950 1,113,657 - 7,276,595
Deposits with financial institutions and cash and bank
balances 1,517,872 8,408,173 2,177,424 - - 12,103,469
Total assets 4,378,828 13,845,140 9,135,529 43,678,837 (1,580,343) 69,457,991
Liabilities
Insurance contract liabilities 1,040,527 5,075,420 3,698,832 25,052,655 (9,883,930) 24,983,504
Payable under deposit administration contracts 401,723 1,336,369 10,054,851 48,387,388 (17,965,995) 42,214,336
Creditors arising out of direct insurance arrangements 51,277 84,530 91,548 98,375 - 325,730
Creditors arising out of reinsurance arrangements 757,275 522,547 468,470 258,629 - 2,006,921
Dividend and other payables 924,849 753,225 579,601 106,969 - 2,364,644
Total liabilities 3,175,651 7,772,091 14,893,302 73,904,016 (27,849,925) 71,895,135
Excess/(shortfall) of assets over liabilities 1,203,177 6,073,049 (5,757,773) (30,225,179) 26,269,582 (2,437,144)

(d) Liquidity risk (continued)
COMPANY
Up to 1 to 3 to Over
Year ended 31 December 2018 1 month 3 months 12 months 1 year Total
Assets
Due from related parties 97,184 - - - 97,184
Other receivables - 134,517 - - 134,517
Deposits with financial institutions and cash and bank balances 991,219 17,500 - - 1,008,719
Total assets 1,088,403 152,017 - - 1,240,420
Liabilities
Due to related parties 891,142 - - - 891,142
Dividend and other payables 431,294 21,806 - - 453,100
Total liabilities 1,322,436 21,806 - - 1,344,242
Excess/(shortfall) of assets over liabilities (234,033) 130,211 - - (103,822)
Up to 1 to 3 to Over
Year ended 31 December 2017 1 month 3 months 12 months 1 year Total
Assets
Due from related parties 105,587 - - - 105,587
Other receivables - 109,916 - - 109,916
Deposits with financial institutions and cash and bank balances 255,496 17,500 - - 272,996
Total assets 361,083 127,416 - - 488,499
Liabilities
Due to related parties 789,120 - - - 789,120
Dividend and other payables 369,176 12,985 - - 382,161
Total liabilities 1,158,296 12,985 - - 1,171,281
Excess/(shortfall) of assets over liabilities (797,213) 114,431 - - (682,782)

(e) Fair value estimation
The fair value of financial instruments traded in active markets is based on quoted market prices at the reporting date. A market is regarded as active if quoted prices are readily and regularly available from
an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The quoted market
price used for financial assets held by the group is the current bid price. These instruments are included in level 1. Instruments included in level 1 comprise primarily quoted equity investments classified as
fair value through profit or loss and fair value through other comprehensive income. The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is
determined by using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant
inputs required to fair value an instrument are observable, the instrument is included in level 2. If one or more of the significant inputs is not based on observable market data, the instrument is included in
level 3.
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial
assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
GROUP
Carrying Amount Fair value heirarchy

Designated
at fair value Designated Other
through Amortised at fair value financial
31 December 2018 profit or loss cost through OCI liabilities Total Level 1 Level 2 Level 3 Total
Note KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000
Financial assets
Equity securities 17 & 21 9,289,790 - 1,812,341 - 11,102,131 6,563,307 - 4,538,824 11,102,131
Mortgage loans 20 (i) - 66,101 - - 66,101 - - - -
Loans on life insurance policies 20 (ii) - 931,713 - - 931,713 - - - -
Government securities 18 10,264,809 44,975,816 - - 55,240,625 10,264,809 - - 10,264,809
Commercial bonds 19 38,460 802,939 - - 841,399 38,460 - - 38,460
Other receivables 24 - 1,396,233 - - 1,396,233 - - - -
Insurance and reinsurance receiveables 4 (c) - 7,246,068 - - 7,246,068 - - - -
Deposits with financial institutions and cash and bank balances 25 (i) - 13,903,868 - - 13,903,868 13,903,868 - - 13,903,868
19,595,059 69,322,738 1,812,341 - 90,728,138 30,770,444 - 4,538,824 35,309,268
Financial liabilities
Other payables 29 - - - (2,539,644) (2,539,644) - - (2,539,644) (2,539,644)
Dividend payable 33 (ii) - - - (431,293) (431,293) - - (431,293) (431,293)
- - - (2,970,937) (2,970,937) - - (2,970,937) (2,970,937)

(e) Fair value estimation (continued)
GROUP

Designated
Financial assets
Equity securities 17 & 21 10,011,235 1,477,063 - 11,488,298 8,130,295 - 3,358,003 11,488,298
Mortgage loans 20 (i) - 109,098 - - 109,098 - - - -
Loans on life insurance policies 20 (ii) - 788,958 - - 788,958 - - - -
Government securities 18 - 47,195,222 - - 47,195,222 - - - -
Commercial bonds 19 - 904,007 - - 904,007 - - - -
Other receivables 24 - 1,080,642 - - 1,080,642 - - - -
Insurance and reinsurance receiveables 4 (c) - 7,276,595 - - 7,276,595 - - - -
Deposits with financial institutions and cash and bank 25 (i) - 12,103,469 - - 12,103,469 - - - -
balances
10,011,235 69,457,991 1,477,063 - 80,946,289 8,130,295 - 3,358,003 11,488,298
Other payables 29 - - - (1,995,468) (1,995,468) - - (1,995,468) (1,995,468)
- - - (2,364,644) (2,364,644) - - (2,364,644) (2,364,644)

COMPANY

Designated
Financial assets
Equity securities 17 & 21 - - 92,704 - 92,704 23,405 - 69,299 92,704
Other receivables 24 - 134,517 - - 134,517 - - - -
Deposits with financial institutions and cash and bank balances 25 (i) - 1,008,719 - - 1,008,719 - - - -
- 1,143,236 92,704 - 1,235,940 23,405 - 69,299 92,704
Other payables 29 - - - (21,806) (21,806) - - (21,806) (21,806)
- - - (453,100) (453,100) - - (453,100) (453,100)

Designated
Financial assets
Equity securities 17 & 21 - - 85,900 - 85,900 20,270 - 65,630 85,900
Other receivables 24 - 105,587 - - 105,587 - - - -
Deposits with financial institutions and cash and bank balances 25 (i) - 272,996 - - 272,996 - - - -
- 378,583 85,900 - 464,483 20,270 - 65,630 85,900
Other payables 29 - - - (12,985) (12,985) - - (12,985) (12,985)
- - - (382,161) (382,161) - - (382,161) (382,161)


The fair value of assets at amortised cost is as follows:
Amortized Cost Fair Value Amortized Cost Fair Value

2018 2018 2017 2017
Mortgage Loans Receivable 66,101 66,101 109,098 109,098
Loans on Life insurance policies 931,713 931,713 788,958 788,958
Corporate bonds at amortized cost 802,939 813,008 904,007 851,687
Government securities at amortized cost 44,975,816 43,176,783 47,195,222 35,396,417
Receivables arising of direct insurance arrangements 4,052,902 4,052,902 4,204,795 4,204,795
Receivables arising of reinsurance arrangements 3,193,166 3,193,166 3,071,800 3,071,800
Deposits with Financial Institutions 11,315,417 11,315,417 10,585,597 10,585,597
Cash and Bank Balances 2,588,451 2,588,451 1,517,872 1,517,872
Total 67,926,505 66,137,541 68,377,349 56,526,224
Specific valuation techniques used to value financial and non-financial instruments include:
• Quoted market prices or dealer quotes for similar instruments.
• Other techniques, such as discounted cash flow analysis, are used to determine fair value for the remaining financial instruments.
(f) Capital risk management
The Group’s objectives when managing capital, which is a broader concept than the ‘equity’ on the statement of financial position, are to:
• Comply with the capital requirements as set out in the regulations of the jurisdictions in which the Group entities operate;
• Comply with regulatory solvency requirements as set out in the Insurance Act;
• Safeguard the Group’s ability to continue as a going concern, so that it can continue to provide returns to shareholders and benefits
for other stakeholders; and
• Provide an adequate return to shareholders by pricing insurance and investment contracts commensurately with the level of risk.
The table below summarises the minimum required capital across the Group and the capital held against each of them as at 31 December
2018 and 2017. These figures are an aggregate number, being the sum of the statutory share capital in each country subject to local
regulatory requirements, which may differ from jurisdiction to jurisdiction.
2018
Kenya Uganda Tanzania Burundi Mauritius Total
Amount of paid up capital 2,500,000 392,706 214,958 92,969 310,465 3,511,098
Regulatory capital requirements 1,000,000 228,947 117,442 92,969 275,561 1,714,919
2017
Kenya Uganda Tanzania Burundi Mauritius Total
Amount of paid up capital 2,500,000 392,706 214,958 92,969 310,465 3,511,098
Regulatory capital requirements 1,000,000 228,947 117,442 92,969 275,561 1,714,919
The Group has different requirements depending on the country in which it operates. The three main countries are Kenya, Uganda and
Tanzania.

(f) Capital risk management (continued)
Kenya
In Kenya the Insurance Act requires each insurance Company to hold the minimum level of paid up capital as follows;
• Composite insurance companies Shs1billion;
• Short term insurance business companies KShs 600 million; and
• Long term insurance business companies KShs 400 million
Under the Risk Based Solvency requirements, solvency is determined based on the volume of business or implied risk of the asset as
determined by the regulator. Insurance companies are required to hold capital equal to 100% of the higher of absolute minimum capital,
volume of business or risk based capital minimum. During the year the Company held more than the minimum required capital to stand at
154% (2017: 184%) and 111% (2017: 147%) for the short-term and long term business’ respectively.
Uganda
In Uganda, statutory capital is based on Section 6 of the Insurance Act, 2011. The two insurance companies in Uganda complied with this
requirement during the year.
The Insurance Act, 2011further requires that 2% of the gross written premium or15% of the net profit, whichever is greater, be transferred
to the contingency reserve until it equals the minimum paid up capital or 50% of the current year’s net written premium, whichever is higher.
Additional, for short-term company, the Insurance Act, 2011 requires that 5% of the net profit for the year be transferred to the capital
reserve.
The two Ugandan insurance entities were in compliance with the regulatory requirements.
Tanzania
In Tanzania, capital requirement is regulated by regulations 27 (2) (a) of the Insurance Regulations and 27 (2) (b) on contingency reserve.
General insurance businesses are required to transfer 20% of their net profit to the capital reserve and 3% on the net premium or 20% of net
profit, whichever is higher, to the contingency reserve.
Long term insurance businesses are required to transfer 1% on premium to the contingency reserve.
The two Tanzanian insurance entities were in compliance with the regulatory requirements.

5. SEGMENT INFORMATION
(i) OPERATING SEGMENTS
Management has determined operating segments based on the manner in which the Executive Management team receives reports about
business performance and makes strategic decisions. Management classify the business into short-term business and long-term business and
investment business.
Segment performance is set out in the following tables:
GROUP
Kshs ‘000
Ordinary, Group
2018: For the year ended 31 December 2018 General Life & Pensions Investments Total
Gross earned premium revenue 20,573,123 6,133,531 - 26,706,654
Outward reinsurance (8,760,232) (624,938) - (9,385,170)
Net insurance premium revenue 11,812,891 5,508,593 - 17,321,484
Investment and other income 1,152,474 6,767,991 800,269 8,720,734

Net fair value loss on financial assets 27,058 21,828 (423,831) (374,945)
Commission earned 2,291,382 53,189 - 2,344,571
Total income 15,283,805 12,351,601 376,438 28,011,844
Claims and policy holders benefits payable (11,468,879) (9,224,423) - (20,693,302)

Claims recoverable from re-insurers 4,182,846 580,546 - 4,763,392
Net insurance benefits and claims (7,286,033) (8,643,877) - (15,929,910)
Operating and other expenses (3,196,212) (1,379,337) (107,097) (4,682,646)

Commission payable (2,262,764) (1,066,029) - (3,328,793)
Total expenses and commissions (5,458,976) (2,445,366) (107,097) (8,011,439)
Result of operating activities 2,538,796 1,262,358 269,341 4,070,495

Share of result of associates 152,067 260,209 927,237 1,339,513
Group profit before income tax 2,690,863 1,522,567 1,196,578 5,410,008
Income tax expense (757,667) (375,911) (99,479) (1,233,057)
Profit for the year 1,933,196 1,146,656 1,097,099 4,176,951
Kshs ‘000
Ordinary, Group
2017: For the year ended 31 December 2017 General Investments Total
Life & Pensions
Gross earned premium revenue 21,463,397 6,865,451 - 28,328,848
Less: outward reinsurance (8,479,642) (655,342) - (9,134,984)
Net insurance premium revenue 12,983,755 6,210,109 - 19,193,864
Investment and other income 1,405,088 5,919,471 250,801 7,575,360

Net fair value loss on financial assets 294,910 2,405,561 - 2,700,471
Commission earned 1,747,805 55,648 - 1,803,453
Total income 16,431,558 14,590,789 250,801 31,273,148
Claims and policy holders benefits payable (13,540,873) (11,586,403) - (25,127,276)
Claims recoverable from re-insurers 5,139,984 333,396 - 5,473,380
Net insurance benefits and claims (8,400,889) (11,253,007) - (19,653,896)
Operating and other expenses (3,042,833) (1,166,880) (30,378) (4,240,091)
Commission payable (2,295,610) (1,105,283) - (3,400,893)
Total expenses and commissions (5,338,443) (2,272,163) (30,378) (7,640,984)
Result of operating activities 2,692,226 1,065,619 220,423 3,978,268
Share of result of associates 161,836 170,773 850,093 1,182,702
Group profit before income tax 2,854,062 1,236,392 1,070,516 5,160,970
Income tax expense (587,104) (253,613) (89,943) (930,660)
Profit for the year 2,266,958 982,779 980,573 4,230,310
2018: As at 31 December 2018
Short-term Long-term Investments Total
Total assets 28,127,161 74,951,191 11,089,287 114,167,639
Total liabilites 17,794,646 67,589,116 712,510 86,096,272
Investment in associates 1,949,419 1,963,905 6,082,489 9,995,813
Additions to non-current assets 89,196 57,856 303 147,354
Depreciation 64,324 39,563 2,161 106,047
Amortisation of intangible assets 36,233 26,026 - 62,258
2017: As at 31 December 2017

Short-term Long-term Investments Total
Total assets 29,873,743 65,676,812 9,416,975 104,967,530
Total liabilites 18,735,936 60,481,515 519,429 79,736,880
Investment in associates 1,789,248 1,861,792 5,928,287 9,579,327
Additions to non-current assets 126,480 76,879 597 203,956
Depreciation 67,201 36,758 6,362 110,321
Amortisation of intangible assets 30,906 3,959 - 34,865

5. SEGMENT INFORMATION (CONTINUED)
(ii) GEOGRAPHICAL SEGMENTS
The Group’s geographical segments are Kenya, Uganda, Tanzania, Burundi and Mauritius. Kenya is the home country of the parent
Company. The Group has investments in these geographical segments.
KShs ‘000
2018: For the year ended
31 December 2018 Kenya Uganda Tanzania Mauritius Burundi Total
Total income from short-term 9,138,804 2,514,565 2,450,414 889,614 290,408 15,283,805
Total income from long-term 11,190,140 853,430 278,680 - 29,351 12,351,601
Total income from investments 689,701 957,138 13 - 9,723 1,656,575
Share of associates profit 631,217 708,296 - - - 1,339,513
Group profit before income tax 2,439,375 2,567,389 297,516 (71) 105,799 5,410,008
Non-current assets 256,827 84,319 95,094 19,758 10,584 466,582
Total assets 93,401,266 12,597,443 5,934,726 1,035,934 1,198,270 114,167,639
Total liabilities 74,548,216 5,579,836 4,422,118 759,018 787,084 86,096,272
2017: For the year ended

31 December 2017 Kenya Uganda Tanzania Mauritius Burundi Total
Total income from short-term 10,998,897 2,225,290 2,237,322 790,134 179,915 16,431,558
Total income from long-term 13,657,200 590,820 247,122 - 95,647 14,590,789
Total income from investments 14,935 224,889 2 - 10,975 250,801
Share of associates profit 596,667 586,035 - - - 1,182,702
Group profit before income tax 2,806,418 2,106,284 131,282 27,189 89,797 5,160,970
Non-current assets 269,732 66,037 75,508 17,636 10,615 439,528
Total assets 83,775,100 13,144,115 5,992,655 982,508 1,073,152 104,967,530
Total liabilities 68,413,594 5,224,700 4,658,612 696,888 743,086 79,736,880
6. GROSS EARNED PREMIUM AND REINSURANCE CEDED
Group
Gross Earned Premium

Short-term Business
Premium earned by principal class of business: 2018 2017
Gross Reinsurance Net Gross Reinsurance Net
KShs’000 KShs’000 KShs’000 KShs’000 KShs’000 KShs’000
Motor 4,334,399 (421,953) 3,912,446 4,428,089 (592,202) 3,835,887
Fire 2,813,586 (2,273,062) 540,524 2,717,537 (2,182,629) 534,908
Accident 2,993,355 (1,759,125) 1,234,230 3,182,441 (1,802,716) 1,379,725
Medical 9,815,999 (3,938,917) 5,877,082 10,636,543 (3,586,979) 7,049,564
Other 615,785 (367,174) 248,611 545,048 (315,115) 229,933
Total Short-Term 20,573,124 (8,760,231) 11,812,893 21,509,658 (8,479,641) 13,030,017
Long-term Business
Premium earned by principal class of business: 2018 2017
Ordinary life 4,148,826 (18,434) 4,130,392 3,480,978 (13,107) 3,467,871
Group life 1,297,126 (606,505) 690,621 1,558,258 (642,236) 916,022
Pension/annuity 687,578 - 687,578 1,779,954 - 1,779,954
Total Long -Term 6,133,530 (624,939) 5,508,591 6,819,190 (655,343) 6,163,847
Total Short-Term and Long - Term 26,706,654 (9,385,170) 17,321,484 28,328,848 (9,134,984) 19,193,864

7. INVESTMENT AND OTHER INCOME

Group Company
2018 2017 2018 2017
Government securities interest 6,586,677 5,517,275 - -
Bank deposit interest 657,647 688,106 48,318 13,006
Gross rental income from investment properties 585,823 516,085 - -
Management expenses (191,261) (175,020) - -
Net rental income from investment properties 394,562 341,065 - -
Dividends received from equity investments 202,370 243,887 2,146 571
Fair value gain on investment properties (Note 14) 185,067 238,119 - -
Policy loans interest 68,833 76,529 - -
Other income 178,435 46,013 - (129)
Mortgage loan interest 5,228 6,775 - -
Exchange gain/(loss) 69,854 4,239 73 (3,653)
Fee income charged 372,061 413,352 - -
Dividends received from associates - - 172,470 108,705
Dividends received from subsidairies - - 1,057,864 798,100
Total 8,720,734 7,575,360 1,280,871 916,600
8. FAIR VALUE MOVEMENTS ON FINANCIAL ASSETS

(i) Through profit or loss
Group
2018 2017
Fair value gain/(loss) on quoted equity investments (Note 21) (1,214,788) 2,314,846
Fair value gain on unquoted equity investments (Note 17) 839,843 385,625
Total (374,945) 2,700,471
(ii) Through other comprehensive income
Group Company
2018 2017 2018 2017
Fair value (loss)/gain on quoted equity investments (Note 21) (348,043) 195,682 3,135 (3,145)
Fair value gain on unquoted equity investments (Note 17) 3,669 97,216 3,669 38,159
Total (344,374) 292,898 6,804 35,014
9. COMMISSION EXPENSE AND INCOME

Group
Commission expense and income by principal class of business: 2018 2017

Expense Income Net Expense Income Net
Motor 484,542 (68,266) 416,276 480,347 (117,168) 363,179
Fire 530,833 (573,694) (42,861) 487,458 (480,118) 7,340
Accident 390,026 (458,013) (67,987) 445,096 (400,958) 44,138
Medical 789,665 (1,087,470) (297,805) 808,233 (653,097) 155,136
Other 67,696 (103,940) (36,244) 74,475 (96,464) (21,989)
Total Short-term 2,262,762 (2,291,383) (28,621) 2,295,609 (1,747,805) 547,804
Long-term Business
Commission expense and income by principal class of business: 2018 2017
Expense Income Net Expense Income Net
Ordinary life 832,232 (3,496) 828,736 776,409 (2,961) 773,448
Group life 154,804 (49,692) 105,112 240,918 (52,687) 188,231
Annuity 78,995 - 78,995 87,957 - 87,957
Total Long-term 1,066,031 (53,188) 1,012,843 1,105,284 (55,648) 1,049,636
Total Short-term and Long-term 3,328,793 (2,344,571) 984,222 3,400,893 (1,803,453) 1,597,440

10. CLAIMS AND POLICY HOLDER BENEFITS EXPENSE
Group
Short-term Business
Claims payable by principal class of business 2018 2017
Motor 2,623,892 (204,341) 2,419,551 2,522,015 (304,759) 2,217,256
Fire 837,049 (650,802) 186,247 1,175,958 (1,017,488) 158,470
Accident 820,150 (343,788) 476,362 1,738,409 (1,030,988) 707,421
Medical 7,077,230 (2,938,887) 4,138,343 7,585,981 (2,718,733) 4,867,248
Other 110,559 (45,027) 65,532 213,035 (117,059) 95,976
Total Short-term 11,468,880 (4,182,845) 7,286,035 13,235,398 (5,189,027) 8,046,371
Long-term Business
Claims payable by principal class of business 2018 2017
Ordinary life 1,537,213 (1,710) 1,535,503 1,227,923 (8,677) 1,219,246
Group life 879,764 (578,837) 300,927 976,490 (275,676) 700,814
Annuity 526,107 - 526,107 758,671 - 758,671
Total Long-term 2,943,084 (580,547) 2,362,537 2,963,084 (284,353) 2,678,731
2018 2017
Increase/(decrease) in policy holders benefits Gross Reinsurance Net Gross Reinsurance Net
Ordinary life 1,866,426 - 1,866,426 1,936,247 - 1,936,247
Group life (39,582) - (39,582) (63,266) - (63,266)
Annuity 4,454,494 - 4,454,494 7,055,813 - 7,055,813
Total Long-term 6,281,338 - 6,281,338 8,928,794 - 8,928,794
Total Long-term - Claims & policy holders benefits 9,224,422 (580,547) 8,643,875 11,891,878 (284,353) 11,607,525
Total Short-term and Long-term 20,693,302 (4,763,392) 15,929,910 25,127,276 (5,473,380) 19,653,896
11. (i) OPERATING EXPENSES
The breakdown of operating expenses is given below:
Group Company
2018 2017 2018 2017
Employee benefits expense (Note 11 (ii)) 2,538,966 2,116,810 176 2,060
Administrative costs 684,495 525,065 15,877 3,280
Premium tax and policy holder compensation fund 269,672 234,599 - -
Impairment charge for doubtful premium receivables 267,036 117,609 - -
Operating lease rentals - land and buildings 305,277 194,575 - (35,184)
Marketing costs 127,902 322,435 - -
Professional fees 149,180 335,266 18,359 9,564
Depreciation and amortisation (Note 13) 188,306 145,186 3,620 6,146
Travelling costs 71,512 103,702 5,790 9,895
Repairs and maintenance expenditure 28,006 54,604 943 222
Communication costs 19,996 58,989 99 487
Auditors’ remuneration 32,298 31,251 2,445 2,275
Total 4,682,646 4,240,091 47,309 (1,255)

11. (ii) EMPLOYEE BENEFITS EXPENSE
Group Company
2018 2017 2018 2017
Salaries and wages 2,086,107 1,734,882 - (398)
Social security costs 60,619 49,398 - -
Retirement benefit costs - defined contribution plan 98,615 94,205 - -
Other benefits 293,625 238,325 176 2,458
Total 2,538,966 2,116,810 176 2,060
* Other benefits include staff training, staff medical cover expenses, club subscriptions, staff relocation and other staff welfare expenses.
As at 31 December 2018 a total of 1,209 (2017: 1,017) and 9 (2017:8) staff were employed within the Group and the Company
respectively.
11. (iii) KEY MANAGEMENT COMPENSATION AND DIRECTORS’ REMUNERATION
2018 2017 2018 2017

Salaries and other employment benefits 695,840 628,228 - -
Fees for services as directors 6,137 5,550 3,420 3,475
Total 701,977 633,778 3,420 3,475
There were no loans given to Directors in the year ended 31 December 2018 (2017: Nil).
12. 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.
Group Company
2018 2017 2018 2017
Net profit attributable to Shareholders (KShs’000) 3,806,450 3,932,142 1,219,559 911,319
Number of ordinary shares in issue (‘000) 72,473 72,473 72,473 72,473
Earnings per share (KShs)-Basic and diluted 52.52 54.26 16.83 12.57
There were no potentially dilutive shares in issue at 31 December 2018 and 31 December 2017. Diluted earnings per share are therefore
the same as basic earnings per share.

13. PROPERTY AND EQUIPMENT AND INTANGIBLE ASSETS
(i) PROPERTY AND EQUIPMENT
Group
Furniture, fixtures,
Computer fittings & office
equipment Motor vehicles equipment Total
Cost
At start of year 509,340 80,378 469,786 1,059,504
Additions 78,674 9,446 59,234 147,354
Disposals - (754) - (754)
Exchange differences (6,580) (2,714) (5,050) (14,344)
At end of year 581,434 86,356 523,970 1,191,760
Accumulated depreciation
At start of year 419,538 51,902 306,877 778,317
Charge for the year 51,357 9,497 45,193 106,047
Disposals - (603) - (603)
Exchange differences (4,842) (2,416) (2,764) (10,022)
At end of year 466,053 58,380 349,306 873,739
Net book value 115,381 27,976 174,664 318,021

Cost
At start of year 427,413 68,758 391,977 888,148
Additions 82,027 13,788 78,227 174,042
Disposals - (2,009) - (2,009)
Exchange differences (100) (159) (418) (677)
At end of year 509,340 80,378 469,786 1,059,504
At start of year 365,573 46,571 258,350 670,494.00
Charge for the year 53,952 7,621 48,748 110,321.00
On disposals - (1,856) - (1,856.00)
Exchange differences 13 (434) (222) (643.00)
At end of year 419,538 51,902 306,877 778,317
Net book value 89,802 28,476 162,909 281,187

13. PROPERTY AND EQUIPMENT AND INTANGIBLE ASSETS (CONTINUED)

(i) PROPERTY AND EQUIPMENT (CONTINUED)
Company
Computer Furniture, fixtures, Total

equipment fittings & office
equipment
KShs ‘000 KShs ‘000 KShs ‘000
Cost
At start of year 2,686 36,629 39,315
Additions - 70 70
At end of year 2,686 36,699 39,385
At start of year 1,806 20,228 22,034
Charge for the year 767 2,853 3,620
At end of year 2,573 23,081 25,654
Net book value 113 13,618 13,731

Cost
At start of year 2,350 36,368 38,718
Additions 336 261 597
At end of year 2,686 36,629 39,315
At start of year 978 14,911 15,889
Charge for the year 828 5,317 6,145
At end of year 1,806 20,228 22,034
Net book value 880 16,401 17,281

13. PROPERTY AND EQUIPMENT AND INTANGIBLE ASSETS (CONTINUED)

(ii) INTANGIBLE ASSETS
Group
Group Total
Year ended 31 December 2018 KShs ‘000
Cost
At start of year 267,297
Additions 53,278
Exchange differences (1,853)
At end of year 318,722
Accumulated amortisation
Charge for the year 62,258
Exchange differences (1,052)
Net carrying amount 148,560

Cost
Additions 29,914
Exchange differences 738
Accumulated amortisation
Charge for the year 34,865
Exchange differences 871
Net carrying amount 158,341
Intangible assets relates to computer software.
14. INVESTMENT PROPERTIES
Group
2018 2017
At start of year 6,270,940 6,011,881
Net additions 19,546 28,341
Fair value gains (Note 7) 185,067 238,119
Exchange differences (81,538) (7,401)
At end of year 6,394,015 6,270,940
Investment property comprises a number of commercial properties that are leased to third parties. Investment property for the Group was
valued by Redfearn International Limited on the basis of open market value. Investment properties include properties situated within Kenya
valued at KShs 4,458 million (2017: KShs 4,378 million) and those outside Kenya valued at KShs 1,936 million (2017: KShs 1,893 million).
Refer to Note 37 on operating leases for net operating income in profit or loss from investment properties.

14. INVESTMENT PROPERTIES (CONTINUED)

The investment properties are leased to third parties under operating leases and partly occupied by the Group. No contingent rents are charged.
There is neither restriction on the realisability of the investment properties nor are there contractual obligations pegged to the investment properties.
All investment properties as at the end of the year are measured at fair value. In arriving at the open market value of the lettable properties,
the valuer obtains the realised value of recent property sales of similar properties and compares with the carrying value of the investment
property. The investment properties are disclosed at level 2 of the fair value measurement hierarchy.
Given that the valuer uses actual sales data in performing the valuation, any changes in the market interest rates or rental income would not
result in any significant change in the carrying value of investment property.
15. INVESTMENT IN ASSOCIATED COMPANIES AND SUBSIDIARIES

In determining the Group’s and Company’s significant control over the investments in associates it considered that they have:
power over the associates and subsidiaries based on the shareholding;
exposure, or rights, to variable returns from their involvement with the associates and subsidiaries; and
the ability to use their power over the associates and subsidiaries to affect the amount of the its returns, based on representation with the
various entity Boards
(i) INVESTMENT IN ASSOCIATES

The Group has invested in thee associate companies whose information is as follows:
IPS Power Investment Limited - an investment vehicle company, which through its subsidiary has invested in the equity of Tsavo Power
Company Limited that generates electricity for sale.
Bujagali Holding Power Company Limited - an investment vehicle company which through its subsidiary has invested in the equity
of Bujagali Energy Limited an electricity generating company in Uganda.
PDM (Holding) Limited - an investment vehicle company which has invested in the equity of Property Development and Management
(K) Limited which conducts property investment, development and management. The Jubilee insurance Company of Kenya owns 37.1% of
this Company
FCL Holdings Limited - an investment vehicle company which has invested in the equity of Farmers Choice Limited with its main objective
being sale of fresh and processed meat products.
IPS Cable Systems Limited - an investment vehicle company which has invested in the 15,000 km Seacom submarine fiber optic cable
project.
All of the above entities have been accounted for as associates based on the percentage holding the Group has in the companies that gives
the Group control through voting rights and representation in the respective Boards.
Movement in Net Assets

Group
Opening Additions/ Dividends Share of Share of Translation Closing
Balance (redemptions) received profit OCI gain/(loss) Balance
Year 2018 KShs’000 KShs’000 KShs’000 KShs’000 KShs’000 KShs’000 KShs’000
IPS Power Investments Ltd 98,435 - (66,961) 60,176 - - 91,650
PDML (Holding) Limited 2,407,987 - (9,904) 107,197 (24,268) - 2,481,012
Bujagali Holding Power
Company Limited 2,264,303 (581,211) - 708,296 - (70,018) 2,321,370
FCL Holding Ltd 2,289,281 - (344,940) 416,695 219,339 - 2,580,375
IPS Cable Systems Ltd 2,519,321 - - 47,149 - (45,064) 2,521,406
Total 9,579,327 (581,210) (421,805) 1,339,513 195,071 (115,082) 9,995,813
Opening Additions/ Dividends Share of Share of Translation Closing

Balance (redemptions) received profit OCI gain/(loss) Balance
Year 2017 KShs’000 KShs’000 KShs’000 KShs’000 KShs’000 KShs’000 KShs’000
IPS Power Investments Ltd 198,887 - (110,696) 10,244 - - 98,435
PDML (Holding) Limited 2,184,599 - (9,985) 158,028 75,345 - 2,407,987
Bujagali Holding Power
Company Limited 2,282,893 (580,554) - 586,035 - (24,071) 2,264,303
FCL Holding Ltd 2,206,143 - (217,410) 328,674 (28,126) - 2,289,281
IPS Cable Systems Ltd 2,390,683 - - 99,721 - 28,917 2,519,321
Total 9,263,205 (580,554) (338,091) 1,182,702 47,219 4,846 9,579,327
Equity accounting has been applied for the associates in these financial statements using results based on audited financial statements as at 31
December 2018.

15. INVESTMENT IN ASSOCIATES AND SUBSIDIARIES (CONTINUED)

(i) INVESTMENT IN ASSOCIATES (CONTINUED)
Company
Investment at cost 2018 2017

KShs’000 KShs’000
FCL Holding Ltd 484,969 484,969
IPS Cable Systems Ltd 353,282 353,282
Total 838,251 838,251
The following table summarizes the information relating to each of the Group’s associate:
Group
Bujagali
IPS Power Farmer’s IPS Cable
PDML Hold- Holding
Investments Choice Systems Total
ings Limited Power Com-
Limited Limited Limited
pany Limited
Country of incorporation Kenya Kenya Uganda Kenya Mauritius
Interest held 27% 37% 25% 30% 33%

2018
Non-current assets 1,244,205 8,613,275 9,120,399 4,396,608 8,997,923 32,372,410
Current assets 143,369 1,550,666 265,094 3,666,350 13,295 5,638,773
Non-current liabilities - (2,136,321) - (1,081,862) - (3,218,183)
Current liabilities (142,435) (767,342) (100,015) (599,579) (404,161) (2,013,532)
Net assets 1,245,139 7,260,278 9,285,478 6,381,517 8,607,057 32,779,469
Revenue 477,830 773,344 (142,598) 10,110,268 194,493 11,413,337
Profit after tax 477,508 388,411 (241,816) 1,163,393 161,115 1,948,612
Other comprehensive income - (144,912) - 1,012,070 - 867,158
- - - - -
Cash flows from/(used in) operating
(6,998) 407,051 (72,778) 1,458,759 (4,317) 1,781,718
activities
Cash flows from/(used in) investing
465,042 (368,487) 1,259,068 (134,365) 194,493 1,415,751
activities
Cash flows used in financing activities (403,961) (81,537) (1,048,384) (1,150,000) (398,628) (3,082,510)
Net increase/(decrease) in cash
54,083 (42,973) 137,906 174,394 (208,452) 114,959
and cash equivalents

2017 -
Non-current assets 1,253,897 8,460,760 8,795,563 3,214,626 9,162,746 30,887,592
Current assets 103,169 1,327,876 332,537 3,592,215 226,940 5,582,737
Non-current liabilities - (2,159,546) - (803,079) (380,394) (3,343,019)
Current liabilities (20,331) (582,666) (64,817) (592,358) (409,525) (1,669,697)
Net assets 1,336,735 7,046,424 9,063,283 5,411,404 8,599,767 31,457,613

Revenue 485,683 651,619 2,317,606 9,488,422 403,179 13,346,509
Profit after tax 485,353 468,631 2,348,309 997,135 340,528 4,639,956
Other comprehensive income - 169,439 - - - 169,439

Cash flows (used in)/from operating
138,955 762,719 46,588 948,193 (8,191) 1,888,264
activities
Cash flows from/(used in) investing
593,240 (670,995) 91,997 (92,468) 403,178 324,952
activities
Cash flows used in financing activities (697,128) 5,389 (1,701,478) (725,000) (821,429) (3,939,646)
Net (increase)/decrease in cash
35,067 97,113 (1,562,893) 130,725 (426,442) (1,726,430)
Bujagali Holding Power Company Limited (BHPCL) holds 25% of Bujagali Energy Ltd (BEL) and accounts for its results under the Equity
accounting method. BHPCL summary of financial information information shows negative revenue and a loss for the year ended 31
December 2018 as a result of a loss reported in the accounts of BEL in 2018.
JHL has reported in 2018 the results of BHPCL as a profit for the year as the share of profit computation includes the impact of a restatement
of the financial statements of BHPCL in 2017 and 2018. In 2017, BEL was granted a tax holiday on the tax written down value of its
concession assets that increased its deferred tax liability increasing its profit after tax. This impact was not incorporated in the 2017 accounts
of JHL and has been adjusted in the 2018 share of profit of associate.


(i) INVESTMENT IN ASSOCIATES (CONTINUED)
Company
Farmer’s IPS Cable Sys- Total

Choice Limited tems Limited
KShs’000 KShs’000 KShs’000
Kenya Mauritius
15% 33%

2018
Non-current assets 4,396,608 8,997,923 13,394,531
Current assets 3,666,350 13,295 3,679,645
Non-current liabilities (1,081,862) - (1,081,862)
Current liabilities (599,579) (404,161) (1,003,740)
Net assets 6,381,517 8,607,057 14,988,574

Revenue 10,110,268 194,493 10,304,761
Profit after tax 1,163,393 161,115 1,324,508
Other comprehensive income 1,012,070 - 1,012,070

Cash flows from/(used in) operating activities 1,458,759 (4,317) 1,454,442
Cash flows (used in)/from investing activities (134,365) 194,493 60,128
Cash flows used in financing activities (1,150,000) (398,628) (1,548,628)
Net increase/(decrease) in cash and cash equivalents 174,394 (208,452) (34,058)

2017
Non-current assets 3,214,626 9,162,746 12,377,372
Current assets 3,592,215 226,940 3,819,155
Non-current liabilities (803,079) (380,394) (1,183,473)
Current liabilities (592,358) (409,525) (1,001,883)
Net assets 5,411,404 8,599,767 14,011,171

Revenue 9,488,422 403,179 9,891,601
Profit after tax 997,135 340,528 1,337,663
Other comprehensive income - - -

Cash flows from/(used in) operating activities 948,193 (8,191) 940,002
Cash flows (used in)/from investing activities (92,468) 403,178 310,710
Cash flows used in financing activities (725,000) (821,429) (1,546,429)
Net increase/(decrease) in cash and cash equivalents 130,725 (426,442) (295,717)


(ii) INVESTMENT IN SUBSIDIARIES
Company Investment at Investment Equity Held Equity Held

Cost at Cost
2018 2017 2017 2016
KShs’000 KShs’000 % %
Jubilee Insurance Company of Kenya Limited 450,000 450,000 100% 100%
Jubilee Insurance Company of Tanzania Limited 36,456 36,456 51% 51%
Jubilee Life Insurance Corporation of Tanzania Limited 36,456 36,456 51% 51%
Jubilee Insurance Company of Uganda Limited 12,598 12,598 30% 30%
Jubilee Life Insurance Company of Uganda Limited 12,598 12,598 30% 30%
Jubilee Insurance (Mauritius) Limited 197,467 197,467 70% 70%
Jubilee Investment Company Limited (Uganda) 1,103,707 1,103,707 100% 100%
Jubilee Investment Company Limited (Tanzania) 23,981 23,981 100% 100%
Jubilee Investment Company Limited (Burundi) 1,312 1,312 100% 100%
Total 1,874,573 1,874,573
The Jubilee Investments Company Limited (Uganda) owns 35% equity of both The Jubilee Insurance Company of Uganda Limited and Jubilee
Life Insurance Company of Uganda Limited, and 10% equity of Jubilee Insurance (Mauritius) Ltd. The Group holds 70% of The Jubilee
Insurance Company of Burundi S.A. and Jubilee Life Insurance Company of Burundi S.A., through Jubilee Investments Burundi S.U. (33%),
Jubilee Investment Company Limited (Uganda) (33%) and Jubilee Investments Tanzania Limited (4%). The Group holds 80% of Jubilee Center
Burundi Limited, a property investment company through its subsidiary Jubilee Investments Burundi Limited. The Group holds 100% of Jubilee
Financial Services Ltd, a fund management company, through its subsidiary The Jubilee Insurance Company of Kenya Ltd.
(iii) NON CONTROLLING INTEREST (NCI)

The following table summarizes the information relating to the Group’s subsidiaries that has NCI:
Jubilee Jubilee Jubilee Jubilee Jubilee

Year 2018 Insurance Insurance Insurance Insurance Centre Total
Uganda Tanzania Mauritius Burundi Burundi
NCI percentage 35% 49% 20% 30% 20%
Assets 8,886,589 5,823,468 1,037,636 1,072,632 104,175 16,924,500
Liabilities (5,728,612) (4,544,777) (763,737) (759,305) (11,868,860)

(72,429)
Net assets 3,157,977 1,278,691 273,899 313,327 31,746 5,055,640

Carrying amount of NCI 1,105,293 626,559 54,780 93,998 6,349 1,886,979

Revenue 2,221,879 1,974,502 813,144 183,157 9,723 5,202,405
Profit 665,143 229,625 548 88,077 976,654

(6,739)
OCI (100,707) (116,416) (8,271) (6,043) (1,442) (232,879)
Total comprehensive income 564,436 113,209 (7,723) 82,034 (8,181) 743,775
Profit allocated to NCI 112,516 111 26,423 (1,348) 370,501

232,799
OCI allocated to NCI (35,250) (57,044) (1,653) (1,813) (288) (96,048)
Dividends paid to NCI (65,998) - - - (65,998)

-
Total allocated to NCI 131,551 55,472 (1,542) 24,610 (1,636) 208,455
Cash flows from/(used in) operating activities 1,060,097 367,219 (32,879) 68,543 (6,399) 1,456,581
Cash flows (used in)/from investing activities (797,597) (549,803) (3,071) 43,236 (1,297,608)
9,627
Cash flows used in financing activities (185,186) 12,429 - - - (172,757)
Net increase/(decrease) in cash and cash
77,314 (170,155) (35,950) 111,779 3,228 (13,784)
equivalents

15. INVESTMENT IN ASSOCIATED COMPANIES AND SUBSIDIARIES (CONTINUED)

(iii) NON CONTROLLING INTEREST (NCI) (CONTINUED)
Jubilee Jubilee Jubilee Jubilee

Jubilee Cen-
Year 2017 Insurance Insurance Insurance Insurance Total
tre Burundi
NCI percentage 35% 49% 20% 30% 20%
Assets 7,932,170 6,008,491 982,508 958,748 127,300 16,009,217
Liabilities (5,150,063) (4,843,010) (700,881) (727,452) (87,373) (11,508,779)
Net assets 2,782,107 1,165,481 281,627 231,296 39,927 4,500,438

Carrying amount of NCI 973,738 571,087 56,325 69,389 7,985 1,678,524

Revenue 1,876,845 1,789,178 730,190 139,091 10,975 4,546,279
Profit 578,476 141,857 21,680 67,138 8,576 817,727
OCI 8,391 11,151 30,844 (8,580) (2,289) 39,517
Total comprehensive income 586,867 153,008 52,524 58,558 6,287 857,244
Profit allocated to NCI 202,466 69,510 4,336 20,141 1,715 298,168
OCI allocated to NCI (142,304) 59,017 68,657 26,621 (453) 11,538
Dividends paid to NCI (78,052) (28,917) - - - (106,969)
Total allocated to NCI (17,890) 99,610 72,993 46,762 1,262 202,737
Cash flow from/(used in) operating
1,152,940 496,227 (16,122) 26,476 (6,051) 1,653,470
activities
Cash flow (used in)/from investing activities (721,894) (433,960) (53,589) (367,072) 10,675 (1,565,840)
Cash flow (used in)/from investing activities (223,199) (59,015) - - - (282,214)
Net increase/(decrease) in cash
207,847 3,252 (69,711) (340,596) 4,624 (194,584)
Jubilee Insurance Uganda. Jubilee Insurance Tanzania and Jubilee Insurance Burundi include The Jubilee Insurance Company of Uganda
Limited and Jubilee Life Insurance Company of Uganda Limited, The Jubilee Insurance Company of Tanzania Limited and Jubilee Life
Insurance Corporation of Tanzania Limited, and, The Jubilee Insurance Company of Burundi S.A. and Jubilee Life Insurance Company of
Burundi S.A respectively.
Movement in the non-controlling interest is as follows:
2018 2017
At start of year 1,678,524 1,475,787
Dividend paid to non-controlling interest (65,998) (106,969)
Share of total comprehensive income for the year 274,453 309,706
At end of year 1,886,979 1,678,524
16. INCOME TAX EXPENSE AND DEFERRED INCOME TAX

(i) INCOME TAX EXPENSE
The tax on the Group’s and Company’s profit before income tax differs from the theoretical amount that would arise using the statutory
income tax rate as follows:
Group Company
2018 2017 2018 2017
Profit before income tax 5,410,008 5,160,976 1,233,634 915,006
Tax calculated at the enacted domestic tax rate 30% 1,921,900 1,801,635 370,090 274,502
Tax calculated at the enacted domestic tax rate 15% (10) 4,078 - -
Effect of :
Income not subject to income tax (1,064,196) (1,072,232) (370,881) (288,396)
Expenses not deductible for tax purposes 375,363 205,237 14,866 17,581
Prior year over provision - (8,058) - -
Income tax charge 1,233,057 930,660 14,075 3,687
Current income tax 1,307,327 954,706 14,245 3,928
Deferred income tax (74,270) (24,046) (170) (241)
1,233,057 930,660 14,075 3,687

16. INCOME TAX EXPENSE AND DEFERRED INCOME TAX (CONTINUED)

(ii) TAX MOVEMENT
Movement in the net tax payable/(recoverable) account is as follows:
Group Company
2018 2017 2018 2017
At start of year (71,495) 15,119 (7,661) (10,004)
Taxation charge 1,307,327 954,706 14,246 3,928
Prior year (over)/under provision - (8,058) - -
Taxation paid (1,305,646) (1,041,320) (5,969) (1,585)
At end of year (69,814) (71,495) 616 (7,661)
Group Company
2018 2017 2018 2017
Current income tax asset (174,269) (142,478) - (7,661)
Current income tax liability 104,455 70,983 616 -
Total (69,814) (71,495) 616 (7,661)
(iii) DEFERRED INCOME TAX

Deferred income tax is calculated, in full, on all temporary differences using a principal tax rate of 30% (2017: 30%) in all countries save
for Mauritius where rate is 15%. The movement in the deferred income tax account is as follow:
Group Company
2018 2017 2018 2017
At start of year 8,277 (16,498) 6,034 (4,229)
Recognised in profit or loss (74,270) (24,046) (170) (241)
Recognised in OCI (76,425) 87,589 1,752 10,504
Prior year over provision 14,160 (38,768) - -
At end of year (128,258) 8,277 7,617 6,034
Deferred tax asset (218,099) (191,273) - -
Deferred tax liability 89,841 199,550 7,617 6,034
Net deferred income tax liability/(asset) (128,258) 8,277 7,617 6,034
Deferred income tax assets and liabilities, deferred income tax charge/ (credit) in the profit or loss and to equity is attributable to the
following:
Group Company
1 Jan Charged to Charged 31 Dec 1 Jan Charged to Charged 31 Dec

2018 profit or loss to OCI 2018 2018 profit or loss to OCI 2018
Fair value gains on
122,061 (40,376) - 81,685 - - - -
investment properties
Accelerated depreciation (11,351) (68,729) - (80,080) - - - -
Impairment provisions (96,574) (16,494) - (113,068) - - - -
Other deductible
(5,859) 51,329 (62,265) (16,795) 6,034 (170) 1,752 7,617
temporary differences
Net deferred income
8,277 (74,270) (62,265) (128,258) 6,034 (170) 1,752 7,617
tax liability/(asset)
1 Jan Charged to Charged 31 Dec 1 Jan Charged to Charged 31 Dec

2017 profit or loss to OCI 2017 2017 profit or loss to OCI 2017
Fair value gains on
141,414 (19,431) 78 122,061 - - - -
investment properties
Accelerated depreciation 27,755 (39,046) (60) (11,351) - - - -
Impairment provisions (124,150) 27,576 - (96,574) - - - -
Other deductible
(61,517) (31,913) 87,571 (5,859) (4,229) (241) 10,504 6,034
temporary differences
Net deferred income
(16,498) (62,814) 87,589 8,277 (4,229) (241) 10,504 6,034
tax liability/(asset)

17. UNQUOTED EQUITY INVESTMENTS

Group
FV Through FV Through Total FV Through FV Through Total
P/L OCI P/L OCI
2018 2018 2018 2017 2017 2017

At start of year 3,157,632 200,371 3,358,003 2,805,049 104,875 2,909,924
Additions/transfers 49,529 256,261 305,790 - - -
Disposals/Write-off - - - (33,042) (129) (33,171)
Reclassification FVTPL-FVTOCI 304,144 (304,144) - - - -
Fair value gain through other - 3,669 3,669 - 97,216 97,216
comprehensive income
Fair value gain through profit and loss 839,843 43,248 883,091 385,625 - 385,625
Exchange differences (6,937) (4,792) (11,729) - (1,591) (1,591)
At end of year 4,344,211 194,613 4,538,824 3,157,632 200,371 3,358,003
Valuation of unquoted shares

The Group uses valuation techniques for valuing unquoted shares that are not based on observable market data. The Group reviewed
several valuation techniques and selected a value that is based on discounted cash flow.
Significant unobservable Inter-relationships between unobservable

Valuation technique
inputs inputs and fair value measurements
Expected growth rate of the The estimated fair values would increase/
Discounted cash flows: (decrease) if:
earnings of 7%
The valuation model considers the present value
of net cash flows to be generated by the unquoted Expected earnings and cash flows growth were
Discount rate used on the
entities. The net cash flows are discounted using the higher /(lower)
expected cashflow – 13.34%
risk adjusted discount rate.
(2017: 14.18%) Risk-adjusted discount rate was lower / (higher)
Unquoted shares are valued using values of similar or comparable entities which are publicly listed. Where similar or comparable information
is not available, the unquoted shares are valued by taking the average of;
(a) Discounted cashflows of the expected future cashflows; and
(b) Share of net assets at the end of period.
The following table sets out the key assumptions used by management in the value in use calculations:
Assumption 2018 2017

Discount rate 13.34% 14.18%
Growth rate 7% 7%
Management has determined the values assigned to each of the key assumptions used as follows:
Assumption Approach used to determine values:

Discount rate Based on risk free rate and a specific margin based on the industry.
Growth rate This is the projected long term inflation rate in Kenya.
Impact of possible changes in key assumptions

If the discount rate applied on the cash flow projections had been 1% higher/lower than management’s estimate at 31 December 2018 with all
other assumptions unchanged, the impact to profit or loss would have been KShs 321 million and KShs 277 million lower and higher respectively.
If the growth rate applied on the cash flow projections had been 1% higher/lower than management’s estimate at 31 December 2018 with all
other assumptions unchanged, the impact to profit or loss would have been KShs 299 million and KShs 264 million higher and lower respectively.
Company
FV Through OCI FV Through OCI
2018 2017
At start of year 65,630 27,599
Disposal - (128)
Fair value gain through other comprehensive income 3,669 38,159
At end of year 69,299 65,630

18. GOVERNMENT SECURITIES AT AMORTISED COST AND FAIR VALUE THROUGH PROFIT OR LOSS
Group
Movement FV Through P/L Amortized Amortized

cost cost
2018 2018 2017
At start of year - 47,195,222 39,666,112
Additions 1,125,288 9,813,628 9,434,190
Maturities (384,674) (4,028,673) (1,874,532)
Reclassification from amortized cost to fair value through profit or loss 8,879,604 (8,879,604) -
Fair value gains/(losses) through profit or loss 351,558 - -
Accrued interest 293,033 1,025,459 -
Exchange differences - (122,874) (30,548)
Total at the end of the year 10,264,809 45,003,158 47,195,222
Expected Credit Loss - (27,340) -
Net 10,264,809 44,975,818 47,195,222
Maturity Profile
Treasury bills maturing within 91 days after the date of acquisition - 3,284,101 2,693,315
Treasury bills maturing after 91 days after the date of acquisition - 116,188 339,123
Treasury bonds maturing within 1 year - 1,653,327 4,591,298
Treasury bonds maturing in 1-5 years - 10,435,213 10,842,382
Treasury bonds maturing after 5 years - 29,486,987 28,729,104
Total - 44,975,816 47,195,222
Treasury bonds of KShs 5.5 billion (2017: KShs 3.7 billion) are held under lien with the Central Bank of Kenya as security deposit in favor
of the Insurance Regulatory Authority as required under the provisions of Section 32 of Kenya Insurance Act, an equivalent of KShs 27.4
million (2017: KShs 25.6million) are held under lien with the Bank of Uganda as security deposit in favor of the Insurance Regulatory
Authority Uganda as required under the provisions of section 38 (3) of Uganda Insurance Act and an equivalent of KShs 106.3 million
(2017: KShs 141.2 million) are held under lien with the Bank of Tanzania as security deposit in favor of the Tanzania Insurance Regulatory
Authority as required under the provisions of Tanzania Insurance Act.
In Kenya a further KShs 350 million (2017: KShs 200 million) worth of Treasury Bonds were held under lien with Diamond Trust Bank Limited
as security for Bank overdraft facility, Guarantees and Letters of Credit facility for KShs 359 Million (2017: KShs 200 million)
19. COMMERCIAL BONDS AT AMORTISED COST AND FAIR VALUE THROUGH PROFIT OR LOSS
Group
Movement FV Through P/L Amortized cost Amortized cost

2018 2018 2017
At start of year - 904,007 1,423,678
Reclassification to fair value through profit or loss 39,185 (39,185) -
Fair value change on reclassification from amortized cost (725) - -
Additions - 11,814 20,609
Maturities - (72,892) (540,280)
Total 38,460 803,744 904,007
Expected Credit Loss - (805) -
Net 38,460 802,939 904,007
Maturity profile
Commercial bonds maturing
Within 1 year 13,549 279,792 -
In 1-5 years 24,911 523,952 904,007
Total 38,460 803,744 904,007

20. LOANS RECEIVABLE

(i) Group
i) Mortgage loans 2018 2017

Movement KShs ‘000 KShs ‘000
Loans advanced 21,044 75,974
Accrued interest and penalties 5,628 7,201
Provision for impairment (365) (540)
Loan repayments (68,540) (52,731)
Exchange differences (764) (675)
At end of year 66,101 109,098
Maturity profile
Loans maturing
Within 1 year 22,336 21,275
In 1-5 years 16,982 19,070
In over 5 years 26,783 68,753
Total 66,101 109,098
(ii) Group
ii) Loans on life insurance policies 2018 2017
Movement KShs ‘000 KShs ‘000
Loans advanced 170,626 167,638
Interest 60,513 51,032
Loan repayments (86,169) (146,003)
Exchange differences (2,215) (76)
At end of year 931,713 788,958
Maturity profile
Loans maturing
Within 1 year 48,231 119,902
In 1-5 years 263,868 439,185
In over 5 years 619,614 229,871
Total 931,713 788,958
21. QUOTED EQUITY INVESTMENTS
FV Through FV Through FV Through FV Through

Total Total
P/L OCI P/L OCI
2018 2018 2018 2017 2017 2017
At start of year 6,853,603 1,276,691 8,130,294 4,644,331 983,598 5,627,929
Additions 182,973 - 207,111 9,620 97,190 106,810
Disposals (133,504) (70,916) (204,420) (115,194) - (115,194)
Reclassification from fair
value through profit or loss
(766,843) 766,843 - - - -
to fair value through other
comprehensive income
Fair value gain/(loss) through
- (348,043) (348,043) - 195,682 195,682
other comprehensive income
Fair value loss/(gain) through
(1,214,788) - (1,214,788) 2,314,846 - 2,314,846
profit or loss
Exchange differences 24,138 (6,847) (6,847) - 221 221
At end of year 4,945,579 1,617,728 6,563,307 6,853,603 1,276,691 8,130,294

21. QUOTED EQUITY INVESTMENTS (CONTINUED)

Company
FV Through OCI FV Through OCI

2018 2017

Additions - 11,541
Fair value gain through other comprehensive income 3,135 (3,145)
At end of year 23,405 20,270
22. RECEIVABLES ARISING FROM DIRECT AND RE-INSURANCE ARRANGEMENTS

Receivables arising out of direct insurance and re-insurance arrangements are summarized as follows:
Direct Insurance Arrangements Reinsurance Arrangements

2018 2017 2018 2017
Neither past due nor impaired 2,241,441 2,447,810 1,396,006 872,614
Past due but not impaired 1,816,743 1,756,985 1,797,159 2,199,186
Impaired 818,345 675,813 132,384 9,610
Gross 4,876,529 4,880,608 3,325,549 3,081,410
Less: provision for impairment (823,627) (675,813) (132,383) (9,610)
Net 4,052,902 4,204,795 3,193,166 3,071,800
Movements for provisions for impairment are as follows:
2018 2017 2018 2017

At start of year 675,813 662,330 9,610 9,610
Increase in the year 147,814 117,639 122,773 -
Write-backs in the year - (104,156) - -
At end of year 823,627 675,813 132,383 9,610
Of the total gross impaired receivables, the following amounts have been individually assessed:
2018 2017 2018 2017

Individually assessed impaired receivables KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000
- brokers 511,845 417,146 41,258 2,995
- agents 180,243 143,432 - -
- insurance companies 12,299 16,476 91,125 6,615
- direct clients 119,240 98,759 - -
Total 823,627 675,813 132,383 9,610

23. REINSURERS’ SHARE OF INSURANCE CONTRACT LIABILITIES AND DEFERRED ACQUISITION COSTS
(i) Reinsurers’ Share Of Insurance Contract Liabilities
2018 2017
Reinsurers’ share of: KShs ‘000 KShs ‘000
- Unearned premium (Note 28) 3,042,850 3,089,500
- Notified claims outstanding and IBNR (Note 36) 2,961,584 4,161,063
Total 6,004,434 7,250,563
Amounts due from reinsurers in respect of claims already paid by the Group on contracts that are reinsured are included in receivables
arising out of reinsurance arrangements in the statement of financial position.
(ii) Deferred Acquisition Costs
2018 2017
Net increase/(decrease) 38,353 (80,752)
Exchange differences 805 6,042
At end of year 186,290 147,132
24. OTHER RECEIVABLES
Group Company
2018 2017 2018 2017
Deposits - Office rent and utilities 58,212 96,857 - -
Prepayments 488,634 193,116 - -
Recoverable advances 14,194 7,566 - -
Dividends receivable 55,199 154,083 - 108,705
Advance medical payment - 86,725 - -
Sundry debtors 779,994 542,295 134,517 1,211
Total 1,396,233 1,080,642 134,517 109,916
Sundry debtors includes staff loans, third party fund recoverable and deposits paid on rental offices among others.

25. (i) DEPOSITS WITH FINANCIAL INSTITUTIONS
Group Company
2018 2017 2018 2017
Maturity Profile
Deposits maturing within 90 days after balance sheet date 8,992,396 8,408,173 919,427 250,098
Deposits maturing between 3 months to 1 year 2,323,021 2,177,424 - -
Total 11,315,417 10,585,597 919,427 250,098
25. (ii) CASH AND CASH EQUIVALENTS

The year-end cash and cash equivalents comprise the following:
Group Company
2018 2017 2018 2017
Cash and bank balances 2,588,451 1,517,872 89,292 22,898
Short-term deposits with banks 11,315,417 10,585,597 919,427 250,098
Treasury bills maturing within 91 days after the date of acquisition 3,284,101 2,693,315 - -
Total 17,187,969 14,796,784 1,008,719 272,996
25. (iii) OPERATING CASH FLOW

Group
2018 2017
Profit before income tax 5,410,008 5,160,970
Adjustments for: -
Depreciation and amortisation 168,305 145,186
Fair value gains/(losses) on financial assets at fair value through profit and loss 374,945 (2,700,471)
Fair value gain on investment properties (185,067) (238,119)
Net fair value gains on disposal 91,364 1,756
Interest and other income (7,938,735) (6,340,693)
Dividend receivable (202,370) (243,887)
Fee income - (413,352)
Rental income (394,562) (341,065)
Share of result of associates after income tax (1,339,513) (1,182,702)
Operating profit before working capital changes (4,015,625) (6,152,377)
Receivables arising out of direct insurance arrangements 151,895 605,959
Receivables arising out of reinsurance arrangements (121,366) (266,009)
Reinsurers’ share of insurance contract liabilities 1,246,129 (358,603)
Deferred acquisition costs (39,158) 74,708
Other receivables (315,590) 160,422
Insurance contract liabilities 591,381 4,702,443
Payable under deposit administration contracts 5,524,666 6,639,336
Unearned premium reserve 54,384 (1,137,587)
Creditors arising out of direct insurance arrangements (124,229) 32,706
Creditors arising out of reinsurance arrangements (181,058) 670,669
Other payables 544,181 84,721
Cash generated from operations 3,315,610 5,056,388

26. INSURANCE CONTRACT LIABILITIES
2018 2017
Short-Term insurance contracts
Claims reported and claims handling expenses 4,606,641 5,870,122
Claims incurred but not reported (IBNR) 1,428,307 1,902,151
Total Short-Term 6,034,948 7,772,273
Long-Term insurance contracts
Claims reported and claims handling expenses 947,106 1,007,119
Actuarial value of long term liabilities 18,557,023 16,204,112
Total Long-Term 19,504,129 17,211,231
Total Short-Term and Long-Term 25,539,077 24,983,504
Gross claims reported, claims handling expense liabilities and the liability for claims incurred but not reported are net of expected recoveries
from salvage and subrogation. The expected recoveries at the end of 2018 and 2017 are not material.
The Group uses chain-ladder techniques to estimate the ultimate cost of claims and the IBNR provision. Chain ladder techniques are used as
they are an appropriate technique for mature classes of business that have a relatively stable development pattern. This involves the analysis
of historical claims development factors and the selection of estimated development factors based on this historical pattern. The selected
development factors are then applied to cumulative claims data for each accident year that is not fully developed to produce an estimated
ultimate claims cost for each accident year.
Movements in insurance liabilities and reinsurance assets are shown in Note 36.
Short – Term Insurance contracts

The development of insurance liabilities provides a measure of the Group’s ability to estimate the ultimate value of claims. The table below
illustrates how the group’s estimate of total claims liability for each accident year has changed at successive year-ends.
2014
Accident year 2015 2016 2017 2018 Total
and prior
Estimate of ultimate

claims cost
at end of accident year 10,806,567 10,561,258 13,466,501 10,523,172 11,220,203 56,577,701
one year later 8,904,027 10,249,399 12,648,280 8,705,701 - 40,507,407
two years later 7,697,148 8,830,345 10,570,068 - - 27,097,561
three years later 7,811,372 8,839,178 - - - 16,650,550
four years later 7,973,509 - - - - 7,973,509
Incurred per accident year 7,973,509 8,839,178 10,570,068 8,705,701 11,220,203 47,308,659
Less: cumulative payments to
(7,629,413) (8,630,458) (10,284,227) (6,964,418) (7,471,308) (40,979,824)
date
Total gross claims
liability included in the
344,096 208,720 285,841 1,741,283 3,748,895 6,328,835
statement of financial
position before IBNR
Incurred but not reported
(8,872) (5,379) (134,593) (46,045) 401,957 207,068
(IBNR)
Total gross claims
liability included in the
335,224 203,341 151,248 1,695,238 4,150,852 6,535,903
statement of financial
position

26. INSURANCE CONTRACT LIABILITIES (CONTINUED)

Long-term insurance contracts
The Group determines its liabilities on long term insurance contracts based on assumptions in relation to future deaths, voluntary terminations,
investment returns and administration expenses. The cash flows for each individual policy were projected on monthly intervals, till natural
expiry of the policies. A margin for risk and uncertainty is added to these assumptions. The liabilities are determined on the advice of the
consulting actuary and actuarial valuations carried out on a quarterly basis.
Valuation assumptions
The latest actuarial valuation for the long-term business was carried out as at 31 December 2018 by Actuarial Partners Consultants. Two
valuation methods were applied, the Net Premium Value (NPV) for entities outside Kenya and the Gross Premium Valuation (GPV), for The
Jubilee Insurance Company of Kenya Limited long-term fund valuation. The change in valuation method in Kenya from NPV to GPV was in
compliance with the directive given by the Kenyan Insurance Regulator, and was effected for in the 2015 valuations and the period thereafter.
The Gross Premium Valuation (GPV) is accepted in the actuarial industry as an appropriate method to place a realistic value (with an
appropriate allowance for margins) on the liabilities of a life insurance company. This method is based on a discounted cash flow approach
taking into account the expected cash flows from existing in-force business. By setting appropriate assumptions this method determines
liabilities which are consistent with the value of assets included in the accounts.
The more significant valuation assumptions are summarised below per country. The assumptions used for the previous year-end valuation
are shown in brackets:
Kenya
a) Mortality - The Company used KE 07-10 as a base table of standard mortality for ordinary life and KE 01-03 for annuity life. Statistical
methods are used to adjust the rates reflected in the table based on the Company’s experience for ordinary life and annuity life (2016:
KE 07-10 for Ordinary Life and KE 01-03 for Annuity Life).

b) Persistency - The persistency rates used in the valuation were set according to the experience observed (by the actuary) in the Company’s
data.

c) Discount Rates - As per the valuation guideline, the expected future cash flows shall be discounted using the relevant risk-free interest
rate. The risk free interest rate is determined using the Nairobi Securities Exchange yield curve as at December 2018 and has been
converted to zero coupon yield which ranged from 10.23% to 15.59%. The discount rate is further adjusted by a risk margin of 10%
(2017:15%).
Given the higher solvency requirement to apply a 20% risk margin on the discount rate, by Kenyan Insurance Act, the difference
between the 10% and 20% risk margin has been offset as an appropriation of retained earnings to statutory reserves in the Statement
of Financial Position. The impact of the difference between 10% and 20% risk margin is KShs 1, 377,467,000.

d) Expenses, tax and inflation - The current level of renewal expenses were taken based on the current expense position of the company.
Expense inflation is assumed to be 6.4% p.a. (2017:5.8% p.a.). It has been assumed that the current tax legislation and rates continue
unaltered.
Uganda
The principles on which the valuation was made were determined by the Actuary having regard for the statutory requirements of Uganda
Insurance Regulations 2002.
For Ordinary Life, the valuation was based on a net premium valuation (NOV) basis. The actuarial reserves were calculated using the ‘full
preliminary term’ method with reserves calculated by deducting the present value of the future modified net premiums from the present value
of the sums assured, guaranteed cash bonuses and accrued bonuses.
The assumptions under the NPV are as follows:
– Mortality: 100% KE 2007-10

– Discount rate: 4% p.a
The group life plans a reserve equal to the higher of unexpired risks and the unearned portion of the office premium was held on a 1/365th
methodology. An additional reserve for Incurred But Not Reported (IBNR) claims was also held.
Liability adequacy Test (LAT)

A liability adequacy test has been performed by computing the reserve base don a gross premium valuation methodology (GPV) to ensure
the adequacy of the statutory reserves under the NPV basis. Under the GPV basis, the cash flows for each individual policy were projected
on monthly intervals, till natural expiry of the policies. Expenses, commission, claims and premiums were included in the projection.


Valuation assumptions (Continued)
Uganda (Continued)
In performing valuation using the GPV methodology, the entity adopted the Best Estimate assumptions which are derives from the Company’s
experience as follows:
• Mortality and morbidity – The assumptions are derives based on the Company’s experience with partial credibility theory as follows:
Type of policy Mortality Table

All other assurances 93% KE 2007-2010 for assured lives for males
96% KE 2007-2010 for assured lives for females
Total Permanent Disability 10% of the mortality assumptions above.
• Management expense – The assumption was calculated based on the Company’s actual management expenses in 2018 as follows:
Ordinary Life
Expenses Per Policy (UShs) % of Premium
Maintenance Expenses 147,672 1.05%
• Discount rate – The discount rate for Ordinary Life set at 13.3% was derived based on the current asset mix and expected return for
each type of asset.
Tanzania
The Company determines its liabilities on long term insurance contracts based on the assumptions in relation to future deaths, voluntary
terminations, investment returns and administration expenses. The cash flows for each individual policy were projected on monthly intervals,
till natural expiry of the policies. A margin of risk and uncertainty is added to these assumptions. The liabilities are determined on the advice
of the consulting actuary and actuarial valuations carried out on an annual basis.
Set out below are the general principles and details of the methods adopted in the valuation of the policies:
a) Except for the polices mentioned below, Actuarial Reserves were calculated using the ‘full preliminary term’ method with reserves
calculated by deducting the present value of the future modified net premiums from the present value of the sums assured, guaranteed
cash bonuses and accrued bonuses.
Group Temporary Assurance, as reserve equal to the unearned portion of the office premium was held on a 1/365th methodology. An
additional reserve for Incurred But Not Reported (IBNR) claims was also held. There are some Group Temporary Assurance policies with
a policy term greater than one year (up to 5 years). For these plans the entity tested to ensure the basis used is more conservative than the
prescribed basis.
b) Ordinary Life Business – The modified net premium was taken as the ‘pure’ net premium for an age one year higher than the actual age
entry without changing the time when premiums cease or any policy money becomes payable if such time is determined by reference
to the actual age entry. Actual premium terms and maturity dates were taken as set out in the policies.
Valuation Assumptions
The more significant valuation assumptions are summarized below:
Financial Assumptions 2018 Rate

2007-2010 10 mortality tables (of neighboring country) 100%
Inflation rate 5.1% per annum
Return On Investment 4.0% per annum


Valuation assumptions (Continued)
Tanzania (Continued)
Demographic assumptions
(i) The Company used mortality tables for a neighboring East African Country as a base table of standard mortality for assured individual
life. The average assumed mortality rate is 6.38%. The mortality table is used to estimate among other things the life expectancy for the
estimation of when the sum assured are expected to be paid. Statistical methods are used to adjust the rates reflected in the table based
on the Company’s experience for Ordinary Group Life.

(ii) Entry date was taken as the next birthday date.
As an alternative, gross valuation basis was also calculated. The policy liabilities calculated on a net premium basis was higher than
that calculated on the gross premium basis and therefore the net premium valuation results were used for Ordinary Life business in line
with the group accounting policy.
Sensitivity analysis
The following table presents the sensitivity of the value of long term insurance liabilities to movements in key assumptions used in the
estimation process. For liabilities under insurance contracts with fixed and guaranteed terms, key assumptions are unchanged for the
duration of the contract.
For long term insurance contracts without fixed terms and with discretionary participation in profits, the liability is set approximately
equal to the value of the underlying asset of the contract. Hence, there is no sensitivity analysis for these types of contracts. The following
table presents the sensitivity of these contracts to movements in key assumptions used in the estimation of liabilities:
Increase in Liability
2018 2017
Variables:
Worsening of mortality +20% 351,128 280,411
Lowering of investment returns p.a. -1% 959,399 829,335
Worsening of expense inflation rate +1% 64,909 56,680
Worsening of lapse rate +5% (34,243) (23,437)
We have not included the valuation assumptions nor performed a sensitivity analysis for the non-Kenyan entities as the change within the
long-term liabilities would not be material.

27. PAYABLE UNDER DEPOSIT ADMINISTRATION CONTRACTS (GROUP)
2018 2017
At start of year 42,214,336 35,988,354
Pension fund deposits received 7,851,910 6,882,633
Surrenders and annuities paid (5,822,062) (4,806,355)
Fee income charged (372,061) (413,352)
Net benefits accrued 3,903,232 4,580,458
Exchange differences (36,353) (17,402)
At end of year 47,739,002 42,214,336
Deposit administration contracts are recorded at amortized cost.
28. UNEARNED PREMIUM REVENUE

Group
These provisions represent the liability for short-term business contracts where the Group’s obligations are not expired at the year-end.
Movements are shown below:
2018 2017
At start of year 7,571,212 (3,089,500) 4,481,712 8,708,799 (3,019,300) 5,689,499
Increase in the period (net) 177,552 77,723 255,275 (1,114,822) (113,857) (1,228,679)
Exchange differences (123,168) (31,073) (154,241) (22,765) 43,657 20,892
At end of year 7,625,596 (3,042,850) 4,582,746 7,571,212 (3,089,500) 4,481,712
29. OTHER PAYABLES
Group Company
2018 2017 2018 2017

Payroll liabilities 15,472 37,333 - -
Value added tax payable 155,582 351,407 - -
Withholding taxes payable 112,697 127,234 - -
Other liabilities 1,504,541 725,495 9,705 1,774
Leave pay accrual 112,231 59,567 8,712 8,615
Accrued expenses 391,247 429,066 3,389 2,596
Premium deposits 140,659 157,872 - -
Rental deposits 107,215 107,494 - -
Total 2,539,644 1,995,468 21,806 12,985
*Other liabilities includes deferred rental income and valuations fees among others.

30. SHARE CAPITAL

The total authorized number of ordinary shares is 90,000,000 (2017: 90,000,000) with a par value of KShs 5 per share. At 31 December
2018 72,472,950 ordinary shares were in issue (2017: 72,472,950 ordinary shares). All issued shares are fully paid.
Group and Company

Share Capital Share Capital Number of Number of
shares shares
2018 2017 2018 2017
KShs ‘000 KShs ‘000 ‘000 ‘000
Authorised 450,000 450,000 90,000 90,000
Issued and fully paid:
At start of year 362,365 329,423 72,473 65,885
Bonus issue of shares - 32,942 - 6,588
At end of year 362,365 362,365 72,473 72,473
All shares rank equally with regard to the company residual assets. The holders of ordinary shares are entitled to receive dividends as
declared from time to time and are entitled to one vote per share at meetings of the Company.
31. RESERVES
The breakdown of reserves is as follows:
Group Company
2018 2017 2018 2017
Fair value reserves 214,967 337,751 36,409 31,357
General reserves 70,000 70,000 70,000 70,000
Translation reserves (943,724) (546,820) - -
Contingency reserves 1,233,277 1,050,993 - -
Statutory and other reserves 3,598,306 2,185,073 - -
Total 4,172,826 3,096,997 106,409 101,357
The movement in the reserves during the year is given below:

a) Fair value reserves
Group Company
2018 2017 2018 2017
At start of year 337,751 104,458 31,357 6,847
Transfer of reserves on adoption of IFRS 9 6,868 - - -
Associate share of other comprehesive income 195,071 47,219 - -
Fair value (loss)/gain through other comprehensive income (294,482) 186,074 5,052 24,510
Translation (loss)/gain (30,241) - - -
At end of year 214,967 337,751 36,409 31,357
The fair value reserve relates to unrealized gains or losses on the Group’s equity investments that are carried at fair value through other
comprehensive income. It also include the Group’s share of other comprehensive income in associates. The fair value reserve is non-
distributable.
b) General reserves
Group and Company

2018 2017
At start and end of year 70,000 70,000
The general reserves were an appropriation of retained earnings in 1992, and are distributable.

31. RESERVES (CONTINUED)

c) Translation reserve (Group)
2018 2017
At start of year (546,820) (554,086)
Movement for the year (396,904) 7,266
At end of year (943,724) (546,820)
The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations.
Contingency reserve (Group)
2018 2017
At start of year 1,050,993 964,042
Transfer from retained earnings 182,284 86,951
At end of year 1,233,277 1,050,993
The contingency reserve is in line with the provisions of the Insurance Act in Tanzania and Uganda which require an annual transfer to the
contingency reserve of between 1% - 3% of the gross premium. These reserves are non-distributable.
d) Statutory and other reserves (Group)
2018 2017
At start of year 2,185,073 2,185,073
Transfer from retained earnings 1,413,233 -
At end of year 3,598,306 2,185,073
The statutory reserve represents the actuarial surplus of the Kenyan long-term business after distribution of profits to the shareholders,
bonuses to policy holders and interest to deposit administration. These reserves are distributable to policyholders and deposit administration
holders subject to the requirement of regulation. The Statutory Reserve includes KShs 1,377,467,000 which is an amount set aside for
additional provision for insurance contract liabilities required to comply with the requirements of the Insurance Regulatory Authority.
32. RETAINED EARNINGS
Group Company
2018 2017 2018 2017
At start of year 20,092,764 16,352,839 1,671,128 865,224
Profit for the year 3,806,450 3,932,142 1,219,559 911,319
Other movements (38,008) (106,820) - -
Transfer to contingency reserve (182,284) (86,951) - -
Transfer to statutory reserve (1,377,468) - - -
Bonus issue - (32,942) - (32,942)
Dividend paid to non-controlling interest - 106,969 - -
Interim dividend (72,473) (72,473) (72,473) (72,473)
Dividend Paid (579,784) - (579,784) -
At end of year 21,649,197 20,092,764 2,238,430 1,671,128

33. DIVIDENDS
(i) PROPOSED DIVIDEND
Proposed dividend is accounted for as a separate component of equity until ratified at an Annual General Meeting. During the year, an
interim dividend of KShs 72.473 million was paid (2017: KShs 72.473 million) or KShs 1.00 per share (2017: KShs 1.00 per share). At
the Annual General Meeting to be held on 25 June 2019, a final dividend of KShs 579.784 million (2017: KShs 579.784 million) is to
be proposed, which is KShs 8.00 per share (2017: KShs 8.00 per share). The total dividend for the year 2018 is therefore KShs 652.257
million (2017: KShs 652.257million) or KShs 9.00 per share (2017: KShs 9.00 per share).
Payment of dividend is subject to withholding tax at the rate of either 0%, 5% or 10%, depending on the percentage shareholding and/or
residential status of the respective shareholders.
(ii) DIVIDENDS PAYABLE
2018 2017
Dividends declared within the year 652,257 566,606
Dividend paid within the year (590,140) (522,945)
At end of year 431,293 369,176
34. CONTINGENT LIABILITIES, COMMITMENTS AND OFF BALANCE SHEET ITEMS

The Group’s companies are subject to litigation arising in the normal course of business. The Directors are of the opinion that these
litigations will not have a material effect on the financial position or profits of the Group. The Group does not have any material outstanding
commitments.
The Group engages various service providers for purchase of capital items. The engagement is normally contractual either through Purchase
Orders or Service Level Agreements. The Group did not have any contractual commitments as the end of the year (2017: nil).
35. RELATED PARTY TRANSACTIONS

The largest shareholder of the Group is the Aga Khan Fund for Economic Development S.A., a company incorporated in Switzerland. There
are various other companies related to Jubilee Holdings Limited through common shareholdings or common directorships. In the normal
course of business, insurance policies are sold to related parties at terms and conditions similar to those offered to major clients. Related
parties rendered various services to the Group during the year.
Transactions with related parties (Group) 2018 2017

Gross premium: KShs ‘000 KShs ‘000
Diamond Trust Bank Limited 436,469 370,003
Industrial Promotion Services (Kenya) Limited 17,562 128,788
TPS Eastern Africa Limited 19,906 238,059
Property Development and Management Limited 16,006 33,573
Nation Media Group 103,827 148,837
Total 593,770 919,260
Net claims incurred:
Total 343,743 422,184
Services received from:
Industrial Promotion Services (Kenya) Limited - 53
Total 5,451 14,209

35. RELATED PARTY TRANSACTIONS (CONTINUED)
2018 2017
Outstanding premium:
TPS Eastern Africa Limited (4,334) 700
Total 110,323 90,293
Outstanding claims:
Industrial Promotion Services (Kenya) Limited 785 19,158
TPS Eastern Africa Limited 2,398 256
Property Development and Management Limited 330 1,555
Total 74,941 80,301
Deposits with financial institutions
Diamond Trust Bank Limited 5,761,107 6,027,433
Total 5,761,107 6,027,433
Interest received from financial institutions
Total 397,650 298,327
Outstanding premium and claims balances arose out of the normal course of business and are payable within one year.
Transactions with related parties (Company) 2018 2017

Due from related parties:
Jubilee Insurance (Mauritius) Limited 860 860
Jubilee Investment Company Limited (Tanzania) 11,463 -
Jubilee Insurance Company of Burundi Limited 24,241 20,917
Jubilee Insurance Company of Kenya Limited - 23,190
Jubilee Investment Company Limited (Burundi) 60,620 60,620
Total 97,184 105,587
Due to related parties
Jubilee Insurance Company of Kenya Limited 140,369 -
Jubilee Investment Company Limited (Tanzania) - 20,689
Jubilee Investment Company Limited (Uganda) 126,966 137,916
Total 267,335 158,805
Net owing (170,151) (53,218)
Transactions with related parties (Company) 2018 2017

Borrowings from related parties
Jubilee Investment Company Limited (Uganda) 623,807 630,315
Jubilee Investment Company Limited (Uganda) loaned USD 6.125 million to Jubilee Holdings Limited at the end of 2016, to settle inter-
company balances owed to The Jubilee Insurance Company of Kenya Limited. The loan attracts an interest at 0.45% per annum.

36. MOVEMENTS IN INSURANCE LIABILITIES AND REINSURANCE ASSETS

Group
Short-term insurance business 2018 2017
KShs ‘000 KShs’000 KShs ‘000 KShs ‘000 KShs’000 KShs ‘000
Notified claims 5,870,122 (623,796) 5,246,326 5,766,775 (2,846,851) 2,919,924
Incurred but not reported 1,902,151 (763,456) 1,138,695 1,675,727 (701,204) 974,523
Total at start of year 7,772,273 (1,387,252) 6,385,021 7,442,502 (3,548,055) 3,894,447
Cash paid for claims settled during the
(13,054,096) (924,706) (13,978,802) (12,698,614) 4,833,470 (7,865,144)
year
Increase in liabilities: -
Arising from current year claims 8,805,445 (839,144) 7,966,301 8,090,988 (2,973,447) 5,117,541
Arising from prior year claims 2,511,326 (352,270) 2,159,056 4,937,397 (2,199,220) 2,738,177
Total at end of year 6,034,948 (3,503,372) 2,531,576 7,772,273 (3,887,252) 3,885,021
Notified claims 4,606,641 (2,936,435) 1,670,206 5,870,122 (3,065,612) 2,804,510
Incurred but not reported 1,428,307 (566,937) 861,370 1,902,151 (821,640) 1,080,511
Total at end of year 6,034,948 (3,503,372) 2,531,576 7,772,273 (3,887,252) 3,885,021
Long-term Ordinary Group Ordinary
insurance business Life Life Annuity Total Life Group Life Annuity Total
2018 2018 2018 2018 2017 2017 2017 2017
KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000
At the Start of the year 7,603,775 1,139,193 8,235,398 16,978,366 5,732,257 1,267,165 5,682,911 12,682,333
Claims, surrenders
and annuity payments (1,448,083) (270,394) (959,406) (2,677,883) (1,149,119) (654,329) (808,816) (2,612,264)
Increase/(decrease)
in the period 884,255 (66,746) 232,362 1,049,871 479,240 453,128 (1,021,283) (88,916)
New business 584,674 122,989 687,578 1,395,241 613,722 96,322 1,779,954 2,489,998
Change in actuarial
reserves 1,814,410 (108,928) 580,708 2,286,190 1,886,940 (66,524) 2,552,488 4,372,904
At the end of the year 9,439,031 816,114 8,776,640 19,031,785 7,563,041 1,095,761 8,185,254 16,844,055

KShs ‘000 KShs’000 KShs ‘000 KShs ‘000 KShs’000 KShs ‘000
Notified claims 947,106 (268,754) 678,352 1,007,119 (273,811) 733,308
Actuarial value of policy holders benefits 18,557,023 - 18,557,023 16,204,112 - 16,204,112
Total at end of year 19,504,129 (268,754) 19,235,375 17,211,231 (273,811) 16,937,420
37. OPERATING LEASES

Lease as lessee
The Group leases offices for some of its branches and agency operations under operating lease agreements which run for a period of two
to six years with an option of renewal after expiry. The Group is restricted from entering into any sublease arrangements.
At 31 December 2018, the future minimum lease payments under non-cancellable operating leases were payable as follows:
Lease as a Lessee 2018 2017
Within one year 11,517 34,505
Later than one year and not later than five years 18,659 55,903
Amount payable later than five years 14,540 43,562
44,716 133,970
During the year ended 31 December 2018, KShs 305 million (2017: KShs 194 million) was recognized as rent expense in profit or loss.
(ii) Lease as lessor
The Group leases out its investment property (Note 17) to various tenants under operating lease agreements which run for a period of two
to six years with the option to renew after expiry. The Group does not enter into any sublease arrangements.
Lease as a Lessor 2018 2017

Within one year 100,743 244,658
Later than one year and not later than five years 483,163 1,173,383
Amount payable later than five years 3,104 7,538
587,010 1,425,579
At 31 December 2018, the future minimum lease payments under non-cancellable operating leases were receivable as follows:
During the year ended 31 December 2018, KShs 395 million (2017: KShs 341 million) was recognized as rental income in profit or loss in
respect of the investment property, after netting of management expenses of KShs 202 million (2017: KShs 175 million).
See Note 38.11 for the accounting policy in leases.

38. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

38.1. BASIS OF PREPARATION
The financial statements are prepared in compliance with International Financial Reporting Standards (IFRS) and the manner required by the
Kenyan Companies Act, 2015. The measurement basis applied is the historical cost basis, except where otherwise stated in the accounting
policies below. The financial statements and have been prepared on a going concern basis and are presented in Kenya Shillings (KShs),
rounded to the nearest thousand, unless otherwise indicated.
New Standards, amendments and interpretations to existing standards that are effective and adopted in the 2018 annual financial
statements
The Group has adopted the following new standards and amendments during the year ended 31 December 2087, including consequential
amendments to other standards with the date of initial application by the Group being 1 January 2018. The nature and effects of the
changes are explained below:
New standard or amendments Effective for annual periods

beginning on or after
Revenue from contracts with customers (IFRS 15) 1 January 2018
Financial instruments (IFRS 9) 1 January 2018
Applying IFRS 9 financial instruments with IFRS 4 insurance contracts (Amendments to IFRS 4) 1 January 2018
IFRIC 22 foreign currency transactions and advance consideration 1 January 2018
Classification and measurement of share based payment transactions (Amendments to IFRS 2) 1 January 2018
Transfers of Investment Property (IAS 40) 1 January 2018
IFRS 15 Revenue from Contracts with Customers
This standard replaces IAS 11 Construction Contracts, IAS 18 Revenue, IFRIC 13 Customer Loyalty Programmes, IFRIC 15 Agreements for the
Construction of Real Estate, IFRIC 18 Transfer of Assets from Customers and SIC-31 Revenue – Barter of Transactions Involving Advertising
Services.
The standard contains a single model that applies to contracts with customers and two approaches to recognising revenue: at a point in time
or over time. The standard specifies how and when an IFRS reporter will recognise revenue as well as requiring such entities to provide users
of financial statements with more informative, relevant disclosures.
The standard provides a single, principles based five-step model to be applied to all contracts with customers in recognising revenue being:
Identify the contract(s) with a customer; identify the performance obligations in the contract; determine the transaction price; Allocate the
transaction price to the performance obligations in the contract; and recognise revenue when (or as) the entity satisfies a performance
obligation.
The adoption of these changes did not have a significant effect on the amounts and disclosures of the Group’s financial statements.
IFRS 9: Financial Instruments
On 24 July 2014 the IASB issued the final IFRS 9 Financial Instruments Standard, which replaces earlier versions of IFRS 9 and completes
the IASB’s project to replace IAS 39 Financial Instruments: Recognition and Measurement.
Even though these measurement categories are similar to IAS 39, the criteria for classification into these categories are significantly different.
In addition, the IFRS 9 impairment model has been changed from an “incurred loss” model from IAS 39 to an “expected credit loss” model.
The standard is effective for annual period beginning on or after 1 January 2018 with retrospective application and early adoption
permitted.
The Group early adopted IFRS 9 as issued by the IASB in July 2014 with a date of transition of 1 January 2018, which resulted in changes
in accounting policies and adjustments to the amounts previously recognised in the financial statements. The Group has now updated the
classification based on the full adoption in 2018.
As permitted by the transitional provisions of IFRS 9, the Group elected not to restate comparative figures. Any adjustments to the carrying
amounts of financial assets and financial liabilities at the date of transition were recognised in the opening retained earnings and other
reserves of the current period.

38. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

38.1. BASIS OF PREPARATION (CONTINUED)
statements (continued)
IFRS 9: Financial Instruments (continued)
Consequently, for notes disclosures, the consequential amendments to IFRS 7 disclosures have also only been applied to the current period.
The comparative period notes disclosures repeat those disclosures made in the year.
The adoption of IFRS 9 has resulted in changes in our accounting policies for recognition, classification and measurement of financial
assets and financial liabilities and impairment of financial assets. IFRS 9 also significantly amends other standards dealing with financial
instruments such as IFRS 7 ‘Financial Instruments: Disclosures’.
The Group fully implemented IFRS 9 with effect from 1 January 2018, with the impact of the cumulative adjustment reflected as an adjustment
to opening retained income.
Classification and measurement under IFRS 9
All financial assets under IFRS 9 are to be initially recognised at fair value, including directly attributable transactions costs (for financial
assets not measured at fair value through profit or loss).
Financial assets are to be classified based on:
(i) the business model within which the financial assets are managed and
(ii) the contractual cash flow characteristics of the financial assets (whether the cash flows represent ‘solely payment of principal and
interest’).
Financial assets are measured at amortised cost if they are held within a business model whose objective is to hold those assets for the
purpose of collecting contractual cashflows and those cashflows comprise solely payments of principal and interest (‘hold to collect’).
Financial assets are measured at fair value through other comprehensive income if they are held within a business model whose objective is
achieved by both collecting contractual cashflows and selling financial assets, and those contractual cashflows comprise solely payments of
principal and interest (‘hold to collect and sell’). Movements in the carrying amount of these financial assets should be taken through OCI,
except for impairment gains or losses, interest revenue and foreign exchange gains or losses, which are recognised in profit or loss. Where
the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss.
Other financial assets are measured at FVTPL. All derivative instruments that are either financial assets or financial liabilities will continue to
be classified as held for trading and measured at fair value through profit and loss.
The accounting for financial liabilities is largely unchanged, except for financial liabilities designated at FVTPL. Changes in the fair value
of these financial liabilities that are attributable to the group’s own credit risk are recognised in OCI. Where the financial liability is
derecognised, the cumulative gain or loss previously recognised in OCI is not reclassified from equity to profit or loss. However, it may be
reclassified within equity. The group currently provides note disclosure in respect of the change in fair value due to credit risk of the group’s
financial liabilities designated at FVTPL, in Note 4 b.
For equity investments that are neither held for trading nor contingent consideration, the Group may irrevocably elect to present subsequent
changes in fair value of these equity investments in either (i) profit or loss (FVTPL); or (ii) other comprehensive income (FVOCI). Where the
equity investment is derecognised, the cumulative gain or loss previously recognised in OCI is not reclassified from equity to profit or loss.
However, it may be reclassified within equity.


Classification and measurement under IFRS 9 (continued)
Based on the financial assets at 31 December 2017, the Group and Company assessment is shown as follows
Group Original carrying New carrying

Original classification New classification amount under amount under
under IFRS 9 (2008) under IFRS 9 IFRS (2008) IFRS 9
Financial assets KShs ‘000 KShs ‘000
Equity investments – quoted Fair value through OCI Fair value through OCI 1,276,692 1,276,692
Equity investments – quoted Fair value through P&L Fair value through P&L 6,853,603 6,853,603
Equity investments – quoted Fair value through P&L Fair value through OCI 766,843 766,843
Equity investments – unquoted Fair value through P&L Fair value through P&L 3,157,632 3,157,632
Mortgage loans Amortised cost Amortised cost 109,098 109,098
Receivables arising out of direct insurance Amortised cost Amortised cost 4,204,795 4,156,192
arrangements
Other receivables Amortised cost Amortised cost 1,080,642 1,080,642
Government securities Amortised cost Amortised cost 47,195,222 47,194,184
Corporate bonds and commercial paper Amortised cost Amortised cost 904,007 903,993
Deposits with financial institutions Amortised cost Amortised cost 10,585,597 10,584,530
Cash and bank balances Amortised cost Amortised cost 1,517,872 1,516,953
Total financial assets 77,622,003 77,600,362
Company Original classifica- Original carrying New carrying

tion under IFRS 9 New classification amount under amount under
(2008) under IFRS 9 IFRS 2008 IFRS 9
Financial assets KShs ‘000 KShs ‘000
Equity investments – quoted Fair value through OCI Fair value through OCI 20,270 20,270
Equity investments – unquoted Fair value through OCI Fair value through OCI 65,630 65,630
Other receivables Amortised cost Amortised cost 109,916 109,916
Deposits with financial institutions Amortised cost Amortised cost 250,098 250,098
Cash and bank balances Amortised cost Amortised cost 22,898 22,898
Total financial assets 468,812 468,812
Reconciliation of statement of financial position balances from the IFRS 9 (2008)/IAS 39 to IFRS 9
The Group performed a detailed analysis of its business models for managing financial assets and analysis of their cash flow characteristics.
The following table reconciles the carrying amount of financial assets, from their previous measurement categories in accordance with IFRS
9 (2008) /IAS 39 as at 31 December 2017 to the new measurement categories under IFRS 9 on 1 January 2018:


Reconciliation of statement of financial position balances from the IFRS 9 (2008)/IAS 39 to IFRS 9 (continued)
IFRS 9 (2008)
carrying IFRS 9 carry-
Group amount 31 Reclassifications Remeasurement ing amount 1
December January 2018
2017
Financial assets at amortised cost KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000
Cash and bank balances
Opening balances as per IFRS 9 2008 1,517,872 - - 1,517,872
Reclassification - - - -
Remeasurement: ECL allowance - - (919) (919)
Closing balances as per IFRS 9 1,517,872 - (919) 1,516,953
Remeasurement: ECL allowance - - (1,067) (1,067)
Closing balances as per IFRS 9 10,585,597 - (1,067) 10,584,530
Government securities
Reclassification - 8,879,604 - 8,879,604
Closing balances as per IFRS 9 47,195,222 8,879,604 (1,038) 50,073,788
Receivables arising out of direct insurance
4,204,795 - - 4,204,795
arrangements
Opening balances as per IFRS 9 2008 - - - -
Closing balances as per IFRS 9 4,204,795 - (48,603) 4,156,192
Corporate bonds and commercial papers
Opening balances as per IFRS 9 2008 904,007 - - 904,007
Reclassification - 39,185 - 39,185
Remeasurement: ECL allowance - - (14) (14)
Closing balances as per IFRS 9 904,007 39,185 (14) 943,178
Mortgage loans receivable
Remeasurement: ECL allowance - - - -
Closing balances as per IFRS 9 109,098 - - 109,098
Other receivables
Closing balances as per IFRS 9 1,080,642 - - 1,080,642
Total financial assets measured at amortised cost 65,597,233 8,918,789 (51,641) 74,464,381


Reconciliation of statement of financial position balances from the IFRS 9 (2008)/IAS 39 to IFRS 9 (continued)
IFRS 9 2018 carrying IFRS 9 carrying

Company amount 31 December Reclassifications Remeasurement amount 1 January
2017 2018
Financial assets at amortised cost KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000
Cash and balances
Other receivables
Total financial assets measured at
382,912 - - 382,912
amortised cost
Reconciliation of impairment allowance balance from IFRS 9 (2008) to IFRS 9

The following table reconciles the prior period’s closing impairment allowance measured in accordance with IAS 39 incurred loss model to
the new impairment allowance measured in accordance with the IFRS 9 expected loss model at 1 January 2018:
Group Impairment at Excepted Credit

31 December Reclassifications Remeasurement Loss at 1 January
2017 2018
Financial asset KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000
Cash and bank balances - - 919 919
Deposits with financial institutions - - 1,067 1,067
Receivables arising from direct insurance arrangement 675,813 - 48,603 724,416
Government securities at amortised cost - - 1,038 1,038
Corporate bonds and commercial paper - - 14 14
Total 675,813 - 51,641 727,454


IFRIC Interpretation 22 Foreign Currency Transactions and Advance Consideration
This Interpretation applies to a foreign currency transaction (or part of it) when an entity recognises a non-monetary asset or non-monetary
liability arising from the payment or receipt of advance consideration before the entity recognises the related asset, expense or income (or
part of it).
This Interpretation stipulates that the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of
the related asset, expense or income (or part of it) is the date on which an entity initially recognises the non-monetary asset or non-monetary
liability arising from the payment or receipt of advance consideration.
This Interpretation does not apply to income taxes, insurance contracts and circumstances when an entity measures the related asset, expense
or income on initial recognition:
a) at fair value; or
b) at the fair value of the consideration paid or received at a date other than the date of initial recognition of the non-monetary asset
or non-monetary liability arising from advance consideration (for example, the measurement of goodwill applying IFRS 3 Business
Combinations).
The amendments apply retrospectively for annual periods beginning on or after 1 January 2018, with early application permitted.
The adoption of these changes did not affect the amounts and disclosures of the Group and Company financial statements.
Classification and Measurement of Share-based Payment Transactions (Amendments to IFRS 2)
The following clarifications and amendments are contained in the pronouncement:

Accounting for cash-settled share-based payment transactions that include a performance condition
Up until this point, IFRS 2 contained no guidance on how vesting conditions affect the fair value of liabilities for cash-settled share-based
payments. IASB has now added guidance that introduces accounting requirements for cash-settled share-based payments that follows the
same approach as used for equity-settled share-based payments.
Classification of share-based payment transactions with net settlement features
IASB has introduced an exception into IFRS 2 so that a share-based payment where the entity settles the share-based payment arrangement
net is classified as equity-settled in its entirety provided the share-based payment would have been classified as equity-settled had it not
included the net settlement feature.
Accounting for modifications of share-based payment transactions from cash-settled to equity-settled
Up until this point, IFRS 2 did not specifically address situations where a cash-settled share-based payment changes to an equity-settled
share-based payment because of modifications of the terms and conditions. The IASB has introduced the following clarifications:
IFRIC Interpretation 22 Foreign Currency Transactions and Advance Consideration
— On such modifications, the original liability recognised in respect of the cash-settled share-based payment is derecognised and the
equity-settled share-based payment is recognised at the modification date fair value to the extent services have been rendered up to the
modification date.
— Any difference between the carrying amount of the liability as at the modification date and the amount recognised in equity at the same
date would be recognised in profit and loss immediately.
The amendments are effective for annual periods beginning on or after 1 January 2018. Earlier application is permitted. The amendments
are to be applied prospectively. However, retrospective application is allowed if this is possible without the use of hindsight. If an entity
applies the amendments retrospectively, it must do so for all of the amendments described above.
The Group and the Company do not have share based payments hence there amendment has no impact.
Transfers of Investment property (Amendments to IAS 40)
The IASB has amended the requirements in IAS 40 Investment property on when a company should transfer a property asset to, or from,
investment property. The Group and the Company did not make any transfers and hence there amendment has no impact.


New and amended standards and interpretations in issue but not yet effective for the year ended 31 December 2018
A number of new standards, amendments to standards and interpretations are not yet effective for the year ended 31 December 2018, and
have not been applied in preparing these financial statements.
The Group does not plan to adopt these standards early. These are summarised below;
New standards Effective for annual periods

beginning on or after
IFRS 16 Leases 1 January 2019
IFRIC 23 Classification on accounting for income tax exposures 1 January 2019
IAS 28 Long-term Interests in Associates and Joint Ventures 1 January 2019
IFRS 17 Insurance contracts 1 January 2022
IFRS 9 Prepayment Features with Negative Compensation 1 January 2019
Sale or Contribution of Assets between an Investor and its Associate or Company (Amendments to To be determined
IFRS 10 and IAS 28).
Annual improvements cycle (2015 – 2017) 1 January 2019
IAS 19 Plan Amendment, Curtailment or Settlement (Amendments to IAS 19) 1 January 2019
IFRS 3 Definition of balances 1 January 2020
Amendments to IAS 1& IAS 8 Definition of Material 1 January 2020
Amendments to references to conceptual framework in IFRS standards 1 January 2020
IFRS 16: Leases
IFRS 16 was issued in January 2016 and replaces replaces IAS 17 Leases and its related interpretations for reporting periods beginning on
or after 1 January 2019.
The Group as lessee: IFRS 16 introduces a ‘right of use’ model whereby the lessee recognises a right-of-use asset and an associated financial
obligation to make lease payments for all leases with a term of more than12 months. The asset will be amortised over the lease term and the
financial liability measured at amortised cost with interest recognised in profit and loss using the effective interest rate method.
The Group as lessor: IFRS 16 substantially carries forward the lessor accounting requirements in IAS 17. Accordingly, a lessor continues to
classify and account for its leases as operating leases or finance leases.
The Group is in the process of assessing the impact of IFRS 16 and which transitional approach will be used.
IFRIC 23 Clarification on accounting for Income tax exposures
IFRIC 23 clarifies the accounting for income tax treatments that have yet to be accepted by tax authorities, whilst also aiming to enhance
transparency.
IFRIC 23 explains how to recognise and measure deferred and current income tax assets and liabilities where there is uncertainty over a
tax treatment.
An uncertain tax treatment is any tax treatment applied by an entity where there is uncertainty over whether that treatment will be accepted
by the tax authority.
If an entity concludes that it is probable that the tax authority will accept an uncertain tax treatment that has been taken or is expected to be
taken on a tax return, it should determine its accounting for income taxes consistently with that tax treatment. If an entity concludes that it is
not probable that the treatment will be accepted, it should reflect the effect of the uncertainty in its income tax accounting in the period in
which that determination is made. Uncertainty is reflected in the overall measurement of tax and separate provision is not allowed.


New and amended standards and interpretations in issue but not yet effective for the year ended 31 December 2018 (continued)
IFRIC 23 Clarification on accounting for Income tax exposures (continued)
The entity is required to measure the impact of the uncertainty using the method that best predicts the resolution of the uncertainty (that is,
the entity should use either the most likely amount method or the expected value method when measuring an uncertainty).
The entity will also need to provide disclosures, under existing disclosure requirements, about;
a) judgments made;

b) assumptions and other estimates used; and

c) potential impact of uncertainties not reflected.
Management is currently evaluating the impact of the new standard to the Group’s financial statements.
IFRS 17 Insurance Contracts

IFRS 17 Insurance Contracts sets out the requirements that an entity should apply in reporting information about insurance contracts it issues
and reinsurance contracts it holds. An entity shall apply IFRS 17 Insurance Contracts to:
a) insurance contracts, including reinsurance contracts, it issues;

b) reinsurance contracts it holds; and

c) investment contracts with discretionary participation features it issues, provided the entity also issues insurance contracts.
IFRS 17 requires an entity that issues insurance contracts to report them on the statement of financial position as the total of:
a) the fulfilment cash flows-the current estimates of amounts that the entity expects to collect from premiums and pay out for claims, benefits
and expenses, including an adjustment for the timing and risk of those amounts; and

b) the contractual service margin-the expected profit for providing insurance coverage. The expected profit for providing insurance
coverage is recognised in profit or loss over time as the insurance coverage is provided.

IFRS 17 requires an entity to recognise profits as it delivers insurance services, rather than when it receives premiums, as well as to provide
information about insurance contract profits that the Company expects to recognise in the future. IFRS 17 requires an entity to distinguish
between groups of contracts expected to be profit making and groups of contracts expected to be loss making. Any expected losses arising
from loss-making, or onerous, contracts are accounted for in profit or loss as soon as the Company determines that losses are expected. IFRS
17 requires the entity to update the fulfilment cash flows at each reporting date, using current estimates of the amount, timing and uncertainty
of cash flows and of discount rates. The entity:
a) accounts for changes to estimates of future cash flows from one reporting date to another either as an amount in profit or loss or as an
adjustment to the expected profit for providing insurance coverage, depending on the type of change and the reason for it; and

b) chooses where to present the effects of some changes in discount rates-either in profit or loss or in other comprehensive income.
IFRS 17 also requires disclosures to enable users of financial statements to understand the amounts recognised in the entity’s statement of
financial position and statement of profit or loss and other comprehensive income, and to assess the risks the Company faces from issuing
insurance contracts.
IFRS 17 replaces IFRS 4 Insurance Contracts. IFRS 17 is effective for financial periods commencing on or after 1 January 2022. An entity
shall apply the standard retrospectively unless impracticable. A Company can choose to apply IFRS 17 before that date, but only if it also
applies IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers.
The adoption of these changes are expected to have a significant impact on the amounts and disclosures of the Group’s financial statements.
Management is currently evaluating the impact upon adoption of the standard.


New and amended standards and interpretations in issue but not yet effective for the year ended 31 December 2018 (continued)
Prepayment Features with Negative Compensation (Amendments to IFRS 9)
The amendments clarify that financial assets containing prepayment features with negative compensation can now be measured at amortised
cost or at fair value through other comprehensive income (FVOCI) if they meet the other relevant requirements of IFRS 9. Management is
currently evaluating the impact of the new standard to the Group’s financial statements.
The amendments apply for annual periods beginning on or after 1 January 2019 with retrospective application, early adoption is permitted.
Long-term Interests in Associates and Joint Ventures (Amendment to IAS 28)

The amendments clarify that an entity applies IFRS 9 to long-term interests in an associate and joint venture that form part of the net
investment in the associate or joint venture but to which the equity method is not applied.
Management is currently evaluating the impact of the new standard to the Group’s financial statements.
The amendments apply for annual periods beginning on or after 1 January 2019. Early adoption is permitted.
Sale or Contribution of Assets between an Investor and its Associate or Company (Amendments to IFRS 10 and IAS 28)
The amendments require the full gain to be recognised when assets transferred between an investor and its associate or Company meet the
definition of a ‘business’ under IFRS 3 Business Combinations. Where the assets transferred do not meet the definition of a business, a partial
gain to the extent of unrelated investors’ interests in the associate or Company is recognised. The definition of a business is key to determining
the extent of the gain to be recognised.
The effective date for these changes has now been postponed until the completion of a broader review.
The adoption of these changes will not affect the amounts and disclosures of the Group and Company financial statements.
Annual improvement cycle (2015 – 2017) – various standards
Standards Amendments
Clarifies how a Company accounts for increasing its interest in a joint operation that meets the definition of
a business:
IFRS 3 Business
Combinations and IFRS – If a party maintains (or obtains) joint control, then the previously held interest is not remeasured.
11 Joint Arrangements
– If a party obtains control, then the transaction is a business combination achieved in stages and the
acquiring party remeasures the previously held interest at fair value.
Clarifies that all income tax consequences of dividends (including payments on financial instruments classified
IAS 12 Income taxes as equity) are recognised consistently with the transactions that generated the distributable profits – i.e. in
profit or loss, OCI or equity.
Clarifies that the general borrowings pool used to calculate eligible borrowing costs excludes only borrowings
that specifically finance qualifying assets that are still under development or construction. Borrowings that
were intended to specifically finance qualifying assets that are now ready for their intended use or sale – or
IAS 23 Borrowing costs any non-qualifying assets – are included in that general pool.
As the costs of retrospective application might outweigh the benefits, the changes are applied prospectively
to borrowing costs incurred on or after the date an entity adopts the amendments.
The amendments are effective for annual reporting periods beginning on or after 1 January 2019 with earlier application permitted. The
adoption of these amendments is not expected to affect the amounts and disclosures of the Company’s financial statements.


New and amended standards and interpretations in issue but not yet effective for the year ended 31 December 2018 (Continued)
IAS 19 Plan Amendment, Curtailment or Settlement (Amendments to IAS 19)
The amendments clarify that:
– on amendment, curtailment or settlement of a defined benefit plan, a Company now uses updated actuarial assumptions to determine
its current service cost and net interest for the period; and
– the effect of the asset ceiling is disregarded when calculating the gain or loss on any settlement of the plan and is dealt with separately
in other comprehensive income (OCI).
Consistent with the calculation of a gain or loss on a plan amendment, entities will now use updated actuarial assumptions to determine the
current service cost and net interest for the period. Previously, entities would not have updated the calculation of these costs until the year-end.
Further, if a defined benefit plan is settled, any asset ceiling would be disregarded when determining the plan assets as part of the calculation
of gain or loss on settlement.
The amendments apply for plan amendments, curtailments or settlements that occur on or after 1 January 2019, or the date on which the
amendments are first applied. Earlier application is permitted.
The adoption of this standard will not have an impact on the financial statements of the Group.
IFRS 3 Definition of a Business
With a broad business definition, determining whether a transaction results in an asset or a business acquisition has long been a challenging
but important area of judgement. These amendments to IFRS 3 Business Combinations seek to clarify this matter as below however complexities
still remain.
– Optional concentration test

The amendments include an election to use a concentration test. This is a simplified assessment that results in an asset acquisition if
substantially all of the fair value of the gross assets is concentrated in a single identifiable asset or a group of similar identifiable assets.
– Substantive process
If an entity chooses not to apply the concentration test, or the test is failed, then the assessment focuses on the existence of a substantive
process.
The definition of a business is now narrower and could result in fewer business combinations being recognised.
The amendment applies to businesses acquired in annual reporting periods beginning on or after 1 January 2020. Earlier application is
permitted. The adoption of this standard will not have an impact on the financial statements of the Group.


New and amended standards and interpretations in issue but not yet effective for the year ended 31 December 2018 (Continued)
Amendments to References to the Conceptual Framework in IFRS Standards
This amendment sets out amendments to IFRS Standards (Standards), their accompanying documents and IFRS practice statements to reflect
the issue of the International Accounting Standards Board (IASB) revised Conceptual Framework for Financial Reporting in 2018 (2018
Conceptual Framework).
Some Standards, their accompanying documents and IFRS practice statements contain references to, or quotations from, the IASC’s
Framework for the Preparation and Presentation of Financial Statements adopted by the IASB in 2001 (Framework) or the Conceptual
Framework for Financial Reporting issued in 2010. Amendments to References to the Conceptual Framework in IFRS Standards updates
some of those references and quotations so that they refer to the 2018 Conceptual Framework, and makes other amendments to clarify which
version of the Conceptual Framework is referred to in particular documents.
These amendments are based on proposals in the Exposure Draft Updating References to the Conceptual Framework, published in 2015,
and amend Standards, their accompanying documents and IFRS practice statements that will be effective for annual reporting periods
beginning on or after 1 January 2020.
TThe adoption of these changes will not affect the amounts and disclosures of the Group’s financial statements.
IAS 1 and IAS 8 Definition of Material
The amendment refines the definition of Material to make it easier to understand and aligning the definition across IFRS Standards and the
Conceptual Framework.
The amendment includes the concept of ‘obscuring’ to the definition, alongside the existing references to ‘omitting’ and ‘misstating’.
Additionally, the amendments also adds the increased threshold of ‘could influence’ to ‘could reasonably be expected to influence’ as below.
“Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of
general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific
reporting entity.”
However, the amendment has also removed the definition of material omissions or misstatements from IAS 8 Accounting Policies, Changes
in Accounting Estimates and Errors.
The amendments are effective from 1 January 2020 but may be applied earlier. The Group is assessing the potential impact on its financial
statements resulting from the application of the refined definition of materiality.


38.2. CONSOLIDATION
a) Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries
are included in the consolidated financial statements from the date on which control commences until the date on which control ceases.
The Group uses the acquisition method of accounting to account for business combinations. The consideration transferred for the acquisition
of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration
transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs are
expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured
initially at their fair values at the acquisition date. On an acquisition-by-acquisition basis, the Group recognizes any non-controlling interest
in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net assets.
The excess of the consideration transferred the amount of any non-controlling interest in the acquiree and the acquisition-date fair value
over any previous equity interest in the acquiree over the fair value of the Group’s share of the identifiable net assets acquired is recorded
as goodwill.
If this is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognized
directly in profit or loss.
Inter-company transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are
also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of subsidiaries have
been changed where necessary to ensure consistency with the policies adopted by the Group.
Investments in subsidiaries are accounted for at cost less impairment. Cost is adjusted to reflect changes in consideration arising from
contingent consideration amendments. Cost also includes direct attributable costs of investment.
b) Investment in Associates
Associates are all entities over which the Group has significant influence, but not control, or joint control over the financial and operating
policies, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for
by the equity method of accounting and are initially recognised at cost. The Group’s investments in associates include goodwill identified on
acquisition net of all accumulated impaired losses.
The Group’s share of its associates’ post-acquisition profits or losses is recognised in the profit or loss, and its share of post-acquisition
movements in reserves is recognised in other comprehensive income. The cumulative post-acquisition movements are adjusted against the
carrying amount of the investment. When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including
any other unsecured receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf
of the associate.
Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates.
Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies
of associates have been changed where necessary to ensure consistency with the policies adopted by the Group.
Dilution of gains and losses arising from investment in associates are recognised in the profit or loss.
c) Foreign currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment
in which the entity operates (‘the functional currency’). The consolidated financial statements are presented in Kenya Shillings, which is the
Company’s functional and presentation currency.
(i) Foreign currency transactions
Foreign currency transactions are translated into the functional currency of the respective entity using the exchange rates prevailing at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at
year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in profit or loss.
Non-monetary assets and liabilities denominated in foreign currencies are translated to the functional currency at the exchange rate when
the fair value was determined.
(ii) Consolidation of group entities
The results and financial position of all the group entities (none of which has the currency of a hyperinflationary economy) that have a
functional currency different from the presentation currency are translated into the presentation currency as follows:
• Assets and liabilities for each statement of financial position presented are translated at the closing rate at the reporting date
• Income and expenses for each profit or loss are translated at average exchange rates (unless this average is not a reasonable
approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income expenses are translated
at the dates of the transactions); and
• All resulting exchange differences are recognised as a separate component in other comprehensive income.


38.2. CONSOLIDATION (CONTINUED)
c) Foreign currency (Continued)
On consolidation, exchange differences arising from the translation of the net investment in foreign entities are recognized in the statement
of other comprehensive income and accumulated in shareholders’ equity (translation reserve). When a foreign operation is disposed of in
its entirety or partially such that control or significant influence is lost, the cumulative amount in the translation reserve related to that foreign
operation is reclassified to profit or loss as part of the gain or loss on disposal. If the Group disposes of part of its investment in a subsidiary
but retains control, then the relative proportion of the cumulative reserve is re attributed to NCI. When the Group disposes of only part of an
associate while retaining significant influence, the relative proportion of the cumulative amount is reclassified to profit or loss.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and
translated at the closing rate.
38.3. SEGMENT INFORMATION
An operating segment is a component of the Group that engages in business activities from which it may earn revenue and incur expenses
including revenues and expenses that relate to transactions with any of the Group’s other components, whose operating results are reviewed
regularly by the Group chief strategy & administration officer, to make decisions about resources allocated to each segment and assess its
performance, and for which discrete information is available.
Group costs are allocated to segments on a reasonable and consistent basis. Transactions between segments are generally accounted for
in accordance with Group policies as if the segment were a stand-alone business with intra segment revenue and cost being eliminated in
head office.
The Chief Operating Decision Maker within the Group is the Jubilee Holdings Limited Board of Directors. The group results are analyzed
across 9 operating segments based on a combination of geographical areas and products and services. There are five geographical
segments: Kenya, Uganda, Tanzania, Burundi and Mauritius within which there are three segments classified according to products and
services: Short-term business, which includes General and Medical, Long-term business, which includes Individual Life, Group Life and
Pension, and Investments. This is consistent with the way the Group manages the business.
General insurance business of any class or classes not being long-term insurance business. Classes of short-term insurance include, Engineering
insurance, Fire insurance - domestic risks, Fire insurance - industrial and commercial risks, Liability insurance, Marine insurance, Motor
insurance - private vehicles , Motor insurance - commercial vehicles, Personal accident insurance, Theft insurance ,Workmen’s Compensation
and Employer’s Liability insurance and Miscellaneous insurance (i.e. class of business not included under those listed above).
Medical insurance means the business of affecting and carrying out contracts of insurance against costs of otherwise non-recoverable
medical and surgical expenses necessarily and reasonably incurred by a member as a direct result of sustaining accidental bodily injury
and/or illness and/or disease within the period of insurance subject to the policy provisions/ terms, exclusions and conditions.
Medical and general have been aggregated as the Group does not hold the assets and liabilities separately.
Ordinary & Group Life: Includes insurance business of all or any of the following classes, namely, life assurance business, superannuation
business and business incidental to any such class of business; Life assurance business means the business of, or in relation to, the issuing of,
or the undertaking of liability to pay money on death (not being death by accident or in specified sickness only) or on the happening of any
contingency dependent on the termination or continuance of human life (either with or without provision for a benefit under a continuous
disability insurance contract), and include a contract which is subject to the payment of premiums for term dependent on the termination or
continuance of human life and any contract securing the grant of an annuity for a term dependent upon human life; Superannuation business
means life assurance business, being business of, or in relation to, the issuing of or the undertaking of liability under superannuation, group
life and permanent health insurance policy.
The segments are individually considered by management when making decisions and they are the basis for resource allocation and
performance measurement by the Board of Directors. There are no reconciling differences between the primary financial statements of the
Group and the reported segmental information.
The Group accounts for inter-segmental transactions as if the transactions were to third parties. Any outstanding amounts owing within the
Group companies most of which constitutes dividends payable are included under group eliminations.
Results of activities considered incidental to Jubilee Holdings main operations as well as unallocated revenues and expenses, liabilities and
assets have been categorized under investments segment. There are no reconciling differences between the primary financial statements of
the Group and the reported segmental information.
The Group has a widely diversified policy holder base and is therefore not reliant on any individual major customers.
38.4. INSURANCE CONTRACTS
a) Classification
The Group issues contracts that transfer insurance risk or financial risk or both. Insurance contracts are those contracts that transfer significant
insurance risk. Such contracts may also transfer financial risk. As a general guideline, the Group defines as significant insurance risk, the
possibility of having to pay benefits on the occurrence of an insured event that are at least 10% more than the benefits payable if the insured
event did not occur.
Investment contracts are those contracts that transfer financial risk with no significant insurance risk. See accounting policy for these contracts
under 38.6. Insurance contracts and investment contracts are classified into two main categories, depending on the duration of risk and as
per the provisions of the Insurance Act.


38.4. INSURANCE CONTRACTS (CONTINUED)
a) Classification (continued)
(i) Long-term insurance business
Includes insurance business of all or any of the following classes, namely, life assurance business, superannuation business and business
incidental to any such class of business;
Life assurance business means the business of, or in relation to, the issuing of, or the undertaking of liability to pay money on death (not
being death by accident or in specified sickness only) or on the happening of any contingency dependent on the termination or continuance
of human life (either with or without provision for a benefit under a continuous disability insurance contract), and include a contract which is
subject to the payment of premiums for term dependent on the termination or continuance of human life and any contract securing the grant
of an annuity for a term dependent upon human life;
Superannuation business means life assurance business, being business of, or in relation to, the issuing of or the undertaking of liability
under superannuation, group life and permanent health insurance policy.
(ii) Short-term insurance business
Short-term insurance business means insurance business of any class or classes not being long term insurance business.
Classes of General Insurance Include, Engineering insurance, Fire insurance - domestic risks, Fire insurance - industrial and commercial
risks, Liability insurance, Marine insurance, Motor insurance - private vehicles , Motor insurance - commercial vehicles, Personal accident
insurance, Theft insurance ,Workmen’s Compensation and Employer’s Liability insurance and Miscellaneous insurance (i.e. class of business
not included under those listed above).
Motor insurance business means the business of affecting and carrying out contracts of insurance against loss of, or damage to, or arising
out of or in connection with the use of, motor vehicles, inclusive of third party risks but exclusive of transit risks.
Personal Accident insurance business means the business of affecting and carrying out contracts of insurance against risks of the persons
insured sustaining injury as the result of an accident or of an accident of a specified class or dying as the result of an accident or of an
accident of a specified class or becoming incapacitated in consequence of disease or of disease of a specified class.
Fire insurance business means the business of affecting and carrying out contracts of insurance, otherwise than incidental to some other class
of insurance business against loss or damage to property due to fire, explosion, storm and other occurrences customarily included among
the risks insured against in the fire insurance business.
Medical insurance means the business of affecting and carrying out contracts of insurance against costs of otherwise non-recoverable
medical and surgical expenses necessarily and reasonably incurred by a member as a direct result of sustaining accidental bodily injury
and/or illness and/or disease within the period of insurance subject to the policy provisions/ terms, exclusions and conditions.
Marine insurance business means the business of affecting and carrying out contracts of insurance against loss of consignment of goods
during transit.
Burglary insurance business relates to contracts of insurance against loss due to theft involving actual break in or break out.
b) Recognition and measurement
(i) Premium income
For long term insurance business, premiums are recognized as revenue when they become payable by the contract holder. Premiums are
shown before deduction of commission.
For short-term insurance business, Premium income is recognized on assumption of risks, and includes estimates of premiums due but not yet
received, less an allowance for cancellations, and less unearned premium. Unearned premiums represent the proportion of the premiums
written in periods up to the accounting date that relates to the unexpired terms of policies in force at the reporting date. Whilst all other
subsidiaries computed the reserve based on the 24ths method, The Jubilee Insurance Company of Kenya Limited revised the method of
computing the unearned premiums to the 1/365th method with effect from 1 January 2014.
Premiums are shown before deduction of commission and are gross of any taxes or duties levied on premiums.
(ii) Claims and policy holders benefits payable
For long term insurance business, benefits are recorded as an expense when they are incurred. Claims arising on maturing policies are
recognized when the claim becomes due for payment. Death claims are accounted for on notification. Surrenders are accounted for on
payment.
A liability for contractual benefits that are expected to be incurred in the future is recorded when the premiums are recognized. The liability
is determined as the sum of the expected discounted value of the benefit payments and the future administration expenses that are directly
related to the contract, less the expected discounted value of the theoretical premiums that would be required to meet the benefits and
administration expenses based on the valuation assumptions used (the valuation premiums). The liability is based on assumptions as to
mortality, persistency, maintenance expenses and investment income that are established at the time the contract is issued. A margin for
adverse deviations is included in the assumptions.


38.5. INSURANCE CONTRACTS (CONTINUED)
b) Recognition and measurement (continued)
(ii) Claims and policy holders benefits payable (continued)

Where insurance contracts have a single premium or a limited number of premium payments due over a significantly shorter period than
the period during which benefits are provided, the excess of the premiums payable over the valuation premiums is deferred and recognized
as income in line with the decrease of unexpired insurance risk of the contracts in-force or, for annuities in force, in line with the decrease of
the amount of future benefits expected to be paid. The liabilities are recalculated at each reporting date using the assumptions established
at inception of the contracts.
For short-term insurance business, claims incurred comprise claims paid in the year and changes in the provision for outstanding claims.
Claims paid represent all payments made during the year, whether arising from events during that or earlier years. Outstanding claims
represent the estimated ultimate cost of settling all claims arising from incidents occurring prior to the reporting date, but not settled at that
date. Outstanding claims are computed on the basis of the best information available at the time the records for the year are closed, and
include provisions for claims incurred but not reported (“IBNR”). Outstanding claims are not discounted.
(iii) Commissions and deferred acquisition costs (“DAC”)

Commissions earned and payable are recognized in the period in which relevant premiums are written. A proportion of commission payable
is deferred and amortized over the period in which the related premium is earned. Deferred acquisition costs represent a proportion of
acquisition costs that relate to policies that are in force at the year end.
(iv) Liability adequacy test
At each reporting date, liability adequacy tests are performed to ensure the adequacy of the contract liabilities net of related DAC. In
performing these tests, current best estimates of future contractual cash flows and claims handling and administration expenses, as well
as investment income from the assets backing such liabilities, are used. Any deficiency is immediately charged to profit or loss initially by
writing off DAC and by subsequently establishing a provision for losses arising from liability adequacy tests (the unexpired risk provision).
As set out in Note 38.4(a) above, long-term insurance contracts are measured based on assumptions set out at the inception of the contract.
When the liability adequacy test requires the adoption of new best estimate assumptions, such assumptions (without margins for adverse
deviation) are used for the subsequent measurement of these liabilities.
(v) Reinsurance contracts held
Contracts entered into by the Group with reinsurers under which the Group is compensated for losses on one or more contracts issued by the
Company and that meet the classification requirements for insurance contracts are classified as reinsurance contracts held. Contracts that do
not meet these classification requirements are classified as financial assets. Insurance contracts entered into by the Group under which the
contract holder is another insurer (inwards reinsurance) are included with insurance contracts.
The benefits to which the Group is entitled under its reinsurance contracts held are recognized as reinsurance assets. These assets consist of
short-term balances due from reinsurers, as well as longer term receivables that are dependent on the expected claims and benefits arising
under the related reinsured insurance contracts. Amounts recoverable from or due to reinsurers are measured consistently with the amounts
associated with the reinsured insurance contracts and in accordance with the terms of each reinsurance contract. Reinsurance liabilities are
primarily premiums payable for reinsurance contracts and are recognized as an expense when due.
The Group assesses its reinsurance assets for impairment on a quarterly basis. If there is objective evidence that the reinsurance asset is
impaired, the Group reduces the carrying amount of the reinsurance asset to its recoverable amount and recognizes that impairment loss in
the profit or loss. The Group gathers the objective evidence that a reinsurance asset is impaired using the same process adopted for financial
assets held at amortized cost. The impairment loss is also calculated following the same method used for these financial assets.
(vi) Receivables and payables related to insurance contracts and investment contracts
Receivables and payables are recognized when due. These include amounts due to and from agents, brokers and insurance contract holders.
If there is objective evidence that the insurance receivable is impaired, the Group reduces the carrying amount of the insurance receivable
accordingly and recognizes that impairment loss in profit or loss. The Group gathers the objective evidence that an insurance receivable is
impaired using the same process adopted for loans and receivables. The impairment loss is also calculated under the same method used for
these financial assets.
(vii) Salvage and subrogation reimbursements

Some insurance contracts permit the Group to sell (usually damaged) property acquired in settling a claim (for example, salvage). The Group
may also have the right to pursue third parties for payment of some or all costs (for example, subrogation).
Estimates of salvage recoveries are included as an allowance in the measurement of the insurance liability for claims, and salvage property
is recognized in other assets when the liability is settled. The allowance is the amount that can reasonably be recovered from the disposal
of the property.
Subrogation reimbursements are also considered as an allowance in the measurement of the insurance liability for claims and are recognized
in other assets when the liability is settled. The allowance is the assessment of the amount that can be recovered from the action against the
liable third party.


38.6. INVESTMENT CONTRACTS
The Group issues investment contracts with fixed and guaranteed terms (fixed interest rate). The investment contracts include funds
administered for a number of retirement benefit schemes.
For investment contracts with fixed and guaranteed terms, the amortized cost basis is used. In this case, the liability is initially measured at
its fair value less transaction costs that are incremental and directly attributable to the acquisition or issue of the contract.
Subsequent measurement of investment contracts at amortized cost uses the effective interest method. This method requires the determination
of an interest rate (the effective interest rate) that exactly discounts to the net carrying amount of the financial liability, the estimated future
cash payments or receipts through the expected life of the financial instrument or, when appropriate, a shorter period if the holder has the
option to redeem the instrument earlier than maturity.
The Group re-estimates at each reporting date the expected future cash flows and recalculates the carrying amount of the financial liability
by computing the present value of estimated future cash flows using the financial liability’s original effective interest rate. Any adjustment is
immediately recognized as income or expense in profit or loss.
For investment contracts with discretionary participation in profits, the liability is set approximately equal to the value of the underlying asset
of the contract.
38.7. REVENUE RECOGNITION

(i) Insurance premium revenue
- The revenue recognition policy relating to insurance contracts is set out under note 38.4 (b) (i).
(ii) Non interest income from financial investments
- The revenue recognition policy for non-interest income from financial investments is disclosed in note 38.11.
(iii) Interest income and expenses
- Interest income and expense for all interest-bearing financial instruments, including financial instruments measured at fair value
through profit or loss, are recognized within ‘investment income’ and ‘finance costs’ in the profit or loss using the effective interest rate
method.
(iv) Dividend income
- Dividend income for available-for-sale equities is recognized when the right to receive payment is established – this is the ex-dividend
date for equity securities.
(v) Rental income from investment properties
- Rental income is recognised in the period it is earned.
(vi) Commission earned
The revenue recognition policy on commission is disclosed in note 38.4 (b) (iii).
38.8. PROPERTY AND EQUIPMENT

All categories of property and equipment are initially recorded at cost. Property and equipment are subsequently measured at historical
cost less depreciation and impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs
and maintenance are charged to profit or loss during the financial period in which they are incurred.
Depreciation on assets is calculated using the straight line method to write down their cost to their residual values over their estimated useful
lives, as follows:
Computers 3 years
Office equipment 4 years
Motor vehicles 5 years
Furniture, fixtures and fittings 10 years
These rates have been applied consistently over the years.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.
An asset’s carrying amount is written down immediately to its estimated recoverable amount if the asset’s carrying amount is greater than
its estimated recoverable amount.


38.8. PROPERTY AND EQUIPMENT (CONTINUED)
Gains and losses on disposal of property and equipment are determined by reference to their carrying amount and are included in profit
or loss.
38.9. INVESTMENT PROPERTY

Buildings, or part of a building, (freehold or held under a finance lease) and land (freehold or held under an operating lease) held for long
term rental yields and/or capital appreciation are classified as investment property.
Investment property is measured at cost on initial recognition and subsequently measured at fair value. Directors monitor the investment
property market and economic conditions, including general and property inflation, on a regular basis to identify changes in market
conditions that may lead to significant change in fair value. Changes in fair values are included in investment income in the profit or loss.
On disposal of the investment property, the difference between the net disposal proceeds and the carrying amount is charged or credited to
the statement of profit or loss.
38.10. INTANGIBLE ASSETS

(i) Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the net identifiable assets of the
acquired subsidiary/associate at the date of acquisition. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill
on acquisitions of associates is included in investments in associates. Goodwill is tested annually for impairment and carried at cost less
accumulated impairment losses. Gains and losses on disposal of an entity include the carrying amount of goodwill relating to the entity
sold. Goodwill is allocated to cash-generating units for the purpose of impairment testing. Each of those cash-generating units represents
the Group’s investment in each country of operation by each reporting segment.
(ii) Computer software

Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and bring to use the specific software.
These costs are amortized over their estimated useful lives (three to five years). Costs associated with developing or maintaining computer
software programs are recognized as an expense as incurred. Costs that are directly associated with the production of identifiable and
unique software products controlled by the Group, and that will probably generate economic benefits exceeding costs beyond one year,
are recognized as intangible assets. Direct costs include the software development, employee costs and an appropriate portion of relevant
overheads. Computer software development costs recognized as assets are amortized over their estimated useful lives (not exceeding three
years).
38.11. FINANCIAL ASSETS AND LIABILITIES

The Group initially classified financial instruments in accordance with IFRS 9 (2008) which was early adopted in the year 2009. The
classifications have been updated based on full adoption in 2018.
All financial assets are recognized and derecognized on trade date when the purchase or sale of a financial asset is under a contract whose
terms require delivery of the financial asset within the timeframe established by the market concerned. Financial assets are initially measured
at fair value, plus transaction costs, except for those financial assets classified as at fair value through profit or loss (FVTPL), which are initially
measured at fair value.
All recognized financial assets are subsequently measured in their entirety at either amortized cost or fair value.
Fair values of quoted investments in active markets are based on quoted bid prices. Fair values for unquoted investments are estimated using
valuation techniques. These include the use of recent arm’s length transactions, discounted cash flow analysis and other valuation techniques
commonly used by market participants.
Classification of financial assets

From 1 January 2018, the Group has applied IFRS 9 and classifies its financial assets in the following measurement categories:
• those to be measured subsequently at fair value (either through OCI or through profit or loss), and
• those to be measured at amortised cost.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For investments in equity instruments that
are not held for trading, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to account
for the equity investment at fair value through other comprehensive income (FVOCI).
Recognition and derecognition

Regular purchases and sales of financial assets are recognised on the trade-date, the date on which the Group commits to purchase or sell
the asset. Financial assets are derecognised when the rights to receive cash flows from the investments have expired or have been transferred
and the Group has transferred substantially all risks and rewards of ownership.


38.11. FINANCIAL ASSETS AND LIABILITIES (CONTINUED)
Measurement
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit
or loss (FVTPL), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets
carried at fair value through profit or loss are expensed in profit or loss.
Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment
of principal and interest.
Debt instruments at amortised cost and the effective interest method
Debt instruments are those instruments that meet the definition of a financial liability from the issuer’s perspective, such as loans, government
and corporate bonds.
Classification and subsequent measurement of debt instruments depends on:
(i) the Group’s business model for managing the financial assets; and
(ii) the cash flow characteristics of the asset.
Based on these factors, the Group classifies its debt instruments into one of the following three measurement categories:
• Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of
principal and interest are measured at amortised cost.
Interest income from these financial assets is included in investment income using the effective interest rate method. Any gain or loss
arising on derecognition is recognised directly in profit or loss and presented in other gains/ (losses). Impairment losses are presented
as separate line item in the statement of profit or loss.
• FVOCI: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows
represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through
OCI, except for the recognition of impairment gains or losses, interest income. Interest income from these financial assets is included
in investment income using the effective interest rate method. Foreign exchange gains and losses are presented in other gains/ (losses)
and impairment expenses are presented as separate line item in the statement of profit or loss.
• FVPL: Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVPL. A gain or loss on a debt investment that
is subsequently measured at FVPL is recognised in profit or loss and presented net within other gains/ (losses) in the period in which it
arises.
Business model: the business model reflected how the Group manages the assets in order to generate cash flows i.e. whether the Group’s
objective is solely to collect the contractual cash flows from the assets or is to collect both the contractual cash flows and cash flows arising
from the sale of assets. If neither of these is applicable (e.g. financial assets held for trading purposes), then the financial assets are classified
as part of ‘other’ business model and measured at FVTPL. Factors considered by the Group in determining the business model for a group of
assets include past experience on how the cash flows for these assets were collected, how the asset’s performance is evaluated and reported
to key management personnel and how risks are assessed and managed.
SPPI: Where the business model is to hold assets to collect contractual cash flows or to collect contractual cash flows and sell, the Group
assesses whether the financial instruments’ cash flows represent solely payments of principal and interest (‘SPPI test’). In making this
assessment, the Group considers whether the contractual cash flows are consistent with a basic lending arrangement i.e. includes only
consideration for the time value of money, credit risk, other basic lending risks and a profit margin that is consistent with a basic lending
arrangement. Where the contractual terms introduce exposure to risk or volatility that are inconsistent with a basic lending arrangement, the
related financial asset is classified and measured at fair value through profit or loss.
The Group reclassifies debt investments when and only when its business model for managing those assets changes.
Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short term highly liquid investments with original
maturities of three months or less, and bank overdrafts. Bank overdrafts are shown as part of current liabilities on the statement of financial
position. The reported cash and cash equivalents are amounts cash in hand, deposits held at call with banks, other short term highly liquid
investments with original maturities of three months or less. Foreign denominated balances are measured using the foreign exchange rates
prevailing at the reporting date.


Equity instruments
The Group subsequently measures all equity investments at fair value. Where the Group’s management has elected to present fair value
gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to profit or loss following
the derecognition of the investment. Dividends from such investments continue to be recognised in profit or loss as other income when the
Group’s right to receive payments is established.
Changes in the fair value of financial assets at FVPL are recognised in other gains/ (losses) in the statement of profit or loss as applicable.
Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other
changes in fair value.
• Equity instruments at fair value through other comprehensive income (FVTOCI);
At initial recognition, the Group can make an irrevocable election (on an instrument-by-instrument basis) to designate investments in equity
instruments as at FVTOCI. Designation at FVTOCI is not permitted if the equity investment is held for trading. A financial asset is held for
trading if:
• it has been acquired principally for the purpose of selling it in the near term; or

• on initial recognition it is part of a portfolio of identified financial instruments that the Group manages together and has evidence of a
recent actual pattern of short-term profit-taking; or
Investments in equity instruments at FVTOCI are initially measured at fair value plus transaction costs.
Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive
income and accumulated in the fair value reserve. Where the asset is disposed of, the cumulative gain or loss previously accumulated in the
fair value reserve is not reclassified to the statement of profit or loss, but is reclassified to retained earnings.
Determination of fair value
For financial instruments traded in active markets, the determination of fair values of financial assets and financial liabilities is based on
the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. This includes listed equity securities and quoted debt instruments at the Nairobi Securities Exchange. The quoted market
price used for financial assets held by the Group is the current bid price.
A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange,
dealer, broker, industry, pricing service or regulatory agency, and those prices represent actual and regularly occurring market transactions
on an arm’s length basis. If the above criteria are not met, the market is regarded as being inactive.
For example a market is inactive when there is a wide bid-offer spread or significant increase in the bid-offer spread or there are few recent
transactions.
For all other financial instruments, fair value is determined using valuation techniques. In these techniques, fair values are estimated from
observable data in respect of similar financial instruments, using models to estimate the present value of expected future cash flows or other
valuation techniques, using inputs existing at the dates of the statement of financial position.
Fair values are categorised into three levels in a fair value hierarchy based on the degree to which the inputs to the measurement are
observable and the significance of the inputs to the fair value measurement in its entirety:
• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for
the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not
based on observable market data (unobservable inputs).
Transfers between levels of the fair value hierarchy are recognised by the Group at the end of the reporting period during which the change
occurred.


Impairment
From 1 January 2018, the Group assesses on a forward looking basis the expected credit losses associated with its debt instruments
carried at amortised cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase
in credit risk.
Prior to 1 January 2018, the Group would assess at each reporting date whether there is objective evidence that a financial asset or group
of financial assets is impaired. A financial asset or group of financial assets is impaired and impairment losses are incurred only if there is
objective evidence of impairment as a result of one or more events that have occurred after the initial recognition of the asset (a ‘loss event’)
and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can
be reliably estimated. Objective evidence that a financial asset or group of assets is impaired includes observable data that comes to the
attention of the Group about the following events:
Objective evidence that a financial asset or group of assets is impaired includes observable data that comes to the attention of the Group
about the following events:
• significant financial difficulty of the issuer or debtor;

• a breach of contract, such as a default or delinquency in payments;
• it becoming probable that the issuer or debtor will enter bankruptcy or other financial reorganisation;
• the disappearance of an active market for that financial asset because of financial difficulties; or
• observable data indicating that there is a measurable decrease in the estimated future cash flow from a group of financial assets since
the initial recognition of those assets, although the decrease cannot yet be identified with the individual financial assets in the Group,
including:
- An adverse changes in the payment status of issuers or debtors in the Group; or

- National or local economic conditions that correlate with defaults on the assets in the Group.
IFRS 9 replaced the previous ‘incurred loss’ model in IAS 39 with a forward-looking ‘expected credit loss’ (“ECL”) model. The new impairment
model applies to the following financial instruments that are not measured at FVTPL or FVTOCI:
• Government securities measured at amortised cost

• Receivables arising from direct insurance arrangements
• Rent and other receivables;
• Loan receivable
• Corporate bonds and commercial paper;
• Deposits with financial institutions; and
• Cash and bank balances.
No impairment loss is recognised on equity investments and financial assets measured at FVPL.
The Group recognises loss allowance at an amount equal to either 12-month ECLs or lifetime ECLs. Lifetime ECLs are the ECLs that result from
all possible default events over the expected life of a financial instrument, whereas 12-month ECLs are the portion of ECLs that result from
default events that are possible within the 12 months after the reporting date.
The Group will recognise loss allowances at an amount equal to lifetime ECLs, except in the following cases, for which the amount recognised
will be 12-month ECLs:
• Debt instruments that are determined to have low credit risk at the reporting date. The Group will consider a debt instrument to have
low credit risk when its credit risk rating is equivalent to the globally understood definition of ‘investment-grade’ and investments in
Government securities; and
• Other financial instruments (other than trade and lease receivables) for which credit risk has not increased significantly since initial
recognition.
Loss allowances for premium and rent receivables will always be measured at an amount equal to lifetime ECLs. The impairment requirements
of IFRS 9 require management judgement, estimates and assumptions, particularly in the following areas, which are discussed in detail
below:
• assessing whether the credit risk of an instrument has increased significantly since initial recognition; and
• incorporating forward-looking information into the measurement of ECLs.


Measurement of expected credit losses
ECLs are a probability-weighted estimate of credit losses and will be measured as follows:
• financial assets that are not credit-impaired at the reporting date: the present value of all cash shortfalls – i.e. the difference between
the cash flows due to the entity in accordance with the contract and the cash flows that the Group expects to receive;
• financial assets that are credit-impaired at the reporting date: the difference between the gross carrying amount and the present value
of estimated future cash flows;
An asset is credit-impaired if one or more events have occurred that have a detrimental impact on the estimated future cash flows of the asset.
Expected credit losses

Expected credit losses are computed as a product of the Probability of Default (PD), Loss Given Default (LGD) and the Exposure at Default
(EAD).
ECL = PD x LGD x EAD

In applying the IFRS 9 impairment requirements, the Group follows one of the approaches below:
• The general approach

• The simplified approach
The Group will apply the approaches below to each of its assets subject to impairment under IFRS 9:
Financial Asset Impairment approach

Loans receivable General Approach
Receivables arising out of direct insurance arrangements Simplified Approach
Lease and other receivables Simplified Approach
Government securities at amortised cost General Approach
Corporate bonds and commercial paper General Approach
Deposits with financial institutions Simplified Approach
Cash and bank balances Simplified Approach
(i) The General Approach

Under the general approach, at each reporting date, the Group determines whether the financial asset is in one of three stages in order to
determine both the amount of ECL to recognise as well as how interest income should be recognised.
• Stage 1 - where credit risk has not increased significantly since initial recognition. For financial assets in stage 1, the Group will
recognise 12 month ECL and recognise interest income on a gross basis – this means that interest will be calculated on the gross
carrying amount of the financial asset before adjusting for ECL.

• Stage 2 - where credit risk has increased significantly since initial recognition. When a financial asset transfers to stage 2, the Group
will recognise lifetime ECL but interest income will continue to be recognised on a gross basis.

• Stage 3 - where the financial asset is credit impaired. This is effectively the point at which there has been an incurred loss event. For
financial assets in stage 3, the Group will continue to recognise lifetime ECL but they will now recognise interest income on a net basis.
As such, interest income will be calculated based on the gross carrying amount of the financial asset less ECL.
The changes in the loss allowance balance are recognised in profit or loss as an impairment gain or loss.
(ii) The Simplified approach

Under the simplified approach, the Group measures the loss allowance at an amount equal to lifetime expected credit losses.


Expected Credit Loss (Continued)
(ii) Simplified approach (Continued)
Definition of default
The Group will consider a financial asset to be in default when:
• the counterparty or borrower is unlikely to pay their credit obligations to the Group in full, without recourse by the Group to actions
such as realising security (if any is held); or
• the counterparty or borrower is more than 90 days past due on any material credit obligation to the Group. This will be consistent with
the rebuttable criteria set out by IFRS 9 and existing practice of the Group; or

In assessing whether the counterparty or borrower is in default, the Group considers indicators that are:

• Qualitative: e.g. Breach of covenant and other indicators of financial distress;
• Quantitative: e.g. Overdue status and non-payment of another obligation of the same issuer to the Group; and
• Based on data developed internally and obtained from external sources.
Inputs into the assessment of whether a financial instrument is in default and their significance may vary over time to reflect changes in
circumstances.
Significant increase in credit risk (SIICR)
When determining whether the credit risk (i.e. risk of default) on a financial instrument has increased significantly since initial recognition,
the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both
quantitative and qualitative information and analysis based on the Group’s historical experience, expert credit assessment and forward-
looking information.
The Group primarily identifies whether a significant increase in credit risk has occurred for an exposure by comparing:
• The remaining lifetime probability of default (PD) as at the reporting date; with
• The remaining lifetime PD for this point in time that was estimated on initial recognition of the exposure.
The assessment of significant deterioration is key in establishing the point of switching between the requirement to measure an allowance
based on 12-month expected credit losses and one that is based on lifetime expected credit losses.
• The Group monitors the effectiveness of the criteria used to identify significant increases in credit risk by regular reviews to confirm that:
• the criteria are capable of identifying significant increases in credit risk before an exposure is in default;
• the criteria do not align with the point in time when an asset becomes 30 days past due;
• the average time between the identification of a significant increase in credit risk and default appears reasonable;
• exposures are not generally transferred from 12-month ECL measurement to credit-impaired; and
• there is no unwarranted volatility in loss allowance from transfers between 12-month and lifetime ECL measurements.
Incorporation of forward-looking information
The Group incorporates forward-looking information into both its assessment of whether the credit risk of an instrument has increased
significantly since initial recognition and its measurement of ECL. It formulates a ‘base case’ view of the future direction of relevant economic
variables and a representative range of other possible forecast scenarios based on advice from the Group risk committee and economic
experts and consideration of a variety of external actual and forecast information. This process involves developing two or more additional
economic scenarios and considering the relative probabilities of each outcome. External information includes economic data and forecasts
published by governmental bodies and monetary authorities in the countries where the Group operates, supranational organisations such
as the Organisation for Economic Co¬operation and Development and the International Monetary Fund, and selected private-sector and
academic forecasters.
The base case represents a best estimate and is aligned with information used by the Group for other purposes, such as strategic planning
and budgeting. The other scenarios represent more optimistic and more pessimistic outcomes. The Group also periodically carries out stress-
testing of more extreme shocks to calibrate its determination of these other representative scenarios.
The Group has identified and documented key drivers of credit risk and ECL for each portfolio of financial instruments and, using an analysis
of historical data, has estimated relationships between macro-economic variables and credit risk and credit losses.
The predicted relationships between the key indicators and the default and loss rates on various portfolios of financial assets have been
developed by analysing historical data over the past 10 to 15 years.


Measurement of ECL
The key inputs into the measurement of ECL are the term structures of the following variables:
• Probability of Default;

• Loss given default (LGD); and

• Exposure at default (EAD).
To determine lifetime and 12-month PDs, the Group uses the PD tables supplied by Rating Agencies based on the default history of obligors
with the same credit rating. The Group adopts the same approach for unrated investments by mapping its internal risk grades to the
equivalent external credit ratings.
The PDs are recalibrated based on current bond yields and CDS prices, and adjusted to reflect forward-looking information as described
above. Changes in the rating for a counterparty or exposure lead to a change in the estimate of the associated PD.
LGD is the magnitude of the likely loss if there is a default. The Group estimates LGD parameters based on the history of recovery rates of
claims against defaulted counterparties. The LGD models consider the structure, collateral, seniority of the claim, counterparty industry and
recovery costs of any collateral that is integral to the financial asset. For loans secured by retail property, loan-to-¬value ratios are a key
parameter in determining LGD. LGD estimates are recalibrated for different economic scenarios. They are calculated on a discounted cash
flow basis using the effective interest rate as the discounting factor.
EAD represents the expected exposure in the event of a default. The Group derives the EAD from the current exposure to the counterparty
and potential changes to the current amount allowed under the contract, including amortisation, and prepayments. The EAD of a financial
asset is its gross carrying amount.
As described above, and subject to using a maximum of a 12-month PD for financial assets for which credit risk has not significantly
increased, the Group measures ECL considering the risk of default over the maximum contractual period (including any borrower’s extension
options) over which it is exposed to credit risk, even if, for risk management purposes, the Group considers a longer period. Where
modelling of a parameter is carried out on a collective basis, the financial instruments are grouped on the basis of shared risk characteristics,
which include:
• instrument type;
• credit risk grading;
• collateral type;
• date of initial recognition;
• remaining term to maturity; industry; and
• geographic location of the borrower.
The groupings are subject to regular review to ensure that exposures within a particular group remain appropriately homogeneous.
When ECL are measured using parameters based on collective modelling, a significant input into the measurement of ECL is the external
benchmark information that the Group uses to derive the default rates of its portfolios. This includes the PDs provided in the [Rating Agency
N] default study and the LGDs provided in the [Rating Agency ll] recovery studies.
Operating lease receivables
The ECL of operating lease receivables are determined at country level using a provision matrix. Loss rates are calculated with reference to
days past due and actual credit loss experience over the past five years and are multiplied by scalar factors to incorporate forward-looking
information.
Modification of contracts
The Group rarely renegotiates or otherwise modifies the contractual cash flows of securities. When this happens, the Group assesses whether
or not the new terms are substantially different to the original terms. The Group does this by considering, among others, the following factors:
• If the counterparty is in financial difficulty

• Whether any substantial new terms are introduced that affect the risk profile of the instrument
• Significant extension of the contract term when the borrower is not in financial difficulty
• Significant change in interest rate
• Change in the currency the security is denominated in
• Inclusion of collateral, other security or credit enhancements that significantly affect the credit risk associated with the loan


Modification of contracts (Continued)
If the terms are substantially different, the Group derecognises the original financial asset and recognised a ‘new’ asset at fair value and
recalculates a new EIR for the asset. The date of renegotiation is consequently considered the date of initial recognition for impairment
calculation purposes, including the purpose of determining whether a SICR has occurred.
If the terms are not substantially different, the renegotiation or modification does not result in derecognition, and the Group recalculates the
gross carrying amount based on the revised cash flows of the financial asset and recognises a modification gain or loss in profit or loss. The
new gross carrying amount is recalculated by discounting the modified cash flows at the original EIR.
Write off policy
The Group writes off financial assets, in whole or in part when it has exhausted all practical recovery effort and has concluded that there is
no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include
(i) ceasing enforcement activity; and

(ii) the Group is foreclosing on collateral and the value of the collateral is such as there is no reasonable expectation of recovering in full.
The Group may write-off financial assets that are still subject to enforcement activity. There were no write offs such assets during the year
ended 31 December 2018. (2017 – nil). The Group still seeks to recover amounts it is legally owed in full, but which have been partially
written off due to no reasonable expectation of full recovery
Accounting policies applied until 31 December 2017
The Group has applied IFRS 9 retrospectively, but has elected not to restate comparative information. As a result, the comparative information
provided continues to be accounted for in accordance with the Group’s previous accounting policy.
The classification depended on the purpose for which the investments were acquired. Management determined the classification of its
investments at initial recognition and, in the case of assets classified as held-to-maturity, re-evaluated this designation at the end of each
reporting period.
Subsequent measurement
The measurement at initial recognition did not change on adoption of IFRS 9, see description above.
Subsequent to the initial recognition, loans and receivables and held-to-maturity investments were carried at amortised cost using the
effective interest method.
Available-for-sale financial assets and financial assets at FVPL were subsequently carried at fair value. Gains or losses arising from changes
in the fair value were recognised as follows:
• for financial assets at FVPL – in profit or loss within other gains/(losses).

• for available-for-sale financial assets that are monetary securities denominated in a foreign currency – translation differences related
to changes in the amortised cost of the security were recognised in profit or loss and other changes in the carrying amount were
recognised in other comprehensive income.
• for other monetary and non-monetary securities classified as available-for-sale – in other comprehensive income.
When securities classified as available-for-sale were sold, the accumulated fair value adjustments recognised in other comprehensive income
were reclassified to profit or loss as gains and losses from investment securities.
Impairment
The Group assessed at the end of each reporting period whether there was objective evidence that a financial asset or group of financial
assets was impaired. A financial asset or a group of financial assets was impaired and impairment losses were incurred only if there was
objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and
that loss event (or events) had an impact on the estimated future cash flows of the financial asset or group of financial assets that could be
reliably estimated. In the case of equity investments classified as available-for-sale, a significant or prolonged decline in the fair value of the
security below its cost was considered an indicator that the assets are impaired.
De-recognition of financial liabilities
The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers
the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor
retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognizes its retained
interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of
ownership of a transferred financial asset, the Group continues to recognize the financial asset.


Other financial liabilities
Other financial liabilities which includes creditors arising out of reinsurance arrangements and direct insurance arrangement, borrowings
and other payable, are initially measured at fair value, net of transaction costs. Other financial liabilities are subsequently measured at
amortized cost using the effective interest method, with interest expense recognized on an effective yield basis.
Offsetting financial instruments
Financial assets and financial liabilities are offset and the net amount reported in the statement of financial position only when there is a
legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the asset and settle
the liability simultaneously.
Renegotiated loans
Loans that are either subject to collective impairment assessment or individually significant and whose terms have been renegotiated are no
longer considered to be past due but are treated as new loans. In subsequent years, the renegotiated terms apply in determining whether
the asset is considered to be past due
38.12. ACCOUNTING FOR LEASES
Leases of property and equipment where the Group assumes substantially all the risks and rewards of ownership are classified as finance
leases. Assets acquired under finance leases are capitalized at the inception of the lease at the lower of their fair value and the estimated
present value of the underlying lease payments. Each lease payment is allocated between the liability and finance charges so as to achieve a
constant rate on the finance balance outstanding. The corresponding rental obligations, net of finance charges, are included in non-current
liabilities. The interest element of the finance charge is charged to profit or loss over the lease period. Property, plant and equipment acquired
under finance leases are depreciated over the shorter of the lease term or the estimated useful life of the asset.
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases.
Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
38.13. CASH AND CASH EQUIVALENTS

Cash and cash equivalents includes cash in hand, deposits held with banks, other short term highly liquid investments with original maturities
of three months or less, and bank overdrafts.
38.14. EMPLOYEE BENEFITS
(i) Short-term benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid
if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the
obligation can be estimated reliably.
(ii) Retirement benefit obligations

The Group operates defined contribution retirement benefit scheme for its employees. A defined contribution plan is a pension plan
under which the Group pays fixed contributions into a separate entity. The Group has no legal or constructive obligations to pay further
contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior
periods.
The assets of all schemes are held in separate trustee administered funds, which are funded by contributions from both the Group and
employees. The Group and all its employees also contribute to the appropriate Social Security Fund, which are defined contribution
schemes. The Group’s contributions to the defined contribution schemes are charged to profit or loss in the year to which they relate.
(iii) Other entitlements
The estimated monetary liability for employees’ accrued annual leave entitlement at the reporting date is recognized as an expense accrual.
38.15. INCOME TAX EXPENSE
Income tax expense is the aggregate of the charge to profit or loss in respect of current income tax and deferred income tax.
Current income tax is the amount of income tax payable on the taxable profit for the year determined in accordance with the relevant
tax legislation and any adjustment to tax payable or receivable in respect of previous years. It is measured using tax rates enacted or
substantively enacted at the reporting date. Current tax also includes any tax arising from dividends.
Deferred income tax is provided in full on all temporary differences arising between the tax bases of assets and liabilities and their carrying
values for financial reporting purposes. However, if the deferred income tax arises from the initial recognition of an asset or liability in a
transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit nor loss, it is not
accounted for. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted at the reporting
date and are expected to apply when the related deferred income tax liability is settled.


38.15. INCOME TAX EXPENSE (CONTINUED)
Deferred income tax assets are recognized only to the extent that it is probable that future taxable profits will be available against which
the temporary differences can be utilized. Deferred income tax is provided on temporary differences arising on investments in subsidiaries
and associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the
temporary difference will not reverse in the foreseeable future.
The measurement of deferred tax reflects the tax consequences that would flow from the manner in which the Group expects, at the reporting
date, to recover or settle the carrying amount of its assets and liabilities. For this purpose, the carrying amount of investment property
measured at fair value is presumed to be recovered through sale. Deferred tax assets and liabilities are offset only if certain criteria are met.
38.16 .DIVIDENDS
Dividends payable to the Group’s shareholders are charged to equity in the period in which they are declared. Proposed dividends are
shown as a separate component of equity until declared.
38.17. SHARE CAPITAL

Shares are classified as equity when there is no obligation to transfer cash or other assets. Incremental costs directly attributable to the issue
of equity instruments are shown in equity as a deduction from the proceeds, net of tax.
38.18. COMPARATIVES
Where necessary, comparative figures have been adjusted or extended to conform to changes in presentation in the current year.

Supplementary information
GROUP REVIEW—FIFTEEN YEARS
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
KShs million

Shareholders’ Funds 26,184 23,552 19,946 19,098 15,439 12,431 8,020 6,154 5,114 3,389 2,871 3,606 3,393 2,370 2,094
Share Capital 362 362 329 329 299 299 299 272 248 225 225 225 180 180 180
Long-Term Business
67,243 59,426 48,827 42,337 38,652 28,743 23,476 18,802 14,637 11,495 11,730 9,333 6,504 5,115 4,081
Funds
Total Assets 114,168 104,968 90,568 82,378 74,506 61,159 47,418 38,040 30,691 23,736 20,203 17,942 15,356 11,591 9,724
Profit Before Tax 5,410 5,161 4,563 4,145 3,949 3,151 2,693 2,144 2,053 1,116 901 810 665 471 359
Profit Attributable to
3,806 3,932 3,297 2,814 2,880 2,255 2,115 1,802 1,756 825 636 617 528 348 241
Shareholders
Profit Attributable to Non
371 298 379 307 224 248 169 108 83 89 77 46 32 47 36
- Controlling interest
Dividends to
652 652 560 560 509 419 419 299 272 203 191 191 153 144 90
Shareholders
Dividend Cover Ratio 5.84 6.03 5.89 5.03 5.66 5.38 5.05 6.02 6.45 4.07 3.33 3.23 3.45 2.42 2.68
Bonus Issue 0:00 0:00 1:10 0:00 1:10 0:00 0:00 1:10 1:10 1:10 0:00 1:04 0:00 0:00 0:00
*Earnings Per Share
(KShs) (par value 52.52 54.26 45.49 38.83 39.73 31.12 29.18 24.86 24.23 11.38 8.78 8.51 7.29 4.80 3.33
KShs 5)
* Earnings per share has been calculated on 72,473 million shares for all the years.

121
WINNERS OF
Jubilee Holdings Integrated Report & Financial Statements 2018

29 AWARDS
Supplementary information
AND YOUR
AKI GENERAL INSURANCE COM-
PANY OF THE YEAR
TRUST! AKI COMPANY OF THE YEAR
AWARDS
AWARD
AKI AGENT OF THE YEAR 2019 KENYA
General Insurance Company of the Year - Winner

Life Insurance Company of the Year - 2nd Runners Up
CIO 100 EA AWARD 2018 KENYA
Insurance Category - Winner
REAL ESTATE EXCELLENCE AWARD 2018 KENYA
Plate Glass Insurer of the Year - Winner

AKI AGENT OF THE YEAR FIRE AWARDS (INSURANCE)
AWARD
FIRE AWARDS 2018 - KENYA
Insurance Category
Jubilee Holdings - 1st Runners Up
AGENT CHOICE AWARD 2018 – KENYA
Training Excellence &Impact - Winner

Best Claim Settlement - Winner
Risk Management & Solutions - Winner
Best Counter Fraud Initiative - Winner
Best Corporate Social Responsibility - Winner
Innovative Company of the Year -Winner
Customer Champion - 1st Runners Up
CIO 100 AWARD Best Product - 1st Runners Up DIGITAL INCLUSION AWARD
DIGITAL INCLUSION AWARDS 2018 - KENYA
Insurance Category - Winner
THINK BUSINESS AWARDS 2018 - KENYA
Most Innovative Insurance Company - Winner

The Training Award - Winner
Claims Settlement Award - Life Insurance - Winner
General Insurer of the Year -1st Runners Up
Claim Settlement Award - General insurance -1st Runners Up
Medical Underwriter of the Year - Group -1st Runners Up
Medical Underwriter of the Year - Personal - 1st Runners Up
Best Company in Sustainable CSR - 1st Runners Up
AGENTS CHOICE AWARD Life Insurer of the Year - 2nd Runners Up THINK BUSINESS AWARD
Best Insurance in Product Distribution and Marketing - 2nd Runners Up
AFRICAN INSURANCE AWARDS 2018 - KENYA
Insurance Innovation of the year 2018 - Winner
CORPORATE GOVERNANCE AWARDS UGANDA 2018
Insurance Companies - Winner
AKI AGENT AWARDS

AAYA 2018 - KENYA
Most Improved Company - Individual Life - Winner

Company of the Year - 1st Runners Up
AFRICAN ASSURANCE AWARD
CORPORATE GOVERNANCE
AWARD
Living free is...
giving hope
through music
At Jubilee Insurance we believe that everyone
should have access to economic opportunities,
medical care, education and creative disciplines.
Jubilee Insurance is a proud sponsor of Ghetto

Classics, the flagship programme of the Art of
Music Foundation. This community programme
involves over 300 children in Korogocho –
one of Kenya’s largest slums – and over 600
more underprivileged children countrywide.
The children are taught life skills through the
discipline of studying music and also provided
with income generating opportunities.
CORPORATE SOCIAL RESPONSIBILITY
MAASAI MARA CONSERVATION TRUST - KENYA
Over the next 5 year KShs. 15 million has been committed to the Maasai Wilderness Conservation Trust in Kajiado to support their efforts In:
Conservation of Tsavo West By purchasing a specialized motorcycle to assist the conservancy warders in effective patrols to minimize human-
wildlife conflict in the areas.
Offering university bursaries to 48 bright needy students from the community from various universities.
Providing health services to the community by training a member of the community to be a nurse and purchase of an ultrasound machine for the
community health center.
BREAST CANCER AWARENESS - KENYA
Jubilee Insurance Kenya Team led by GCEO Dr. Julius Kipng’etich visited the
Cancer Pediatric Ward at Kenyatta National Hospital to deliver donations and
give support to children affected by cancer as part of the “Live Free!” agenda. The
visit was meant to cheer-up the children battling with cancer, create awareness
and encourage our staff to get screened for various forms of cancer.

CORPORATE SOCIAL RESPONSIBILITY (CONTINUED)
EAR OPERATION - BREAKING THE SILENCE - KENYA
So far, we have managed to conduct 113 successful ear surgeries both in

Nairobi and outside with a total of 148 since the inception of the project
in 2017. Mama Lucy Hospital : 10, Kisumu Surgical Camp : 27, Machakos
Surgical Camp : 30, Nanyuki Surgical Camp : 30, Kisii Surgical Camp : 16
WORLD WATER DAY - KENYA
In pursuit of environmental conservation, Jubilee Insurance Kenya participated

in a tree planting exercise in Mwingi West Constituency in partnership with
Kenya Organization for Environmental Education in commemoration of World
Water Day “Leaving no one behind”. Over 500 tree seedlings were planted
with another 2,000 seedlings distributed among the 19 participating schools
to be planted in their respective Grounds.

CORPORATE SOCIAL RESPONSIBILITY
Living free is...

the freedom to see
At Jubilee Insurance we understand that
everyone should have access to economic
opportunities, medical care, education
and creative disciplines. We believe in
transforming the lives of every beneficiary
of our CSR projects and ensuring that we
impact their lives wholesomely, one life at
a time.

EYE PROJECT - FREEDOM TO FOCUS - KENYA
In partnership with Kenya Society for the Blind, since 2017 Jubilee Insurance has been a proud
sponsor of the Eye Project. To date the project has provided important eye treatment to more than
1,500 beneficiaries and provided spectacles to more than 250 public primary pupils.
BEYOND ZERO CAMPAIGN - KENYA
Jubilee Insurance through the “Maisha Fiti” wellness program

donated KShs.3m for mobilization of medical resources and provision
of GPA covers for the over 27,000 participants, officials and volunteers
during the marathon. The initiative is in line with our core business
agenda to increase access to, and uptake of, health insurance.

LIVE FREE PAINTING COMPETITION - KENYA
So far the Live Free Painting Competition has awarded 33 students

with full Secondary school education scholarship.
The 25 national winners underwent a mentorship training in abstract

thinking through art and were exposed to real works of art at the
GoDown Art Center and Nairobi Primary School.
PATIENT VISIT - TANZANIA
In October 2018, as part of giving back to the society, the Jubilee insurance team devoted a few days away from work to spend time with patients
in different hospitals in Dar es Salaam, where they provided patients with words of encouragements and hope.

renovation OF cloakroom, classroom and teacher’s houseS - TANZANIA
Mbeya - Itiji primary school cloak room (before) Cloak room (after)
Mwembesongo primary school - renovations (before) Renovations (after)
Mlimwa”B” primary school toilet construction (before/after) Jang’ombe primary school class renovation (before/after)
Madenga primary school toilet construction (before/after) Katerero primary school teachers houses (before/after)
Seven key schools were identified for renovations in Tanzania during the 80th Year anniversary. Renovations were completed in 2018.

KIDS OF AFRICA MARATHON - UGANDA
Our Uganda Team joined the Kids of Africa, in a fun run by sponsoring Ugsh. 10
million for the marathon. The funds will go towards the construction of modern
sanitation facilities for the kids in public schools in Bugiri Village, Kisubi Ward,
Katabi Town Council and Wakiso District.
BLOOD DONATION DRIVE - UGANDA
The Jubilee Life Insurance Uganda Team partnered with EICA (East Indian Cultural Association) and Uganda Blood Transfusion Services to power a
blood donation drive in December 2018. Over 120 units of blood were donated on the day.

BREAST CANCER AWARENESS - UGANDA
The Jubilee Insurance Uganda Team took part in the Breast Cancer Awareness month campaign to carry out sensitization, screening, provide support
and educate the victims/survivors at the Uganda Cancer Institute.
ASANTE AFRICA - YOUTH LEADERSHIP AND ENTREPRENEURSHIP INCUBATOR

PROGRAM - EAST AFRICA
Jubilee Insurance Kenya donated promotional items for the Asante Africa Foundation
– Youth Leadership and Entrepreneurship Incubator Program that took place in Arusha
Tanzania.
The more than 100 youth from the four East African countries represented were
empowered with tools on job readiness, entrepreneurship skills and personal development
to become change agents whose dreams and actions transform the future of their
communities and countries.

ADVERTISEMENTS
JUBILEE INSURANCE INTRODUCES MAISHA FITI, THE NEXT FRONTIER

IN HEALTH INSURANCE WITH A RANGE OF CARE AND LIFESTYLE
MANAGEMENT PROGRAMS.
Wellness · Lifestyle · Nurturing
PROGRAMS INCLUDE:
• LOYALTY REWARDS PROGRAM • MUM’S CLUB
• SENIORS WELLNESS PROGRAM • LIFESTYLE MANAGEMENT PROGRAM
For more information call: 0709949000 | Email: [email protected]

Web: www.jubileeinsurance.com | Facebook: /jubileeinsurance

ADVERTISEMENTS (CONTINUED)
ACCIDENTS
HAPPEN
ANYWHERE
LIVING A JUBILEE INSURANCE
PERSONAL ACCIDENT COVER
WILL LIFT YOU UP
FREE IS...
ACHIEVING YOUR DREAM
CALL US TODAY:
0792 666 838
Call us today: 0792 666 838
GENERAL • PENSION • MEDICAL • LIFE
www.jubileeinsurance.com
THE FUTURE CFO

HELP THEM ACHIEVE THEIR
POTENTIAL. INVEST IN A
JUBILEE LIFE INSURANCE
EDUCATION PLAN
Call us for free on: 0800 783030 www.jubileeinsurance.com

Living free is...
creating memories
At Jubilee Insurance we believe that everyone should have access to affordable, high quality
healthcare. We were therefore very proud to be a key sponsor of the Beyond Zero half marathon in
March 2019. Launched in January 2014 by Her Excellency Margaret Kenyatta, The First Lady of the
Republic of Kenya. Beyond Zero is a charitable organisation with a mission to ensure that all Kenyan
mothers deliver safely, and that their children are born healthy, remain healthy and are HIV free.

NOTES

NOTES

REGIONAL GROUP OFFICES AND BRANCHES
KENYA MBALE P.O Box 20524, Dar Es Salaam

Plot 2 ,Bugisu Cooperative Union Building, Room no. 206, T: +255 22 2110176/80
HEAD OFFICE 2nd Floor, Republic Street, Mbale E: [email protected]
Jubilee Insurance House, Wabera St. T: +256 454 431 234
P.O. Box 30376 00100 GPO, Nairobi, Kenya M: +256 773 350 778 BRANCHES
T: +254 020 328 1000 E: [email protected]
QUALITY CENTER
BRANCHES PARK ROYAL RETAIL OFFICE Dar Es Salaam, Ground 2 West Shop No G13c
Plot 69, Park Royal,2nd Floor, Buganda Road. Quality Centre Shopping Mall, Nyerere Road
BUNGOMA M: + 256 776 220 234 T: +255 22 2862124
HIBHO Plaza, 1st Floor, Moi Avenue E: [email protected] E:[email protected]
T: +254 709 901 515
UGANDA LIFE MWANZA
ELDORET Nyanza Co-operative Union Building, Kenyatta Road
Imperial Court Eldoret - 1st Floor, Nairobi/ Uganda Highway HEAD OFFICE P.O. Box10456 Mwanza,
T: +254 709 901 510 14, Parliament Avenue T: +255 28 2541655/+255 25 2500299
East Upper Podium Floor, Jubilee Insurance Center E: [email protected]
KISII P.O. Box 7122, Kampala
New Sansora Building 1st Floor, Town Centre Hospital Road T: 0312 178 800 MBEYA
T: +254 058 203 1645 E: [email protected] NBC (1997) Ltd Building, Ground Floor, Karume Avenue
P.O. Box 2182, Mbeya
KISUMU AGENCY OFFICE T: +255 25 2503172
Jubilee Insurance House, Oginga Odinga Road, 3rd Floor E: [email protected]
P.O. Box 378 Kisumu, KAMPALA WEST
T: 0709901700 Plot 26, Park Royal Building, Room A4, 4th Floor ZANZIBAR
Buganda Road ZSTC Investment Building, Ground Floor, Malawi Road
THIKA T: 0392 175 438 P.O. Box 2344 Zanzibar
Maisha Heights 3rd Floor, Thika Town T: +255 24 2239243
T: 0709901729 / 0702957979 JINJA E: [email protected]
Plot 28-30 ,City Hotel Building, Ground Floor, Clive Road
MERU T: 0393 000 021 MOROGORO
Alexander House, 2nd Floor, Meru Town Moi Avenue Hood Property Building, 1st Floor, Ngoto Street
T: +254 064 643 0722 ARUA P.O. Box 190, Morogoro
+254 709 901 525 Plot 16-22, KKT Plaza Building, Block A, Room A6, T: +255 23 2613966
2nd Floor, Duka Road E: [email protected]
MOMBASA T: 0393 000 207
Jubilee Insurance Building, 3rd Floor, Moi Avenue, ARUSHA
P.O. Box 90220 - 80100, Mombasa MBALE NSSF Mafao House, 2nd Floor, Old Moshi Road
T: 0709901600 Plot 30, Generous Towers 1st Floor, Kumi Road P.O. Box 1836, ARUSHA
T: 0393 000 022 T: +255 27 2520131
MOMBASA ROAD E: [email protected]
Tulip House Ground Floor
T: +254 071 554 5419 / Finance: +254 071 554 5444 MBARARA DODOMA
Plot 3B, New Kasaka Building, 1st Floor, Stanley Road ACT Building, Ground floor, Corner of Hatibu St /7th Road
NAKURU T: 0393 000 023 P.O. Box 11027, DODOMA
Tower One, Moi Road T: +255 26 2320166
T: +254 051 221 1119/ 0702 958 897 ENTEBBE E: [email protected]
Plot 90 First Floor, Entebbe-Kampala Road,
NYERI T: 0392 178 039 TEGETA,
Sohan Plaza, 3rd Floor, Moi Nyayo Way Kibo Commercial Complex Block E 1st Floor,
T: +254 798 449 360 GULU Old Bagamoyo Road
Plot 20 Gulu City Mall building Room ,13, 2nd floor, T: +255 22 2926303
WESTLANDS Gulu Avenue E: [email protected]
Fuji House, 6th Floor wing B, Westlands T: 0392 178 048
T: +254 709 901 520 MAURITIUS
HOIMA
UGANDA GENERAL Plot 33 Messiah Towers 1st Floor, Hoima – Kampala Road HEAD OFFICE
T: 0392 178 050 One Cathedral Square, Mezzanine Floor,
HEAD OFFICE Pope Hennessy Street, Port Louis
MASAKA T: 00230 202-2200
Jubilee Insurance Company of Uganda Limited Plot 19, Kwewayo Building ,Room 9,1st Floor, E: [email protected]
Plot 14, Jubilee Insurance Center 1st Floor, Parliament Avenue Edward Avenue
P.O. Box 10234 Kampala T: 0393 000 206 BRANCHES
T: +256414311701
E: [email protected] KAMPALA EAST QUATRE BORNES
Ntinda Complex, Block B Ground Floor, Stretcher road Ground floor, France Centre, St Jean Road, Quatre Bornes
AGENCY OFFICES T: 0393 178 800 T: 00230 202-2200
MBARARA TANZANIA BEAU BASSIN - BRANCH

Plot 4, Nakumatt Building, Room No. 28, 2nd Floor, Mbarara 178, Royal Road, Beau Bassin
T: +256 485 420 116 TANZANIA GENERAL HEAD OFFICE T: 00230 454-5700
M: +256 750 867 297 Jubilee Insurance Company of Tanzania Limited.
E: [email protected] Amani Place, 6th Floor, Ohio Street BURUNDI
P.O Box 20524, Dar es Salaam
T: +255 22 2135121-4 HEAD OFFICE
JINJA F: +255 22 2135116 Jubilee Insurance Company of Burundi
Plot 82, Arcade 82, Room No.3, 1st Floor, Main Street Arcade, E: [email protected] 8 Chaussée Prince Louis Rwagasore,
Jinja Immeuble Jubilee Centre,
T: +256 434 122 369 TANZANIA LIFE HEAD OFFICE 2290 Bujumbura, Burundi,
M: +256 750 867 390 Jubilee Life Insurance Company of Tanzania Limited. T: +257 22 27 58 20/1/2,
E: [email protected] Amani Place, 9th Floor, Ohio Street E:[email protected]
www.jubileeinsurance.com

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SINCE 1937

INTEGRATED REPORT & FINANCIAL STATEMENTS 2018

At Jubilee Insurance Living Free is our

Jubilee Holdings Integrated Report & Financial Statements 2018 1

Jubilee Holdings Integrated Report & Financial Statements 2018 3

Profit Before Tax (KShs Billion) Total Assets (KShs Billion)

4 Jubilee Holdings Integrated Report & Financial Statements 2018

Jubilee Holdings Integrated Report & Financial Statements 2018 5

Jubilee Insurance, Mombasa Branch

6 Jubilee Holdings Integrated Report & Financial Statements 2018

Jubilee Holdings Integrated Report & Financial Statements 2018 7

3. To re-elect the following Directors:

(i) Mr. Juma Kisaame

a. Mr. Zul Abdul

By Order of the Board

8 Jubilee Holdings Integrated Report & Financial Statements 2018

I am pleased to present Jubilee Holdings Limited’s (“JHL”/”Jubilee”)

EAST AFRICA’S ECONOMY

The East African regional economy has demonstrated continued

On the regional front, Tanzania’s GDP is estimated to have grown

This was a challenging year for the insurance industry as highlighted

Preliminary data shows that the insurance industry in Kenya grew by

Jubilee Holdings Integrated Report & Financial Statements 2018 9

We continue to be optimistic as we focus on our strategic goals

Jubilee Holdings Integrated Report & Financial Statements 2018 11

Jubilee Holdings Integrated Report & Financial Statements 2018 13

14 Jubilee Holdings Integrated Report & Financial Statements 2018

Board Nominating and Human Resource Committee Board IT Committee

Jubilee Holdings Integrated Report & Financial Statements 2018 15

Mr. Nizar Juma (75) Non-Executive Chairman

Mr. Sultan Ali Allana (59) Non-Executive Director

Mr. Lutaf Kassam (65) Non-Executive Director

Mr. John Metcalf (59) Non-Executive Director

Mrs. Jane Mwangi (55) Non-Executive & Independent Director

Mr. Juma Kisaame (56) Non-Executive Director

Mr. Shabir Abji (60) Non-Executive & Independent Director

Mr. Zul Abdul (67) Non-Executive & Independent Director

16 Jubilee Holdings Integrated Report & Financial Statements 2018

Mr. Ashif Kassam (50) Non-Executive & Independent Director

Mrs. Margaret Kipchumba (45) Company Secretary

Jubilee Holdings Integrated Report & Financial Statements 2018 17

Jubilee Insurance is the founder and sponsor

Jubilee Holdings Integrated Report & Financial Statements 2018 19

Composition of the Board

Changes in Board membership

Induction of New Board Members

20 Jubilee Holdings Integrated Report & Financial Statements 2018

Role of the Board

Name April May August November

Board Audit & Compliance Committee (BACC):

Board Nominating and Human Resource Committee:

Jubilee Holdings Integrated Report & Financial Statements 2018 21

Board Finance Committee:

Board Information Technology Committee:

Board Property Committee:

Disclosure on related party transactions:

INSIDER TRADING POLICY

• relates to the Company and the Company’s securities;

22 Jubilee Holdings Integrated Report & Financial Statements 2018

* Pakistani Tanzanian *Ugandan **** British