obiero wrote:VituVingiSana wrote:https://www.businessdailyafrica.com/corporate/companies/Jubilee-survived-2018-insurance-losses/4003102-5118780-n50hdkz/index.html How Jubilee survived 2018 insurance industry losses
Like a true Indian, he lets out his business secrets but still prospers.. Very good strategies by the way
I did not read any "secrets" but that JIL executed well.
1) Keep costs low. "We had the lowest expense ratio in the industry"
2) Diversify. JIL is a regional (not Kenyan) insurer. "Our growth in Uganda and Tanzania strengthened our market leadership" "diversified by investing in a number of quality companies"
3) Sustainable and Conservative growth and investments. "Our conservative approach to investments" "putting more of our money in government bonds." "government guaranteed investments to get return in dollar terms."
4) Smart/Good Investment Allocation policy. "took a decision about five years ago to cut our exposure at NSE gradually"
5) Digital channels to expand the reach "automated simple tasks like giving quotations to customers" "customer service team to handle complex enquiries."
I think Jubilee has a superb board which pushes the management to execute on their objectives.
The Chairman is also listed as a major shareholder.
The conservative investment approach, lid on expenses and digitization has helped JIL do very well over the years. JIL makes errors too but overall it is well run.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett