UAP Holdings Limited (UAPHL) has announced that it has registered a Ksh. 383 million net profit for the half year ending 30th June 2019. In the same period in 2018, the company reported a net prfoit of Ksh. 190 million.
Profit before tax for the period stood at Ksh. 517 million as compared to Ksh. 445 million in the same period in 2018.
Peter Mwangi, UAP Old Mutual Group CEO in his address to investors said, “We attribute the good performance to a steady growth in Net Earned Premium coupled with robust savings in operating expenses which declined by 8% year-on-year”. He also stated that the cost reduction was a result of payroll savings realized after the reorganization exercise in H1 2018 and concerted efforts to manage expenses group-wide”.
The claims experience increased due to the operating environment particularly for the Medical business and additional boosts to reserves in the Life Business because of growth. The total impact was a rise in Net Claims expense. Investment Income declined by 7.7% mainly due to the impact of property valuation write-downs. Although the NSE 20 Index on the Nairobi Securities Exchange had negative returns for the period, the investment portfolio fared relatively well with the only adverse impact from the property portfolio.
UAP Holdings Limited is one of the leading insurance and financial services groups in eastern Africa with a network of branches and operational subsidiaries spread across the greater eastern and central Africa regions. The group’s headquarters are located in Nairobi, Kenya, with subsidiaries in Kenya, Uganda, South Sudan, Rwanda, Tanzania, the Democratic Republic of Congo, and Mauritius. The Mauritius units are holding companies for the non-Kenyan operations.
In 2015, Old Mutual expanded its East African presence by acquiring a 23.3% stake in UAP holdings for Kshs. 8.8 billion. In 2015, Kenyan Old Mutual acquired the shares in UAP Holdings previously owned by Abraaj, Africinvest, and Swedfund, amounting to 37.33 percent of total shareholding, for US$155.5 million (KSh. 14.2 billion), thereby raising Old Mutual’s ownership in UAP Holdings to 60.66 percent.
The companies that comprise UAP Holdings include;
UAP Insurance Company Limited – Nairobi, Kenya – 100% Shareholding – The flagship company of the group. Offering general insurance.
UAP Life Assurance Limited – Nairobi, Kenya – 100 percent shareholding – Offering life Insurance.