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Companies

UAP Insurance Kenya profit rises to Sh970m

UAP
A UAP Holdings Limited poster. FILE PHOTO | NMG 

UAP Insurance Kenya’s profit for the year ended December 2019 jumped more than four times on increased investment income and reduced impairment costs amid flat earnings from its core business.

The insurance subsidiary of UAP Holdings reported profit surge to Sh970.45 million from Sh171.62 million a year earlier, a growth of 465.48 percent.

The firm’s earnings were largely lifted by a 65.11 percent rebound in investment income from sources such as shares trading on the Nairobi bourse and government papers, while investment write-offs related to Tanzanian operations by parent company dipped 78.70 percent to Sh94.26 million.

Net premiums earnings from policyholders, its core business, were nonetheless flat, rising 1.9 percent to Sh8.30 billion.

The company, which was affected the most when its parent company (UAP Old Mutual) laid off 89 staff in 2018, paid out nearly Sh5.55 billion in claims and benefits to policyholders, a 2.83 percent rise over the previous year.

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“This performance is attributed to our focus on profitable growth and providing superior customer experiences,” UAP Insurance Kenya managing director David Kuria said in a statement.

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