Slower growth in customer claims and increased investment income helped UAP Holdings rebound to Sh496.76 million half-year net profit from Sh143.13 million loss a year earlier, the financial services group announced on Tuesday.
Net claims rose to Sh4.96 billion in the six-month period from Sh4.90 billion, a slight 1.3 per cent growth year-on-year compared to 26 per cent in the same period last year on the impact of change in the method of provisioning for claims.
This was after the Insurance Regulatory Authority directed insurers in life business to use gross premiums valuation (GPV) methodology when provisioning for liabilities rather than the net premiums valuation (NPV) previously.
“Good performance in topline coupled with a marginal increase of 1.3 per cent in net claims payable contributed to an improvement in profitability,” the company, whose shares trade on the over-the-counter (OTC) market, said in a statement.
Total revenue rose 8.99 per cent to Sh9.58 billion, largely lifted by investment income which nearly jumped by half to Sh1.84 billion from Sh1.25 billion in June 2016, on the back of improved performance of the Nairobi Securities Exchange.
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