Construction of multi-million dollars hostels in Kenya to commence soon
UAP Holdings Limited (UAPHL) recorded an improved year-on-year performance with Profit Before Tax (PBT) of KES 517M compared to KES 445M in H12018, an increase of 16.3%, according to its half year financial results for 2019.Peter Mwangi, UAP Old Mutual Group CEO told investors, “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 Groupwide.
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.
In aggregate, the Group’s PBT grew and consequently Profit After Tax (PAT) rose from KES 190Mn in H12018 to KES 383Mn in H12019 marking 101.5% growth.
In his address, Mr. Mwangi said “The execution of our strategy continues apace with continuous investments in our people and technology to ensure that we meet out stakeholder expectations especially that of our customers. The operating environment in East Africa is supportive and the potential for financial services is substantial promoting our investment in the region”.