UAP Old Mutual profits jump 101.5pc to Sh383mn in HY19September 2, 2019
NAIROBI, Kenya, Sep 2- UAP Old Mutual Group has announced an increase in profit after tax of Sh383 million in its half year results 2019.
This is a 101.5 per cent increase from the Sh190 million that was registered during a similar period last year.
The group has attributed the improved performance to reduced expenses on its operations.
“We attribute the good performance to a steady growth in Net Earned Premium with robust savings in operating expenses which declined by 8 percent,” said UAP Old Mutual Group Chief Executive Officer Peter Mwangi.
“The cost reduction was also as a result of payroll savings realized after the reorganization exercise in half year 2018 and concerted efforts to manage expenses groupwide,” he adds.
The company’s claims experience also rose due to 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 however Investment Income declined by 7.7 percent mainly due to the impact of property valuation write-downs.
Mwangi also said the group will also continue investing in technology to meet customer’s needs.
“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,” said the group’s head.
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.