UAP posts Ksh.252 million half year profit

UAP Holdings has followed its peer Britam back into the profitable path after booking a Ksh.252 million half year profit to June to reverse from a previous Ksh.305 million loss.

The profits for the regional based underwriter have been anchored on improved operating income alongside gains in cost containment across the six months.

For instance, UAP’s total income has improved by 36.5 per cent to Ksh.13.1 billion with net earned premiums hitting Ksh.9 billion from a lower Ksh.7.7 billion.

Investment income for the Group has also soared to Ksh.2.9 billion from Ksh.1.3 billion last year.
The rise in investment income is attributable to tidy returns from the Group’s investment in Kenya’s equities market.

Meanwhile, UAP has held down its total expenses and commissions at Ksh.4.6 billion, a marginal jump from a flat Ksh.4 billion despite a 46.9 per cent surge in net claims payable.

The marginal increase in expenses has been attributed to the Group’s recent transfer of the Old Mutual Life Assurance Company Limited (OMLAC) to the Old Mutual Holdings Limited.

UAP says future growth remains premised on attaining efficiency and improving customer experiences as demonstrated by its recent business consolidation exercise.

“As part of this strategy, we have concluded the takeover of OMLAC by UAP Life Assurance Limited which will result in a combined life business in the Kenya market and we expect to unlock the synergies that this presents going forward. We remain cautious given that the pandemic is still unfolding and are supportive of ongoing vaccination efforts as the governments work towards reducing the spread of the virus,” said UAP Holdings Chief Executive Officer Arthur Oginga.

UAP Holdings board of directors have not recommended an interim dividend payment for the period.