UAP Holdings Limited has recorded a decline in Gross Written Premium at Ksh 9.7Bn (-2.5% vs. H1 2017) and Net Earned Premium of Ksh 9.9Bn marking 0.3% growth for the same period.
Peter Mwangi, the Group CEO, cited deliberate efforts to acquire profitable accounts and more difficult operating conditions in South Sudan, and to a lesser degree Tanzania as reasons for the decline in revenue.
However, in its financial results for H1 2018 the Life business grew 14.1% for the period.
Investment Income grew 11% despite the deterioration in the performance of Kenyan equities due to steady income from fixed income and the investment properties.
Mwangi also cited continued focus on costs as key with a 0.4% reduction in operating expenses realized in H1 2018.
The Group has been making significant investments in technology and process improvements including installation of new business systems.
Mwangi explained that the consequent increase in operating efficiency necessitated the optimisation of headcount through a reorganisation exercise.
This resulted in Profit before Tax (PBT) of Ksh445.6Mn compared to Ksh658.7Mn in H1 2017 representing a decrease of 32.4%.
Reorganization costs for the period were KES 335.1Mn:excluding these costs PBT was Ksh 780.7Mn compared to Ksh 681.8Mn in H1 2017, a growth of 14.5%.
UAPHL’s Profit after Tax (PAT) was Ksh 190.9Mn, a decrease from Ksh 496.8Mn in H1 2017 61.6% lower.
Additionally, an increase in deferred tax expense in some of the subsidiaries increased the tax expense for H1 2018 which also reduced PAT.
Addressing investors in Nairobi, Mr. Mwangi noted that the overall political and economic environment in East Africa was supportive of growth.
He also added that the latest peace agreement in South Sudan was grounds for cautious optimism.
Mwangi stated: “We are pursuing a customer centric strategy aligned with our digital projects.
To this end, we have rolled out The Dream Enabler App to enhance interaction with customers and intermediaries.
This also coincides with the ongoing brand repositioning campaign which will allow our consumers to experience a truly consumer centric brand.”