UAP Insurance Kenya posts 316pc increase in profit
Noel Wandera @NoelWandera5
UAP Insurance Kenya has announced a Sh1.2 billion profit before tax (PBT) in its 2019 financial results, a 316 per cent rise compared to Sh299 million posted the previous year.
UAP Insurance Kenya managing director David Kuria attributed the sharp increment in profitability to digitisation of the company’s business solutions, prudent risk selection, innovation in claims value chain and cost control.
“This good performance is attributed to our strategic focus on profitable growth and providing superior customer experiences through digitisation of our solutions and enhancing our discipline in operation excellence.
In addition, we implemented prudent risk selection, innovation in claims value chain and cost control, which are a key strategic initiatives geared towards enabling us to achieve these great results,” said Kuria.
During the period under review, the insurer’s gross written premiums profitably grew by one per cent from Sh 9.3 billion in 2018 to Sh9.4 billion in 2019, while the net earned premiums increased by two per cent.
Despite the net claims payables marginally increasing by three per cent in line with business growth, the claims ratio improved from 69 per cent the prior year to 68 per cent in 2019, driven by the company’s focus on profitable business growth and the claims cost management initiatives undertaken.
Kuria said the high profitability was also boosted by good investment income returns, where yields on government securities remained relatively stable in the year because of the attractive bond returns and the risk-free nature of government securities.
He said equities also performed well, following a recovery from one of the worst performances in 2018.
UAP Insurance Kenya boasts a strong balance sheet with an asset base of Sh16 billion and an equity of Sh 7 billion.