UAP Holdings Registers KES 1.21Bn Profit after Tax

UAP Holdings has announced profit after tax of 1.21 billion shillings representing a 46.49 percent year-to-year growth.

The growth, according to the management, was bolstered by improved underwriting and solid investment income.

Gross written premium declined by 0.50 percent on a year-to-year basis to 19.29 billion shillings with the health business retreating 10.70 percent on the same basis as Property & Casualty edged up 4.00 percent.

The firm’s strategy of focusing on profitable revenue streams has seen the insurer scaling slightly its Health business in Kenya.

Net Earned Premium posted a marginal 0.50 percent growth of 15.50 billion shillings.

Investment income rebounded in the year posting a 27.87 percent jump to 3.98 billion shillings buoyed by stable returns from fixed income coupled with the increase in rental income.

Net claims payable declined 4.50 percent driven by the scale down in the Kenyan health business segment while operating and other expenses increased 8.20 percent.

The firm concluded a restructuring process in March last year which will result in cost savings.

The Board of Directors has proposed a dividend payment of 1.70 shillings per share. The company trades at a P/B of 2.0x against the sector median P/B of 1.13x. The return on equity (ROE) stands at 6.9 percent against an industry median of 11.3 percent.