UAP narrows full year loss to Ksh.1.1 billion

Underwriter UAP Holdings Plc has narrowed its full year loss by 15.4 per cent to Ksh.1.1 billion from Ksh.1.3 billion.

The loss reduction is on the back of a 26 per cent rise in total income to Ksh.27.1 billion from Ksh.21.5 billion.

This as gross written premiums by the underwriter improved by 30 per cent to Ksh.26.7 billion on gains in the long-term insurance business while net invest income was up by 17.9 per cent to Ksh.4.6 billion.

“The growth in net interest income was driven by the recovery in the Kenya equities market, growth in investable assets and the disciplined collection of premium receivables,” noted the Group’s Chief Executive Officer Arthur Oginga.

At the same time, the insurer cut its operating expenses by nine per cent on operational efficiencies resulting from investments in technologies.

Nevertheless, UAP’s net claims payable grew ahead of income by 38.6 per cent primarily as a factor of increased claims from its medical and motoring business.

“The higher net claims were primarily driven by increased medical claims relating to COVID-19 cases, worsened by the motor books and hardened by reinsurance terms which reduced recoveries from reinsurance contracts for the underwriter,” added Mr. Oginga.

UAP is betting on the integration of financial services across its East African market to improve future earnings.

During the year UAP, concluded the merger of its life business in the Kenyan market and has begun rebranding its regional business to operate under the Old Mutual Brand.