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UAP Old Mutual posts Sh1.2b profit

Zachary Ochuodho @zachuodho

Diversified financial services provider, UAP Old Mutual has announced a 46.5 per cent after tax profit growth for its 2017 full year results. The earnings jumped to Sh1.21 billion from Sh826 million registered in 2016 mainly due to improved underwriting and investment returns.

Speaking to shareholders yesterday, Group chief executive officer, Peter Mwangi (pictured) said the group’s financial performance continues to improve after the 2015 acquisition by Old Mutual Plc.

He said the group registered a marked improvement in business performance despite operating in a difficult environment in the country and the wider region.

“All the subsidiaries returned profits apart from South Sudan – which due to insecurity performed badly,” he said, adding, however, that the situation has since improved.

Mwangi said the prolonged electioneering in Kenya and depressed economic activity were some of the challenges experienced during the period. Group chief financial officer Joe Mutugu said the net earned premium grew marginally by 0.5 per cent to Sh15.5 million because of a decision to focus on profitable revenue growth.

He said the company’s market share in key lines of business, particularly, health in Kenya, slightly declined by 10.7 per cent but property and casualty insurance increased by 4.0 per cent.

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