This archive report was first published on 2 September 2019.
On September 2, 2019, UAP Holdings Limited (UAPHL) released its half-year financial results for 2019, showcasing a notable improvement in year-on-year performance.
The Group's Profit Before Tax (PBT) stood at KES 517Mn, a 16.3% increase from KES 445Mn in the corresponding period of 2018.
According to Peter Mwangi, UAP Old Mutual Group CEO, the Group's good performance can be attributed to a steady growth in Net Earned Premium, coupled with robust savings in operating expenses, which declined by 8% year-on-year.
Mr. Mwangi attributed the cost reduction to payroll savings realized after the reorganization exercise in H1 2018 and concerted efforts to manage expenses Groupwide.
However, the claims experience increased due to the operating environment, particularly for the Medical business, and additional boosts to reserves in the Life Business because of growth.
Investment Income declined by 7.7% mainly due to the impact of property valuation write-downs.
Despite the NSE 20 Index on the Nairobi Securities Exchange having negative returns for the period, the investment portfolio fared relatively well, with the only adverse impact from the property portfolio.
As a result, the Group's Profit After Tax (PAT) rose from KES 190Mn in H12018 to KES 383Mn in H12019, marking a 101.5% growth.
Mr. Mwangi emphasized the Group's continued execution of its strategy, with investments in people and technology to meet stakeholder expectations, particularly those of customers.
