This archive report was first published on 7 May 2020.
UAP Holdings has reported a significant loss after tax for 2019, widening to Sh3.4 billion from Sh518 million in the previous year.
Group Chief Executive Arthur Oginga attributed the sharp drop in profitability to a depressed property market and a tough operating environment in South Sudan.
"The decline was mainly driven by one-off fair value write-downs on the Group’s investment property portfolio due to the softening of the markets in Kenya and Uganda and prevailing operating environment challenges in South Sudan," Oginga said.
Excluding the property business performance, the profit before tax for 2019 rose by 48.7 per cent to Sh1.7 billion, up from Sh847 million recorded in 2018.
The general insurance business posted a profit before tax of Sh2.3 billion, a 133 per cent improvement from 2018.
Net earned premiums increased by 3.8 per cent in 2019, while investment income fell by 78.3 per cent due to property valuation write-downs.
"We welcome and support the interventions to contain the pandemic and stimulate the economy," Oginga assured investors.
