UAP Insurance Kenya recorded a Kshs 1.249Bn profit before tax compared to Kshs 299Mn from the prior year. This was a 316% increase compared to prior year.
“This good performance is attributed to our strategic focus on profitable growth and providing superior customer experiences through digitization of our solutions and enhancing our discipline in operation excellence. In addition, we implemented prudent risk selection, innovation in claims value chain and cost control which are key strategic initiatives geared towards enabling us to achieve these great results” said David Kuria, Managing Director, UAP Insurance Kenya.
The gross written premiums profitably grew by 1% from Kshs 9.25Bn in 2018 to Kshs 9.37Bn in 2019, while the net earned premiums increased by 2%. Despite the net claims payables marginally increasing by 3% in line with business growth, the claims ratio improved from 69% in prior year to 68% in 2019. This was driven by the Company’s focus on profitable business growth as well as claims cost management initiatives undertaken.
The high profitability was also boosted by good investment income returns. Yields on government securities remained relatively stable in the year which was mainly due to the attractive bond returns and the risk-free nature of government securities. Equities also recorded a good performance following a recovery from one of the worst performances in 2018.
“UAP Insurance Company has continued to post improved performance resulting in a strong balance sheet with a total asset base of Kshs 16 billion &; total equity of Kshs 7 billion.
UAP Insurance Kenya is positioned 3 rd in the Industry commanding a market share of 7.1% based on the IRA full year 2019 industry report” remarked Mr. Kuria.
