Insurance firm, UAP Group has recorded a 61.6 percent drop in net profit for first half 2018, financial results forwarded to Nairobi Securities Exchange (NSE) today morning show.
Profit after tax for the period declined to Sh190. 9 million from Sh496.8 million for a similar period last year.
The profit slide was driven by a decline in gross written premiums, a commentary from the firm said.
“The Group registered a 2.5 percent decline in Gross Written Premium (GWP) with Net Earned Premium (NEP) growing marginally by 0.3 percent. A key plank of our strategy is profitable growth thus we undertook actions to selectively acquire accounts so as not to jeopardise our underwriting performance. Other reasons for the decrease in revenue include economic contraction in South Sudan and a more challenging operating environment in Tanzania,” the firm said.
The group’s Life business grew 14.1 percent for the period while investment income expanded by 11.0 percent on account of better returns from fixed income and rental income from group property investments