FEATURED STORY

UAP plunges in the red with Sh518 million loss

Share
UAP
UAP Holdings have sank into a Ksh518 million loss. Photo: businessdailyafrica
Share

Difficult operating environment in the East African region saw UAP Holdings Ltd slumped into a Ksh518 million loss for the financial year ended December 31, 2018.

The insurer that is listed on the Nairobi Securities Exchange (NSE) said that business performance deteriorated on the region’s harsh operating environment, as well as stock exchange related issues together with increased competition in South Sudan.

UAP’s board said, “The combination of a bearish performance on the Nairobi Securities Exchange, the contracting economy in South Sudan, increased competition and once-off restructuring costs led to declined
profitability for the business in 2018.”

The group’s board, chaired by Dr. JB Wangui, recommended no dividend payout to shareholders for the year ended December 2018.

With chief executive Peter Mwangi at the helm, the group saw total assets rise to Ksh58.6 billion by the end of 2018, up from Ksh58.1 billion. The net assets, once total liabilities are factored in, drop to Ksh17.1 billion having settled at Ksh18.3 billion

The insurer however reclined to a net earned premium of Ksh15.5 billion. This represented a marginal rise over a three year period that has seen bumps and valleys.

Present in Kenya, Uganda, South Sudan, Rwanda and Tanzania, the listed firm saw total income fall  to Ksh18.6 billion, having posted Ksh20 billion in a similar period of review last year.

“Gross Written Premium (GWP) reduced slightly by 1.8% to KES 18,770Mn. This is largely driven by a more challenging operating environment in Tanzania and a slower than expected pace of economic recovery in
Kenya,” the firm said.

[See Also: How much cash should you save?]

Written by
Mike Njoroge -

Mike Njoroge is the founder of Daystar Oracle and FootballTriangle. He is passionate about news, religion and sports. He can be reached at: [email protected]

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Follow Us

Related Articles
The Origins of Commercial Banking in Kenya
ECONOMYFEATURED STORY

The Origins of Commercial Banking in Kenya

Kenya is rich in type, number and sophistication of financial institutions. The...

What to Know about President Ruto’s Planned Nationwide Livestock Vaccination Programme
FEATURED STORYNEWS

What to Know about President Ruto’s Planned Nationwide Livestock Vaccination Programme

The nationwide livestock vaccination programme “against diseases,” planned for January next year,...

2024 SkyTeam Aviation Challenge
FEATURED STORY

Kenya Airways Shortlisted for 2024 SkyTeam Aviation Challenge

Kenya Airways (KQ) is the only African airline that has been shortlisted...

Affordable Housing Project
FEATURED STORY

Govt Puts Up For Sale 4,888 Affordable Housing Units: Here’s The Full List And How To Buy

The government has put up for sale 4,888 affordable housing units across...