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.
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