UAP Holdings’ pre-tax profit for the year through December 2014 went up by 4% riding on increased earnings from the company’s subsidiaries in region.
The 4% growth translates to Kshs2.3 billion, up from Kshs2.2 billion recorded over a similar period in 2013. UAP Group MD Mr Dominic Kiarie attributed the improvement to the growth in all its subsidiaries, with life and general insurance expanding by 57% and 11% respectively.
“Our long-term business grew at a faster rate of 57%, compared with our short-term business which grew at 11%. The faster growth in the long-term business is in line with our strategy to diversify our earnings from general insurance,” said Mr Kiarie.
Total income increased by 31% to Ksh16.7 billion, attributed to strong performances by the group’s property, and insurance business. The contribution by regional businesses total income increased from 28% to 34%. The group’s investment income grew by 61% to Kshs4.6 billion, following increased income from all its classes of investments.
“The Group is now reaping the benefits of setting up an internal investment management business which has improved our ability to take advantage of investment deployment opportunities in the markets that we operate in,” added Kiarie.
The group’s property business grew by 105% to Kshs1 billion following the completion of some of UAP’s projects in Uganda and South Sudan. In terms of claims and policyholder benefits payable grew by 40% to Kshs8.1 billion, while expenses recorded an increment of 34%, due to significant investment in creation of capacity at the holdings level and for growth of the company’s subsidiaries in Rwanda and Tanzania.
UAP holding’s assets grew by 27% to Kshs42 billion. Following the profits realized, the directors of the company have recommended a first and final dividend of Kshs1.70 per share. UAP’s key achievements over the 12 months period include turnaround of its Tanzanian subsidiary to profitability, launch of the group’s Graduate Development Programme, and launch of unit trust products by UAP Investments.
In the subsequent financial year, the group expects its property business to significantly contribute to its bottom-line with the expected completion of large scale projects in Kenya (UAP Tower) and South Sudan (UAP- Equatorial Tower) this year.
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