, NAIROBI Kenya, Apr 29 -UAP Group has recorded a Sh1.75 billion pre-tax profit buoyed by enhanced business performance, regional diversification and successful turn-around of the group’s long-term insurance business.
The firm’s financial statement released on Monday shows that revenues grew by 25 percent to Sh9.06 billion while total assets grew by 69 percent to Sh24.5 billion.
Total comprehensive income shot up to Sh2.1 billion supported by strong performance in investments.
Announcing the results, UAP Group Managing Director Dominic Kiarie said new business growth along with investment gains propelled the group’s excellent performance.
“Our 2012 results are a significant improvement over 2011 on all key measures, with excellent growth in profitability, driven by strong growth in gross written premiums, investment income, and a material uplift in new business growth,” said Kiarie.
“Premiums have continued to grow due to growth in new business in existing and new geographical markets, diversification of existing and new products range and enhanced business across all our distribution channels. Coupled with enhanced customer service including strong track record of claim settlements in our insurance business, new business has been strong.”
Shareholders will enjoy a 55 percent jump in returns, as dividends per share rose by 38 percent from Sh1.70 in 2011 to Sh2.35 in 2012, while earnings per share grew by 34 percent from Sh7.35 in 2011 to Sh9.83 in 2012.
“The Group is reaping benefits from its diversification strategy that has seen us grow from a pure play general insurance underwriter to a Financial Services Group with strong regional presence,” Kiarie said.
“The Group’s property development in Kampala, Uganda, UAP Nakawa Business Park, which is a grade A prime commercial development, contributed Sh430 million to the Group’s income.”
The group’s Total Assets increased by 70 percent to Sh24.6 billion driven by funds raised in 2012 from Private Equity Investors and the Public Offer of UAP Shares, and funds generated from the core business.
Total liabilities increased by 32 percent mainly as a result of growth in insurance contract liabilities in line with the growth of the insurance underwriting business.
The Group’s Shareholders funds increased bySh6.2 billion due to the positive business performance and also the injection of Sh5 billion from the capital raising activities carried out by the Group in 2012. The Group posted a total return on shareholders funds of 49 percent.
“The decision to raise capital to support UAP’s pan-African expansion has begun to yield positive benefits. The capital raised has strengthened the Group’s balance sheet, while laying an even stronger foundation for a strong and sustainable growth of the Group’s business going forward,” the Managing Director added.
The Group’s comprehensive income grew to Sh2.1 billion, an increase of over 809 percent, driven the strong business growth and recovery of the stock markets, coupled with a well thought out strategy on diversification of the investment portfolio across key stable asset classes including properties and fixed income investments.