, NAIROBI, Kenya, Mar 4 – Pan Africa Insurance Holdings Limited has announced a 108 percent rise in its net profit for the full year 2013 to Sh1.25 billion from Sh600 million in the previous year.
Profitability for the insurer was driven by investment income and fair value gains, up 23.3 percent to Sh1.5 billion and 32.8 percent to Sh1.2 billion respectively.
“Our two insurance lines, individual life and corporate business continue to be profitable with good prospects for further growth. Investment income on shareholders’ assets grew significantly as a result of unrealised earnings mainly from an unlisted investment,” CEO Tom Gitogo said.
Shareholders will take home a final dividend of Sh4.5 per share up from Sh3 in 2012. The dividend payment date will be on June 2, 2014 with books closure being on May 16.
Operating surplus grew 12.1 percent to Sh808 million as a result of good returns from endowment products and interest on policy loans.
The sale of plots in the high-end Runda estate also provided good returns for the company.
The groups embedded value is at Sh55.21, which is 39.4 percent of the current share price, reflecting a generous premium that the stock is trading at in the bourse.
On the life business, profitability jumped 29 percent to Sh422million while gross premiums reduced 2.1 percent to Sh5.3 billion as a result of fewer bulk annuities.
“During the year, we launched Bima Mkononi which is a life product covering death and disability to be distributed through mobile telephony. The product targets the informal sector that is poorly covered by other insurance products,” Gitogo noted.
However, the group’s total operating expenses increased by 12 percent in the year under review from Sh856 million to Sh960 million.
“In 2014, the group plans to concentrate on efficiency and cost containment,” the CEO said.