NAIROBI, Kenya, Mar 14 – UAP Holdings has posted a 45.6 percent increase in their 2017 net profit to hit Sh1.2 billion attributable to growth in investment income.
Chief Executive Peter Mwangi says stable returns from fixed income and an increase in rental income from the firm’s properties contributed to a 27. 9 percent increase in investment income.
The firms’ net earned premium, however, remained flat compared to same period 2017 at Sh15.4 billion while net claims went down by 4.5 percent to Sh9.3 billion
“The combination of improved underwriting and solid investment returns culminated in a substantial increase in our profits, we are glad that our financial performance continues to improve as the benefits of the 2015 acquisition by Old Mutual PLC,” Mwangi said in an investors briefing on Wednesday.
Old Mutual took a 60.7 percent stake in UAP for $253 million in January 2015, just two months after it bought a 67 percent stake in microfinance lender Faulu Kenya for Ksh3.6 billion ($40 million).
The board of directors has proposed a dividend of Sh1.7 per share.
“The business outlook for 2018 is optimistic contingent on good weather, supporting agricultural production and a stable political environment. We look forward to the continued realization of the merger benefits creating a strong integrated financial services business and bolstering our returns to shareholders,” he noted.