UAP has reported a Sh57 million loss in the first six months of the year, media reports said. The insurance firm reported a profit of Sh 517million in the same period last year. Its poor performance was due to slowdown in activities in the equities market.
Group CEO, Arthur Oginga, told the media, “We continue to drive our profitable growth agenda ensuring that business is transparently and appropriately priced for the risk underwritten, including rewarding good risk. We continue to execute on our integrated financial services strategy supported by digital with a keen focus on profitable growth. Our business is resilient with a strong balance sheet and improved cash generation. This will position us well to navigate the headwinds that the COVID-19 pandemic shall present in the second half of the year. We remain cautious given that the pandemic is still unfolding and have put in place measures to ensure our customers continue to receive services seamlessly.”
It is reported that the insurance company recorded a double digital increase in gross written premiums at 11 percent. This was largely driven by core short-term insurance businesses. The company’s operating expenses increased by 13 percent. That said, UAP’s net earned premiums were up 1.4 percent in line with gross earned premiums which went up 2 percent, media reports said.