Financial services provider UAP Old Mutual Group has reported a 27 per cent increase in half year total income on the back of improved growth in written premiums and investment income.
The Group’s total income for the first six months of the year stood at Sh8.79 billion from Sh 6.19 billion, a 27 per cent increase from a similar period in 2015.
“We registered strong performance for both our general and life insurance businesses, both of which increased by double-digit growth rates. Additionally our investment strategy is beginning to bear fruit,” said UAP Old Mutual Group Chief executive Peter Mwangi.
Improved performance continued to trickle down to the bottom line with the Group reporting a decline in net losses for the first half of the year which stood at Sh 143 million, a 68 per cent drop from Sh449 million that was posted in a similar period last year.
The Group recorded a 20 per cent growth in Gross Written Premium and a 23 per cent growth in Net Earned Premiums. Our short term insurance grew by 19 per cent and the long term insurance grew by 21 per cent.
The Group’s investment strategy has yielded positive results leading to a 74 per cent increase in investment income. Consequently the Group’s total income grew by 27 per cent.
Our net claims grew by 26 per cent line with change in actuarial reserving methodology for our long term business. Our short term business claims ratio remained stable at 63 per cent compared to 62 per cent in 2015 reflecting stringent and prudent underwriting practices.
The company further anticipates the similar trend to continue buoyed by the Group’s plans to reap from investments made as well as gains made from premiums written in the first half of the year.
The Group further expects improved performance as the benefits of the merged business begin to be felt.
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