Mayfair Insurance posts Sh359m profit

Companies

Mayfair Insurance posts Sh359m profit

Thursday, April 23, 2020 22:00

By PATRICK ALUSHULA

Mayfair Insurance has posted Sh359.5 million net profit for the year ended December 2019, relatively flat compared with Sh361.8 million registered a year earlier.

Total income grew by 18 percent to Sh2.4 billion, lifted by higher written premiums and commissions earned.

However, expenses rose by 22.8 percent to Sh1.95 billion, slowing down the bottom-line in the year the net claims and policyholders’ benefits rose from Sh717.8 million to Sh941 million.

Expense ratio, a percentage of premium used to pay all the costs of acquiring, writing and servicing insurance and reinsurance rose from 29 to 34 percent. Mayfair’s total profit and comprehensive income rose to Sh380.5 million from Sh367.8 million supported by a rise in valuation of stock market investments.

Fair value gains on equity investment more than tripled to Sh17.3 million during the period.

The management said performance was strong both in Kenya and the region, helping keep the bottom line stable.

“In line with our vision to be recognised and distinguished as a reliable and innovative Pan African financial services leader, we have increased our footprint to the Democratic Republic of Congo,” said Vishal Patel, the company’s chairman.

Mayfair Insurance already operates in Kenya, Zambia, Rwanda, Uganda and Tanzania.