UAP Insurance records a 24pc growth in revenue

NAIROBI, Kenya, April 4 -UAP Insurance Kenya recorded a growth in Gross Written Premium of 24 percent from Shs 10.61 billion in 2020 to Shs 13.18 billion in 2021, while the net earned premiums increased by 13 percent.

Net claims incurred increased by 20 percent in line with business growth, and the claims ratio worsened from 65 percent in 2020 to 69 percent in 2021.

The increase in claims incurred was largely attributable to a spike in motor and medical claims driven by factors such as increased cost of spare parts which are largely imported, an increase in hospital visits driven by three covid waves, and, a notable increase in claim count in both motor and medical. Covid claims contributed four percentage points to our overall medical claims ratio.

The Company recorded an Shs 543Mn profit before tax compared to Shs720Mn from the prior year which was a decrease of 25 percent.

This was mainly driven by property revaluation loss of Shs. 600million in 2021.

The loss was triggered by an expiring lease contract in April 2022 and a downward renegotiation of rent to align with the properties market rate thus reducing the expected cashflows per square feet.

“Our strong performance and growth in market share is attributed to the implementation of our strategy anchored on Transformational Growth and Superior Customer Experience. In addition, we implemented prudent risk selection, innovation in the claims value chain, and cost control which are key strategic initiatives geared towards enabling us to achieve these great results” said David Kuria, Managing Director, UAP Insurance Kenya.