UAP-Old Mutual Posts Sh 518 million loss

Financial services provider UAP-Old Mutual Group has recorded a massive decline in earnings from a net profit of KSh 608 million to half a billion loss. The company, with subsidiaries in Tanzania, South Sudan, Rwanda, and Uganda blamed the bear market, increased competition, restructuring expenses and a tough economic environment.

Gross premiums revenues went down from KSh19.7 billion to KSh18.6 billion, a 5 percent decline.  Most of the revenue came from the Kenyan and Ugandan segments. The insurer incurred a 780 million loss on the impairment of financial assets.  Additionally, UAP incurred KSh342 million in reorganization expenses. The company’s claims payables went up by 10 percent to KSh10.4 billion.

Investments in technology and efficient use of resources led to an 11 percent decline in operating expenses.  

The firm’s financial position slightly improved with assets increasing by 1per cent to reach at KSh58.7 billion on the back of an 18 percent growth in government securities. Similarly, liabilities increased from KSh39.8 billion to KSh41.5 billion mainly due to an increase in insurance and investment contract liabilities.

UAP restated its 2017 pretax earnings from KSh1.96 billion to KSh1.3 billion due to a revision in the value of its investment property in Kenya.

The directors of the company did not recommend a dividend payment for the financial year 2018.