The Loss that came after a decade of good business

“Performance was impacted by a tough operating environment in Kenya and the wider region .We have had to let go of accounts we couldn’t price properly and that has had an impact on the topline,” said Mr Mwangi in a press statement.

UAP becomes the third insurer on the Nairobi Securities Exchange (NSE) to post a loss. UAP Holdings Limited has posted Sh518 million loss, the first in about a decade, joining the group of insurers whose earnings have come under pressure.

The loss for the financial year ended December 2018 is a 166 percent decline in performance from the Sh608 million profit that was reported in the previous financial year. Group CEO Peter Mwangi said the business experienced challenging conditions last year.

Against the UAP performance, investors will not receive any dividend unlike last year when the board declared Sh1.70 per share amounting to Sh359 million. The combination of increased claims and reduced investment returns also affected the returns. Gross written premium reduced by 1.8 per cent to Sh18.7 billion as the firm dropped non-performing accounts.