AAR Insurance reported a net profit of Ksh517 million for FY2019 compared to Ksh253 loss recorded in 2018. The financial report also reveals that profit before tax rose to Ksh 756 million from a loss of Ksh334 million in the previous financial year.
The insurer attributes the improved performance on a significant reduction in claims ratio with net claims falling to Ksh1.7 billion last year from Ksh3.3 billion claimed in 2018.
In addition, the insurer recorded growth in revenues with gross written premium increasing by 4.5% from Ksh5.6 billion to Ksh 5.9 billion. Commissions earned from new reinsurance arrangements pushed the income from fees and commission from Ksh32 million to ksh 586 million in 2019.
AAR Insurance reported savings on management expenses that led to a decline in operating expenses from Ksh 1.1 billion to Ksh 1.08 billion. savings on management expenses, and efficient claims management.
Total assets rose 24% from Ksh 3.9 billion to Ksh 4.8 billion, with shareholders’ funds increasing from Ksh 563 million to Ksh 1.1 billion in FY2019.
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