UAP Old Mutual has reported a 61 per cent drop in net earnings to Ksh 190 million for the 6 month period ended June 2018.
The company’s CEO Peter Mwangi said the decline in profit was mainly as a result of a challenging operating conditions in South Sudan and Tanzania.
The firms’s Gross written premiums fell slightly by 2.5% to Sh 9.7 billion as net earned premiums remained flat at sh 9.9 billion. Life business grew by 14% while Investment income grew by 11% on the back of increased investment in government paper and in real estate.
“Other reasons for the decrease in revenue include economic contraction in South Sudan and a more challenging operating environment in Tanzania. However, our Life business grew 14.1% for the period. Our investment income increased by 11.0% − despite the deterioration in Kenyan equities performance − attributable to an uplift from fixed income and rental income from our investment properties.” the company noted.
“We conducted a reorganization exercise in H1 2018. The exercise cost KES 335.1Mn and we expect to realise substantial savings in expenses going forward.”