GROWTH

Old Mutual's half-year profit doubles to Sh383 million

The firm took a hit form the ongoing bear run at the Nairobi Securities Exchange (NSE) and the impact of property valuation write-downs that saw Investment Income declined by 7.7 per cent

In Summary

The group’s gross profits grew 16.3 per cent to Sh517 million compared to Sh445 million same period last year

Isaac Nzyoka, UAP Old Mutual Group COO, Peter Mwangi, UAP Old Mutual Group CEO, Nkirote Mworia Njiru, UAP Old Mutual Group Company Secretary and Legal Counsel and Peter Anderson, Group Managing Director, Asset Management look through UAP Old Mutual group half year financial results at their investor briefing held at Sarova Stanley Hotel.
Image: COURTESY

Listed insurer Old Mutual Group yon Monday announced a Sh383 million profit after tax in its 2019 half year results.

This is a 101.5 per cent increase from the Sh190 million  registered during a similar period last year.

We attribute the good performance to a steady growth in Net Earned Premium with robust savings in operating expenses which declined by eight percent,” said UAP Old Mutual Group chief executive officer Peter Mwangi.

The group’s gross profits grew 16.3 per cent to Sh517 million compared to Sh445 million same period last year.

Even so, the firm took a hit from the ongoing bear run at the Nairobi Securities Exchange (NSE) and the impact of property valuation write-downs that saw investment income drop by 7.7 per cent.

The claims increased due to the operating environment particularly for the medical business and additional boosts to reserves in the life business because of growth. The total impact was arise in net claims expense.

Even so, the firm has vowed to record better results in coming periodical reviews

“The execution of our strategy continues apace with continuous investments in our people and technology to ensure that we meet out stakeholder expectations especially that of our customers,’’ Mwangi said.