Pan-African
Financial Services Group, UAP Holdings, has announced record profits for the
year ended 31 December 2012.
The
Group’s Profit before Tax rose to Kshs 1.75 billion in 2012, up 44% from a
profit of Kshs 1.21 billion recorded in 2011, while the Earnings Per Share
increased by 34% from Kshs 7.35 per share in 2011 to Kshs 9.83 per share in
2012.
This
remarkable growth has been supported by growth of UAP businesses across the
region due to the Group’s continued focus on streamlining its core businesses,
product innovation and geographical expansion. During the year, the Group
completed its entry into the Rwanda and Democratic Republic of Congo (DRC)
markets. As announced earlier, the Group is in the final stages of entry into
the Tanzania market.
Announcing
the results, UAP Group Managing Director Dominic Kiarie said new business
growth along with investment gains propelled the group’s excellent
performance.
“Our
2012 results are a significant improvement over 2011 on all key measures, with
excellent growth in profitability, driven by
strong growth in gross written premiums, investment income, and a
material uplift in new business growth. Premiums have continued to grow due to
growth in new business in existing and new geographical markets,
diversification of existing and new products range and enhanced business across all our
distribution channels. Coupled with enhanced customer service including strong
track record of claim settlements in our insurance business, new business has
been strong.”
The
Group’s comprehensive income grew to Kshs 2.1 billion, an increase of over
809%, driven the strong business growth and recovery of the stock markets,
coupled with a well thought out strategy on diversification of the investment
portfolio across key stable asset classes including properties and fixed income
investments.
“The
Group is reaping benefits from its diversification strategy that has seen us
grow from a pure play general insurance underwriter to a Financial Services Group
with strong regional presence,” said Mr. Kiarie. “The Group’s property development in Kampala,
Uganda, UAP Nakawa Business Park, which
is a grade A prime commercial
development, contributed Kshs 430 million to the Group’s income.”
The
Group’s real estate development portfolio, with 3 landmark developments in
Kenya, Uganda and South Sudan, is expected to continue contributing positively
to the diversification of its investment portfolio and enhance the investment
income.
“These
initiatives will ensure the diversification of the Group across key
geographical markets and in its investment portfolio, and therefore deliver
sustained and strong growth in earnings,” he said.
Stronger
Balance Sheet
Group’s
Total Assets increased by 70% to Kshs 24.6 billion driven by funds raised in
2012 from Private Equity Investors and the Public Offer of UAP Shares, and
funds generated from the core business. Total liabilities increased by 32%
mainly as a result of growth in insurance contract liabilities in line with the
growth of the insurance underwriting business. The Group’s Shareholders funds
increased by Kshs 6.2 billion due to the positive business performance and also
the injection of Kshs 5 billion from the capital raising activities carried out
by the Group in 2012. The Group posted a total return on shareholders funds of
49%.
“The
decision to raise capital to support UAP’s pan-African expansion has began to
yield positive benefits. The capital raised has strengthened the Group’s
balance sheet, while laying an even stronger foundation for a strong and
sustainable growth of the Group’s business going forward,” he added.
