UAP Group, posted strong financial performance in 2013 driven by profitable growth of its core insurance business and execution of its regional diversification strategy.
Speaking during a press briefing, on 31 March 2014, Dominic Kiarie UAP Group Managing Director, said that the impressive results and ongoing performance improvement demonstrated that the Group’s strategy of enhancing performance of its businesses and growth into new markets is continuing to bear positive results.
Key Performance Highlights:
• Gross Insurance Premium revenue grew by 41% to KeS 12.7bn
• Life Insurance business grew by 55% to Kes 1.4bn
• General Insurance business grew by 39%
• Investment income grew by 10%
• Total income increased by 35% to 12.7bn
• Property business revenues grew by 30%
• Expense growth contained at 21%
• Profit before tax increased by 27% to KeS 2.2bn
• Dividend payment up 13% from KeS 317mn to KeS 359mn
Gross insurance premium revenue grew by 41% to KeS 12.7bn as a result of significant investment in customer experience, product innovation and expanded distribution across the region. General Insurance business grew by 39% and Life Insurance business had a 55% growth to Kes 1.4bn. Investment income grew by 10% on the back of execution of a robust investment strategy.
Total income increased by 35% to 12.7bn due to strong performance by the insurance and property businesses. Property business revenues grew by 30% following the completion of UAP Nakawa Business Park in Kampala, Uganda.
Profit before tax increased by 27% to KeS 2.2bn.
“This is the highest profit ever reported by UAP, which evidences that our growth and diversification strategy is bearing results. Consequently, the Board will recommend to shareholders the payment of a first and final dividend of KeS 1.70 per share from KeS 1.50 paid in 2012,″ he added.
The regional business demonstrated marked improvement with a strong performance of 27% income growth year-on-year from KeS 2.5bn in December 2012 to KeS 3.5bn in December 2013, thus contributing 28% of the Group’s revenues. “We expanded our geographical coverage from 5 to 6 countries through the acquisition of a 60% stake in Century Insurance Tanzania Ltd and the business has since been rebranded to UAP Insurance Tanzania Ltd” said the Group Managing Director.
UAP invested significantly in talent management for both Group and operating subsidiaries. In 2013, the Group launched a regional Graduate Development Program to provide a pipeline of future UAP business leaders. Other initiatives included strengthening of control processes and governance functions across the Group and expansion of the Group’s board to 12 members from the previous 7, to bring in additional skills and to support business growth and expansion.
UAP also enhanced its business distribution networks to improve convenience to its customers and also launched the UAP Information Centre. In our dedicated community outreach, UAP sponsored Ndakaini Marathon for the 10th year running to support UAPs conservation agenda.
The strategy going forward in 2014 is to leverage on technology driven products and services to enhance customer experience. We see significant opportunities in the markets UAP operates in, and have invested in highly experienced management teams to enable UAP businesses design customer solutions that take advantage of these opportunities.
Key aspects of our strategy include: Continuously improving the efficiency of processes to enhance customer experience. This will be achieved through technology investments and business process simplification. Continuous investment in future UAP leaders through the GDP, MDP and LDP programs and completion of property projects across the various markets where we operate.
“Despite a challenging business environment, the Group has achieved strong growth in revenues and profitability. We look forward to offering our current and future customers innovative products and services that will deliver peace of mind and financial freedom,” concludes Kiarie.
For more information log on – http://www.uap-group.com
To download the 2013 annual review report – click here