UAP Insurance gross written premiums surged by 24 percent to Ksh.13.18 billion for the full year ended December 31, 2021, compared to Ksh.10.61 billion the underwriter earned same period in 2020.
Net claims incurred rose by 20 percent in contrast with the growth of the business, while the claims ratio worsened by 65 percent in 2020 from 69 percent in 2021.
Revenue record has been attributed to the spike in motor and vehicle claims. COVID-19 claims contributed to four percentage points to the overall medical claims.
“Our strong performance and growth in market share is attributed to the implementation of our strategy anchored on transformational growth and superior customer experience .In addition we implemented prudent risk selection ,innovation in the claims value chain,and cost control which are key strategic initiatives geared towards enabling us to achieve these great results,” said David Kuria Managing Director, UAP Insurance Kenya.
The firm recorded Ksh.543 million profit before tax compared to Ksh.720 million earned in 2020 having tumbled by 25 percent as a result of a property revolution loss of Ksh.600 million in 2021.
The expiration of the lease contract in 2022 contributed to the loss and a downward renegotiation of rent to align with the properties market rate hence reducing the expected cashflows per square feet.