Kampala, Uganda | ISAAC KHISA | UAP Old Mutual insurance company has seen its net profit nearly double from Shs 9.7billion in 2020 to Shs 17.2billion last year driven by increase in gross written premiums, better claims and expense management.
The insurer, which owns 45% of UAP Old Mutual Properties Uganda Limited and 32.3% UAP Old Mutual Financial Services Limited, saw income increase by 25% to Shs 107billion due to increase in gross written premiums during the same period under review.
However, the COVID-19 pandemic impacted the property values and rental income earned from the business but management says they are optimistic of the future owed to the conclusion of the final investment decision on oil and gas.
Stephen Chikovore, the managing director at UAP old Mutual insurance said the insurer’s gross written premiums increased by 12% as compared to 2020, with a growth of 4% in general insurance and 20% in the medical business.
“Prioritizing customer experience has been key to attaining this growth, especially on the new business unlocked through the medical line of business while also maintaining key renewals on the pure general insurance business,” he said.
“To further improve on the customer experience, we are also strongly driving the digital transformation agenda to offer our customers a more superior, quick, and seamless experience in accessing our services.”
Meanwhile, Trans Africa Assurance saw its net profits increase from Shs 512million to Shs 1.05billion citing increase in income. Alliance General Insurance, too, recorded an increased in profits from Shs 401million in 2020 to Shs 582million in 2021 and so is Mayfair insurance that recorded an improvement in profit from a loss of Shs 800million to Shs a profit of Shs 105million during the same period under review.
However, CIC insurance fell into red, from a net profit of Shs 1.6billion in 2020 to a loss of Shs 69million last year citing a drop in income and increase in claim’s payments.
Jubilee Allianz general insurance saw its net profit decline from Shs 19.8billion to Shs 13.9billion during the period due to increase in claims payments occasioned by coronavirus pandemic and the transfer of the medical portfolio and the associated costs to anew entity Jubilee Health insurance.