Insurance firm’s profits drop

I&M Bank building along Kenyatta Avenue, Nairobi. I&M Holdings commenced trading on Tuesday at Sh93 per share, marking the conclusion of a reverse take-over of investment firm City Trust by the banking entity. FILE  Nation Media Group

By DAVID HERBLING
 

 

In Summary

APA Insurance owns 15.18 million shares or 2.61 per cent of CMC Holdings valued at Sh205 million based on the counter’s last trading price of Sh13.50 each.

Monitor correspondent
NAIROBI.

APA Insurance has reported a 28 per cent dip in net profit in the year to December 2012, following increased commission pay-out and lower valuation of its stake at CMC Holdings which remains suspended from trading.

The general underwriter reported an after-tax profit of Ksh205 million last year compared to Sh285 million in 2011.

Its books of accounts show an exceptional provision of Ksh229.8 million for the reduction of its holding in troubled auto-dealer CMC Holdings which was suspended from the Nairobi Securities Exchange trading in September 2011.

“This was after providing for an exceptional provision of Ksh229.8 million,” the firm said. Claims and benefits paid out increased by nine per cent to Ksh3.6 billion.