APA insurance sees profit decline on assets devaluation

Otiato Guguyu 

PS for Agriculture, Livestock and Fisheries Dr Andrew Tuimur and the former ministry's Cabinet Secretary Willy Bett when they received a dummy cheque worth Shs319,191,600 from UAP's Itimu Kiruti and Ashok Shah CEO Apollo Insurance on behalf of other partners at Kilimo headquaters on Wednesday, Aug 24, 2017. [Jonah Onyango, Standard]

APA insurance after-tax profit fell 22.6 per cent to Sh510 million in the year ending December 2018, from Sh659 million in 2017. Although gross written premiums grew last year to Sh9.56 billion from Sh8.30 billion in 2017, the firm’s profit was hit by Sh161 million loss on revaluation of financial assets. The total claims settled by APA Insurance during the year were Sh6.54 billion compared to Sh6.38 billion in 2017. The insurer has declared a Sh600 million dividend to its shareholders. “APA Life Assurance has declared 10.25 to pension contributors which is one of the highest in the industry,” Apollo Group Chief Executive Ashok Shah said. “In 2018 the Group has delivered concrete results against the backdrop of a difficult business environment.  We have achieved a growth in premiums and in solid investment returns when many of our peers have shown losses in both operational and investment returns.”  Insurance peers suffered considerable losses in 2018 following the decline in real estate valuations and performance of investments at the bourse. Investment firm Britam Holdings posted a Sh2.2 billion loss in 2018, down from a profit of Sh527 million in 2017 and blamed the decline on a 10 per cent occupancy of Britam towers and decline in performance at the Nairobi bourse. Kenya Reinsurance blamed lower valuations on their real estate property as occupancy was hit hard. It also experienced decline earnings from its subsidiaries. According to its report, business at ZepRe suffered forex losses in South Sudan to see net profit decline by 36 per cent, from Sh3.5 billion in 2017 to Sh2.2 billion in the 12 months to December last year. Liberty Kenya Holdings saw after-tax earnings decline nine per cent from Sh674 million in 2017 to Sh608 million last year on stunted premium growth in Kenya and Tanzania. Mr Shah said Apollo Group will continue to focus on growing APA Life Assurance and expanding the APA Insurance’s general business in Uganda.