APA Insurance profit jumps 38 per cent

Apollo Group Chief Executive attributes the rise to strategic interventions by the bank.[PHOTO: DAVID GICHURU/STANDARD]

APA Insurance has announced a 38 per cent growth in its profits before tax for the year ended  December 31, 2014, citing increased incomes from a strong performance of its investments.

The firm’s profit before tax climbed to Sh838 million, up from Sh609 million recorded in a similar period last year, with the Kenyan operations generating about 91 per cent of the profits.

“The group’s positive performance reflects the consistent delivery on our strategy, supported by a robust industry structure that ensures the group operates within clearly defined markets,” stated Apollo Group Chief Executive Ashok Shah.  “This is a testament of our commitment over the long haul in this market and our vision to become the trusted leader in insurance and investments in Kenya and other chosen markets.”

The group’s total comprehensive income surpassed the Sh1 billion mark for the second consecutive year, to stand at Sh1.01 billion. Written premiums grew by 20 per cent to stand at Sh7.8 billion in 2014 up from Sh6.5 billion recorded in the previous year.

The company further settled Sh6 billion worth of claims last year, almost double the Sh3.9 billion in claims settled in 2013.

The company’s board has recommended bonus issue of two shares for every three shares held, which will increase the share capital to Sh1.25 billion, making the company one of the highest capitalised in the sector.