Growth driven by business efficiency and tighter lid on costs.
Nairobi, 12th April 2016... Kenya's second largest medical underwriter AAR Insurance has today announced 84 percent increase in profits boosted by growth in revenue, cost containment and enhanced quality of its underwriting business.
Profit after tax rose to Ksh.285 million in 2015 compared to Ksh.149 million the previous year. Similarly, profit before tax increased by 84 percent from Ksh.223 million in 2014 to Ksh.410 million in 2015.
The insurer, which commands 15.74 percent market share in the medical underwriting segment, also saw its gross written premium, a measure of revenue, record growth of 84% from Ksh.3.6 billion in 2014 to Ksh.4.4 billion last year.
AAR Insurance Managing Director Caroline Munene attributed the strong performance to higher sales coupled with enhanced operational efficiency.
"Our aggressive sales drive across the country has paid off. The increase in gross premium is the result of increase in sales following improved customer service and internal efficiency.
The impressive performance in 2015 is also attributable to the positive impact of the improved operational processes across the business."
The company's total assets increased from Ksh.2.7 billion in 2014 to Ksh.3.1 billion last year.
Ms. Munene exuded confidence in the company's future growth prospects citing the relatively low insurance penetration levels in the country. "We see some headroom for further growth in the large uninsured market through rollout of products that are both affordable and aligned with customer needs," she said.
The medical insurer is also keen on expanding its product portfolio and enhancing customer relationships. "We are committed to further diversifying our product offering to focus on solutions that put our clients in control. We will continue to focus on efficient service delivery as a way of fostering excellent customer service to all our clients."
The company recently introduced a new web-based IT system aimed at curbing fraud, a major headache for the insurance industry. For instance, in the third quarter of 2015, the Insurance Regulatory Authority reported fraud cases amounting to Ksh.29 million.
Dubbed eOxegen, the AAR system reduces the risk of data manipulation via a stringent vetting mechanism and less manual interventions in handling customer transactions.
The firm also unveiled a wellness campaign last year aimed at encouraging clients to embrace a healthy lifestyle as a way of reducing the high cost of treating lifestyle diseases like diabetes, hypertension, stroke, cancer and heart diseases.