NIC Holdings Limited (NIC) reported a 132.81% growth in half year after-tax profits to Shs4.44 billion ($1.31 million) compared to Shs1.91 billion in the first half of 2015, unaudited results released on Monday show.
After-tax operating income rose 128.58% to Shs4.36 billion ($1.28 billion), or Shs3.08 per share, compared to Shs1.91 billion, or Shs1.35 per share, in the same period last year.
The insurers profitability and income were boosted by a 47.12% increase in gross premiums to Shs5.99 billion from Shs4.07 billion in the same period last year. The growth in gross premiums is due to measures put in place to improve service delivery starting to yield “desired results,” the company said. Unearned income from last year also helped improve returns, NIC said.
The company, which is listed on the Uganda Securities Exchange, said it was upgrading its information technology software to improve its operations in its 2015 half year financials.
Shareholders equity rose 13.06% to Shs37.8 billion in the six months to 30 June from Shs33.43 billion at the end of last year. Total assets, on the other hand, fell 2.13% in the period to Shs91.99 billion from Shs93.99 billion at the end of last year.
NIC said that with its outlook showing consistent profitability, it will embark on restructuring its business processes and improving its IT infrastructure. It will also “invest massively in staff training and technology to increase capacity and support efficient service delivery” as it turns its focus to “new business areas.”
“The Company also hopes to launch complementary general business products in the coming period focusing on the grassroots in support of the drive for financial inclusion and insurance penetration whilst retaining the competitive advantage as the most widely spread insurance company in Uganda,” the results said.
NIC’s stock price remained unchanged at Shs11 at the Uganda Securities Exchange where it has a market capitalisation of Shs15.57bn.
The company’s board of directors did not recommend payment of an interim dividend.
