Core business activities drive 27% growth in profitability for MUA

MUA Ltd (MUA) on the 15th November its financial results for the period ended 30 September 2019.

Some of the key highlights include:
• Gross premium earned increased by 3% to Rs 3,325m
• Profit after Tax increased by 27% to Rs 267m
• Earnings per Share up 27% to Rs 5.10
• Solvency Ratio of 200% – an improvement of 3 basis points from 197% (as at 30 June 2019)
• Market capitalisation up 24% to Rs 3.8bn, compared to September 2018

“MUA closed another strong quarter with profit after tax increasing for the sixth consecutive period, supported by the Life operations and a return to profitability for the East African subsidiaries. Improvements across earnings, profitability and solvency are testament to MUA’s focus on sustainable and stable performance”, commented MUA Group CEO, Bertrand Casteres.

“Strong premium momentum and disciplined underwriting has supported our profitability and will continue to do so. Notably, Life’s performance was bolstered by an increase of 6% in premiums”. Our position as market leader in motor insurance in Mauritius has been a key contributor to profit growth within the general insurance segment with growth in renewal and new business premiums. Success in this segment has been illustrated by the improvement in the combined ratio and a growth of 3% in gross premium earned.

MUA’s East African operations benefited from an increase in gross premiums of 7%, with profit after tax increasing by 44%. This was driven mainly by a turnaround of our Kenyan subsidiary, which posted a commendable improvement in their profits compared to 2018.

Moreover, MUA Ltd raised Rs 500m worth of floating rate Notes, assigned a rating of CARE MAU AA- Stable (Double A Minus; Outlook: Stable) by CARE Ratings (Africa) Private Limited.

Details of the results for the period ended 30 September 2 019 will be available for download at mua.mu on Friday 15 November 2019.