MUA Limited, the Mauritius-based insurance group, reported a 48 percent increase in first-half profit after tax, helped by stronger growth in its home market even as its East African operations faced continued pressure.

Profit after tax rose to Rs369 million ($7.85 million) in the six months ended June 30, from Rs249 million ($5.4 million) a year earlier, according to the group’s unaudited interim consolidated financial statements. Growth in both life and general insurance in Mauritius helped offset weaker results from some of its East African businesses.

Domestic profit jumps 78 percent

Mauritius remained the biggest contributor to earnings. Group insurance revenue increased 5 percent to Rs4.1 billion ($87.3 million), from Rs3.9 billion ($83 million) a year earlier, while the group’s insurance service result rose 18 percent to Rs712 million ($15.2 million) from Rs604 million ($12.9 million).

Total assets increased to Rs26.4 billion ($562.1 million) at June 30, compared with Rs25.77 billion ($550 million) at the end of December. The improvement was particularly strong in MUA’s domestic business. Profit from Mauritius rose 78 percent to Rs395 million ($8.4 million), while insurance revenue increased 4 percent to Rs2.7 billion ($57.5 million).

General insurance profit after tax rose 22 percent to Rs192 million ($4.1 million). The increase was supported by pricing discipline, tighter underwriting, and relatively favorable claims experience. Life insurance profit rose 83 percent to Rs163 million ($3.5 million), helped by higher new-business volumes and continued demand for protection products.

Kenya drags regional insurance performance

The results in Mauritius provided a buffer against weaker performance in East Africa, where the group increased revenue but reported a loss for the period. Insurance revenue from East Africa rose 6 percent to Rs1.39 billion ($29.6 million). The region, however, posted a Rs23 million ($0.5 million) loss, compared with a Rs33 million ($0.7 million) profit a year earlier.

Performance varied across its East African markets. MUA Tanzania increased revenue by 25 percent, but profit fell 12 percent as investment yields declined. In Rwanda, a weaker motor insurance business put pressure on underwriting results despite a 9 percent increase in revenue.

Uganda showed signs of improvement after the group took steps to address problems in the business. Revenue fell 7 percent, but the clean-up measures helped improve its bottom line. Kenya remains the most difficult market for the group. Revenue declined 7 percent, while the business remained unprofitable as limited scale and insufficient capital weighed on operations.

MUA targets efficiency under transformation program

Listed on the Mauritius Stock Exchange, MUA is the largest publicly traded insurance company in Mauritius, with operations spanning Mauritius, Kenya, Uganda, Rwanda, Tanzania and the Seychelles. The group has expanded its business through a combination of organic growth and the integration of insurance operations across the Indian Ocean and East Africa.

The first-half results highlight the different fortunes across MUA’s markets. Stronger earnings in Mauritius more than offset weaker results in East Africa, where some businesses continue to face pressure from underwriting losses, limited scale and capital constraints.

In Kenya, MUA said it is in discussions with regulators to secure approval for a recapitalization of the business as it works to return the operation to profitability. Across the wider group, the insurer said efforts under its multiyear 4X + 1 Transformation Program are helping improve operating efficiency and customer service.