Dear Shareholders,

On behalf of the Board of Directors, I am pleased to present the performance of MUA Ltd for the year ending 31 December 2024, also reflecting the results of 2023. The year 2024 marks a period of significant progress, particularly as we navigated the challenges of transitioning to the IFRS17 accounting standard. I want to extend my thanks to our shareholders for your patience and support. Our teams have worked hard to meet the significantly more complex demands of this standard. We are proud to have succeeded but every “first time” is difficult and so it has taken more time than in previous years to finalize the accounts in the new format.

Results

The last two years have been transformative for MUA Ltd. Inflation and political instability were external challenges, but it was also a time of internal reset and strategic recalibration. Our teams successfully navigated market headwinds, new accounting standards as well as unexpected difficulties, particularly in our MUA Kenya operations.

Inflationary pressures in 2023 put a strain on claims costs, compelling us to recalculate premiums and tighten underwriting standards. Although the nature of General Insurance means that the effects of these measures took time to fully materialize, I am pleased to report that in 2024 they have clearly started to show results, contributing to a notable improvement in our bottom line. This progress, paired with the emerging first results of our 4X+1 Transformation Programme, has been pivotal in positioning MUA for profitable further growth.

A specific challenge arose in late 2023 and early 2024, when an internal review at MUA Kenya uncovered significant legacy issues. This led to a one-off need to strengthen reserves, negatively impacting 2023 results. While the impact on the Group’s overall capitalisation was limited, it did significantly affect our consolidated profits for 2023. However, this situation has been fully addressed, with stringent corrective measures now in place to safeguard against future recurrence. We are currently collaborating with the Kenyan authorities to strengthen the local capital base. This process is made more complex by a regulatory requirement that limits foreign insurers to holding no more than two-thirds of the capital in a local insurer—a threshold we have already reached. We are confident to find a solution for this last step of the clean-up in MUA Kenya and remain committed to our East African operations. The actions taken have made us stronger and more resilient going forward.