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Britam rises from a loss to post Sh2.8 billion pre-tax profit

Friday, March 15, 2013 - 00:00 -- BY LOLA OKULO

FINANCIAL services group British American has made a 265 per cent jump in profit after reporting Sh2.8 billion pretax profit for last year compared to the Sh1.7 billion loss in 2011.

Britam's financial report for the year ended December 2012 shows that the group's total income almost tripled from Sh3.4 billion in 2011 to Sh11.7 billion last year boosted by sharp increase in investment income.

"In 2012 we had more income coming from more fixed income sources reducing some of the issues we had been having in 2011 with fluctuating incomes," said group finance director Gladys Karuri.

Britam holding company has subsidiaries that operate in the insurance, property and asset management business and has also bought a stake in Equity Bank and Housing Finance companies. The insurance business had the highest profit before tax of Sh1.5 billion compared to Sh1.1 it recorded in 2011.

Through its subsidiaries, it has operations in Uganda, Kenya and plans to open in Rwanda before the end of the year according to group managing director Benson Wairegi.

The value of assets managed by Britam's asset management firm grew from Sh20.4 billion in 2011 to Sh28 billion.Revenue from asset management grew by 58 per cent from Sh238 million to Sh377 million recorded in 2012.

Revenue from its general insurance business grew by 36 per cent from Sh2.1 billion to Sh2.9 billion. In its assets portfolio, Britam invested 20 per cent of its funds in fixed income, 31 per cent in equities, 5 per cent in property and 20 per cent in other unnamed assets.