BRITAM HALF YEAR PROFIT

Britam returns to profitability; posts Sh2.4B in before tax

This was pushed by international insurance business that contributed 19 per cent of the Group’s insurance revenue in the period.

In Summary

• Britam Holdings has reported Sh2.4 billion profit before tax in the first six months of 2019 compared to Sh1.4 billion in 2018 due to its regional business, to return to profitability.

Britam Holdings Limited Group managing director Benson Wairegi with group finance and strategy director Gladys Karuri at the release of the company’s 2015 full-year financial results /COURTESY
Britam Holdings Limited Group managing director Benson Wairegi with group finance and strategy director Gladys Karuri at the release of the company’s 2015 full-year financial results /COURTESY

Britam Holdings has reported Sh2.4 billion profit before tax in the first six months of 2019 compared to Sh1.4 billion in 2018 due to its regional business, return to profitability.

The Nairobi Securities Exchange-listed firm has attributed the 78 per cent growth in pre-tax to a jump in the core business, increase in returns from investments and improved underwriting performance on the back of better claims management practices.

In 2018, the firm announced Sh2.85 billion loss for the year ended December 31, compared to a profit of Sh1.38 billion in 2017.

 

The international insurance business contributed 19 per cent of the Group’s insurance revenue in the period, boosting profitably to the Group.

The Group’s asset base increased by 10 per cent to Sh113.8 billion from Sh103.7 billion in December 2018, while shareholders’ funds increased to Sh25.7 billion, eight percent growth from 31 December 2018.”

The Group investment assets grew by 11 per cent with fixed income contributing 46 per cent of total assets up from 35 per cent in 2018.

“Property has experienced challenges over the past two years but Britam still views property as a long term investment that is suitable for investor portfolio as an inflation hedge,” Britam Group managing director Benson Wairegi said.

During the period under review, the Life Assurance business recorded improved performance and continued to cement its position as the market leader.

The Asset Management business recorded a sterling performance closing at Assets Under Management (AUM) of KShs.172.7 billion, a 23 per cent increase from 2018.

 

The Board of Directors did not recommend payment of an interim dividend.