GROWTH IN INVESTMENT INCOME

No dividend despite Britam's Sh647m profit before tax in half-year results

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

In Summary

• This is a significant improvement compared to a loss before tax of Sh 2.3 billion reported during a similar period last year.  

• Investment income during the period grew to Sh4.9 billion, representing a 35 per cent growth compared to a similar period last year.

Britam Insurance headquaters in Upper Hill. /FILE
Britam Insurance headquaters in Upper Hill. /FILE

Britam Holdings PLC has posted a profit before tax of Sh 647milion in its half-year results for the period ending June 30th, 2021.

This is a significant improvement compared to a loss before tax of Sh 2.3 billion reported during a similar period last year.  

"The improved performance is attributed to growth in premiums from new business and investment income from its broad investment portfolio," Britam said on Tuesday.

However, the Board of Directors did not recommend the payment of an interim dividend for the six-month period to June 2021.

The firm also registered significant growth in investment income following the re-allocation of its investment portfolio to increase yields.

Investment income during the period grew to Sh4.9 billion, representing a 35 per cent growth compared to a similar period last year.

The regional businesses contributed 24 per cent of the Group’s gross earned premiums.

The Group’s gross earned premiums and fund management fees were up 5.7 per cent to Sh 14.9 billion.

Managing Director, Tavaziva Madzinga said the Group remains optimistic of sustaining profitability in 2021 on the back of an improving operating environment.

"In the short term, we will however continue to pursue prudent cost management initiatives and maintain a stable solvency position," he said.

"The business fundamentals remain strong with both the Group’s assets and shareholders’ funds growing in the period."

Edited by D Tarus