PAY DAY

Britam shareholders approve Sh631 million dividend

It reported an all-time high net profit of Sh3.54 billion last December

In Summary
  • During the year in review gross earned premiums and fund management fees, registered a growth of 11 per cent.
  • Shareholders have been warned to expect fewer returns at the end of the current financial year as covid-19 take toll on business activities.
Britam Group MD Benson Wairegi with the company's principal executive director Finance, Operations and Strategy Gladys Karuri and Group Legal and Company secretary Nancy Kiruki after the firm's first ever virtual AGM.

Diversified financial firm Britam Holdings Plc has approved a final dividend of 25 cents per share for the year ended on December 31, 2019, during the 24th Annual General Meeting (AGM) held virtually yesterday.

This is after the firm emerged from a loss to post an all-time high net profit of Sh3.54 billion helped by growth in insurance revenue and appreciation in the value of financial assets such as shares on the Nairobi bourse.

It had reported a loss of Sh2.21 billion the previous year.

 

During the year in review gross earned premiums and fund management fees, registered a growth of 11 per cent.

This was at the backdrop of strong revenue growth in Life assurance and international general insurance businesses, which achieved growths of 17 per cent and 22 per cent respectively.

The firm’s life business extended dominance of the country’s life industry with a 24.52 per cent market share, more than ten percentage points ahead of the competition.

International business contribution to gross earned premium grew to 19 per cent up from 18 in 2018.

Speaking during the AGM, Britam Group managing director Benson Wairegi attributed the success to heavy investment in information technology that has come in handy as the world battle Covid-19.

‘’Heavy investment in technology through the project Jawabu is paying off especially during this time, as we are anchoring the company’s new mode of operation, by ensuring business continuity,’’ Wairegi said.

The company has fully digital capabilities from the issuance of quotations to the customer onboarding right through to the issuance of policies.

 

According to Wairegi, Britam was also among the first to go to market with the issuance of digital motor certificates for its general insurance business.

He however warned shareholders to expect fewer returns at the end of the current financial year as covid-19 take toll on business activities.

''The effects of the covid-19 pandemic would lead to a slowdown in the 2020 financial year, as premium growth would not be as robust as expected,’’ Wairegi said.