- It reported a net profit of Sh72.1 million compared to a loss of Sh9.1 billion in 2020.
- The firm's chairman says they will continue with prudent cost management initiatives and maintain a stable solvency position.
Financial services firm, Britam Holdings PLC has bounced back to profitability in the year ended December 31, 2021, on improved gross earned premiums from a new business portfolio.
The Nairobi Securities Exchange (NSE) listed firm reported a net profit of Sh72.1 million compared to a loss of Sh9.1 billion in 2020.
The firm's gross earnings during the period under review also improved to Sh1 billion from a Sh9.7 billion loss the previous year.
"The improved operating environment also favored the business resulting in fair value gains from its listed equities portfolio,'' Britam acting MD Charles Kimani said.
The firm reported gross earned premiums and fund management fees of Sh32.5 billion. This represents a significant growth of 12.8 per cent from Sh28.8 billion recorded in the previous financial year.
The regional businesses recorded a total gross earned premium of Sh8.1 billion which is a growth of 3.3 per cent from Sh7.9 billion recorded in the financial year 2020.
This is also an impressive 25.5 per cent contribution to the Group’s total gross earned premiums.
The Group’s investment income in the year was Sh10.9 billion, representing a 15.7 per cent growth compared to Sh9.4 billion recorded in the previous financial year.
The growth in investment income was driven mainly by the continuing shift of the Group’s investment strategy that has seen it continue to pursue a re-allocation of its investments portfolio to grow yields.
Commenting on the financial results, Britam’s Group chairman Kuria Muchiru said last year was a turning point for the firm, following the commencement of a new five-year strategy set to transform it, into a more customer-centric organisation.
"The new transformative strategy hinges on four critical initiatives including, organising the business around the customer; leveraging on technology; turning around key cost drivers and optimising the profile,'' Kuria said.
He added that the firm will continue with prudent cost management initiatives and maintain a stable solvency position.
Kuria said the insurer is already leveraging on strategic partnerships to drive scale, grow its customer base and increase access to insurance services.
Some of the firms it has partnered with are Cellulant, Koa, and Bismart in the Kenyan market. Regionally, it has partnered with Vodacom in Tanzania and MTN in Uganda.