•The Group’s total insurance revenue and fund management fees was up 40 percent to Sh37.1 billion from Sh26.4 billion in 2022.
•The Group's balance sheet remains robust, with total equity increasing to Sh25.69 billion from Sh22.16 billion in the previous year.
Image: HANDOUT
Britam doubled its after tax profit to Sh3.3 billion for the year ended December 31, 2023 from the Sh1.6 billion the financial serves firm posted in the same period in 2022.
The 97.5 jump is attributed to a growth in revenue from both insurance and investment activities, which cushioned the business from fair value losses incurred from fixed income securities.
The Group's insurance revenue increased to Sh36.4 billion, reflecting a 41% increase from Sh25.8 billion in 2022.
The growth was primarily driven by significant growth in both the Kenya insurance businesses as well as the general insurance regional business, which contributed 29% of the insurance revenue in the year.
The Group’s total insurance revenue and fund management fees were up 40 percent to Sh37.1 billion from Sh26.4 billion in 2022.
Of this amount the international businesses generated Sh10.6 billion, accounting for 29 percent of the total insurance business revenue. The international businesses remain a key pillar of the Group’s geographical diversification strategy.
Kenya businesses delivered a pre-tax profit of Sh3.4 billion while the regional businesses contributed Sh1.4 billion to the Group’s pre-tax profit, accounting for 29 percent.
The insurance businesses recorded improved underwriting performance mainly driven by profitable topline growth and claims management.
Meanwhile, net investment income grew to Sh11.61 billion from Sh11.32 billion. The growth in the investment portfolio returns was driven by the ongoing realignment of the portfolio with the objective of growing and stabilising yields.
The Group's balance sheet remains robust, with total equity increasing to Sh25.69 billion from Sh22.16 billion in the previous year.
This improvement in equity highlights the Group's strengthened financial position and underscores its ability to weather economic uncertainties.
The year under review marks the third year of the Group’s implementation of its five-year strategic plan for the period 2021-2025.
The positive outcome achieved during the year is a clear indication that the Group's customer-centric strategy is yielding significant benefits.
This strategy prioritises the enhancement of customer value and experience, expansion of the customer base to drive growth, and improvement of efficiencies to generate better returns.
Britam’s Group MD & CEO Tom Gitogo said that in the period under review, the business continued to grow its revenues while operating costs grow at a lower rate than the topline growth.
“Continued focus on customer-centric transformation continues to grow our customer numbers and drive the uptake of our products, especially through our emerging market consumers, partnerships and digital channels,” added Gitogo.
The Group’s profitability has however been impacted by fair-value losses on investment assets, especially on its fixed-income instruments. This is attributed to the challenging macroeconomic environment, which has been characterised by rising yields.
Supported by its strong brand position, Britam remains focused on seizing the growth opportunities across its footprint, innovating despite the low penetration of insurance products, and driving financial literacy.
“Looking ahead, we remain committed to driving sustainable growth and enhancing shareholder value through the continued execution of our strategic roadmap,” said Gitogo.