By James Anyanzwa
BAICL, which deals mostly in insurance and asset management business, recorded a pre-tax loss of Sh1.7 billion last year with half-year loss standing at Sh197.6 million. This was mainly due to the fall in value of the company’s quoted investments on the Nairobi Securities Exchange.
However, according to the Group’s unaudited financial statements released yesterday, total investment income for the six months to June 30, rose to Sh2.6 billion from a loss of Sh54.9 million in a similar period last year.
“An important component of the investment income is from fixed income in line with our strategic shift towards more stable earnings,” the Group said, adding that a vibrant NSE also contributed to the enhanced returns. Revenues from the Kenyan insurance business grew 42 per cent to Sh1.3 billion from Sh941 million.
Insurance life business increased 22 per cent to Sh2 billion from Sh1.6 billion while asset management revenue ascended 33 per cent to Sh159 million from Sh120 million in a similar period.
The board of directors did not recommend payment of an interim dividend. BAICL pointed out that the company is on course towards implementing its post initial public offering (IPO) strategy, which seeks to increase focus on growth opportunities.
These include investment in real estate, implementation of a Sh10 billion property fund and expanding the Group’s regional footprint.