Britam pretax profit jumps 20pc

British-American Investments Company (Kenya) (Britam) said its 2014 pretax profit rose 20 per cent, helped by a jump in revenue from the insurance business.

Revenue from insurance increased by 56 per cent in 2013 to Sh14.74 billion, sending pretax profit higher by 20 per cent to Sh3.73 billion. Insurance revenue in Kenya grew to Sh12.47 per cent while those in the region earned the company Sh1.5 billion. Total revenue rose to Sh20.69 billion from Sh15.13 billion in 2013, while total assets increased to Sh72.98 billion from Sh46.90 billion.

The diversified financial services company, which also has operations in Uganda, Rwanda, Tanzania, South Sudan, Mozambique and Malawi, saw its net profit increase by 21.7 per cent to Sh2.8 billion from Sh2.3 billion during the previous financial year.

“All our business segments recorded growth. This is despite the challenges that prevailed in the market during the review period,” said Britam Group Managing Director Benson Wairegi during an investors’ briefing, yesterday. “All our regional subsidiaries made profits expect in Rwanda and Tanzania.”

He said regional subsidiaries contribution to revenue grew 436 per cent to Sh1.6 billion from Sh294 million, which is attributed to organic growth and business acquisition.

Wairegi said the year saw the company increase its asset base by acquiring Real Insurance and 24 per cent stake in Housing Finance. Britam acquired Real insurance at a cost of Sh1.3 billion, which the firm paid Sh900 million in cash and Sh400 million in share swap. Its shareholding stake in HF has increased to 46 per cent.

Earnings per share rose to Sh1.47 from Sh1.19, and the company recommended a dividend payment of Sh0.30 per share, up from Sh0.25 the previous year.