NAIROBI, KENYA: Britam Holdings has announced a Voluntary Early Retirement (VER) program for its staff.
Without disclosing the number of staff the new strategy targets, the insurer said the VER is part of the journey that it embarked on in 2011 that has seen the firm rollout new technologies aimed at enhancing customer relations and engagement.
“The VER is part of our business realignment process that places our customers at the very heart of our business and focuses on building and growing market leadership through greater efficiencies driven by innovation and technological advancement,” said Dr. Benson Wairegi, Britam Group MD.
He added that the firm has an obligation to remain agile, relevant and responsive to the changing market conditions as expected of any dynamic business by its shareholders, customers, partners, employees and the general public.
“While our business remains fundamentally sound with strong growth prospects, the VER program offers all our Kenyan employees a voluntary opportunity for employment separation with an attractive benefits package. The VER program does not impact our financial advisors”, Wairegi said.
In January, the insurer issued a profit warning with profit expected to decline by 25 percent in the current financial year compared to the earnings reported same period in 2016.
According to Britam, the expected decline in earnings is mainly due to a change, in 2016, of the valuation method of the long term liabilities to Gross Premium Valuation methodology from the previously applied net premium valuation in compliance with requirements of the Insurance Act as amended by the Finance Act 2015.