Britam rides on innovation to post 25pc jump in profit

By NICHOLAS WAITATHU

Britam has recorded a 25 per cent increase in its half-year of trading ending June 30, 2013. The Group’s profit before tax rose to Sh2.3 billion in June 2013, up from a profit of Sh1.8 billion recorded in June 2012.

Its earnings per share increased by 22.6 per cent from Sh0.93 per share in June 2012 to Sh1.14 per share as at June 2013. The growth has been buoyed by revenue diversification and increased local and regional presence.

Announcing the financial results in Nairobi on Thursday, group Managing Director Benson Wairegi attributed the boost to implementation of growth strategies, supported by product innovation.

“The new business growth along with the investment gains propelled the groups’ excellent performance. All our business segments recorded an increase,” he said. The group’s core business revenue grew to Sh4.7 billion up from Sh3.5 billion recorded the same period last year accounting for a 33 per cent increase. 

“The Group is reaping benefits from its business diversification strategy with strong local and regional presence,” said Wairegi.

He added insurance business revenue increased to Sh4.4 billion compared to Sh3.4 billion in the review year while asset management revenue increased by 68 per cent to Sh268 million as investment income rose to Sh3.7 billion, representing a growth of 44 per cent.

“Our half year results for 2013 show improvement over 2012 in all key measures, with profitability, driven by a strong growth in written premium, investment income, and a material uplift in business growth,” he said.

Claim settlements

“Premiums have continued to grow due to new underwriting business, introduction of new products and enhanced business relationships with brokers, agents as well as good track record of claim settlements,” he explained.

Income increased by 31 per cent to reach Sh3.7 billion; a situation Wairegi said has been supported by a well thought out strategy on diversification of the investments portfolio across key stable asset classes including properties and fixed income investments. 

Wairegi added the company will enhance local and regional expansion to grow its business segments in addition to exploiting the untapped potential in the property market.