Britam profit jumps 10pc to Sh5.5b despite rise in claims

Britam Holding senior leadership led by MD Tom Gitogo during the release of full year financial results on March 31st 2026 at Britam Towers in Upper Hill,Nairobi. [Edward Kiplimo,Standard] Britam Holdings grew its net profit for the year that ended December 2025 by 10 per cent to Sh5.5 billion from Sh5.0 billion in the previous period. Amidst a challenging business environment characterised by increased insurance claims due to floods and political violence, the financial services company recorded a profit before tax of Sh7.9 billion in the period, up from Sh7.3 billion in 2024. While insurance revenue went up to Sh41.7 billion from Sh37.6 billion, the resultant profit from services rendered dropped to Sh3.5 billion from Sh5.1 billion. The 11 per cent increase in insurance revenue was attributed to life and general (insurance) business in Kenya and the region. However, the company managed to offset this with a nine per cent increase in net investment income, rising to Sh31.9 billion from Sh30.1 billion in 2024. Net investment and insurance profit over the period stood at Sh8.8 billion from Sh9.2 billion. These results, described by Group Managing Director and Chief Executive Tom Gitogo as "fairly strong and stable," marked the end of the company's 2021-2025 strategic plan. "These results reflect the resilience of our business and the progress we have made in building a more agile, customer-focused and digitally enabled organisation. We are entering our next strategy cycle from a position of strength, with clear momentum across our chosen markets," said Gitogo at an investor briefing in Nairobi yesterday. He said during the 2021-2025 period, the company optimised its balance sheet and managed year-on-year growth, which softened volatility in financial performance. "We have not been successful in terms of reducing our dependence on Kenyan business, but we have taken steps to diversify our focus on Kenya by opening a life business in Uganda, and this will continue in the next strategy," said Gitogo. He said Kenya contributed about 75 per cent of the overall profit, while the target is for the region to contribute 40 per cent. "We are happy with the contribution from Uganda, Rwanda and Tanzania, but we are also looking at increasing the contribution of our business from Malawi, Mozambique and South Sudan," he said. He explained that the performance of the insurance business line was due to political violence and floods witnessed in 2024 and 2025. This significantly impacted their figures in the first quarter of the year. "We also saw claims that were a result of rioting activities in the second half of 2024. We are not sad about that because that is why insurance exists. Those businesses that may have experienced loss are our customers, and we are proud to pay their claims," Gitogo said. The MD further clarified why the company will not be distributing dividends to shareholders again in 2025. He indicated that plans are in place to obtain regulatory approvals and shareholders' consent to offset negative earnings from the Covid-19 period via the shareholders' premium account. He mentioned that the process of offsetting the negative income from that period has been taking longer, and this move will enable the company to resume paying dividends. "We have realised that the exhaustion of our profitability is taking longer, and one of the things we will be asking our shareholders is to approve the application of our share premium account," he said. The share premium account holds a company's equity in relation to the additional amount paid above the share's nominal value. It functions as a cash reserve. Britam recorded a loss of Sh9.1 billion in 2020 due to market impacts resulting from the Covid-19 pandemic. Since then, the company has not paid dividends to shareholders. "Depending on when the approvals are granted, it could be as early as this year. Any time from the second half, since it is not a cash flow issue but a technical one, he stated.

Britam profit jumps 10pc to Sh5.5b despite rise in claims

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Britam profit jumps 10pc to Sh5.5b despite rise in claims

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