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Resurgent Britam posts Sh72m profit

Britam Chairman Kuria Muchiru (left), Director Strategy Catherine Karita and acting MD Charles Njuguna during financial results briefing. [Elvis Ogina, Standard]

Financial services firm, Britam Holdings has bounced back to profitability, with the company reporting a net profit of Sh72.1 million in the year to December 2021. This compares to a loss of Sh9.1 billion in 2020.

The firm attributed the rebound to growth in gross earned premiums from new business and investment income from its portfolio.

Britam’s revenues increased 33 per cent to Sh40.2 billion last year compared to Sh30.2 billion in 2020. The company said the performance was supported by growth in premiums in its local and regional insurance businesses and investment income from its investments.

It noted that improved operating environment also favoured the business resulting in fair value gains from its listed equities portfolio.

Britam in 2021 started implementing a five-year strategy it said will transform it to be a more customer-centric organisation.

“The initiatives made so far in the implementation of the new transformational strategy coupled with an improving operating environment are already delivering good results in terms of revenue growth and stabilisation of financial performance,” said Britam Group Chairman Mr Kuria Muchiru.

“We are also experiencing a drop in operating expenses and improving customer experience as we continue to embed customer-centricity across our operations. The number of customers subscribing to our products through online platforms continues to grow. We will continue with prudent cost management initiatives and maintaining a stable solvency position.”

The group reported gross earned premiums and fund management fees of Sh32.5 billion - representing a 12.8 per cent growth from Sh28.8 billion recorded in the previous financial year.

Regional general insurance businesses continued to support revenue growth and profitability, recording gross earned premium of Sh8.1 billion.

This is a growth of 3.3 per cent from Sh7.9 billion recorded in the financial year 2020. This is a 25.5 per cent contribution to the group’s total gross earned premiums.