Britam Climbs Out of Negative Territory. Posts Sh3.5bn Profit

Britam Holdings has posted a Ksh3.5 billion profit after tax for the full year ended December 2019, climbing from a financial hole the company found itself in after reporting Ksh2.2 billion in losses the previous year.

Group Managing Director Benson Wairegi attributes the improved financial performance to increased growth of the embedded value of the Britam Life Assurance Company to Ksh16.9 billion, representing a 27% uptick.

Wairegi also says the improved performance was on growth in gross earned premiums which adjusted up 12% as well as improved returns from equities and fixed-income investments.

Britam’s balance sheet shows the group’s net revenue stood at Ksh23.6 billion as at the end of December 2019 against the Ksh21.7 billion loss reported the previous year.

Profit before tax stood at Ksh4.57 billion compared to the Ksh2.29 billion loss reported at a similar period the previous year

Despite the sound financial perfomance the group lost Ksh747 million after investing in property versus the Ksh507 million gained the previous year.

Assets under the management of the group are worth Ksh125.24 billion versus Ksh103.65 billion in assets under Britam’s name at the end of December 2018.

Consequently, shareholders are now in for a dividend of Ksh630.9 million or 25 cents per share after recommendation from the board in stark contrast to 2018 when they did not take home anything.

“2020 presents a challenging macro environment. There are a number of key global and regional risks that affect the Group including COVID – 19, locusts’ invasion and a decline in the stock market performance.” Wairegi and Group Chairman Andrew Hollas said in a statement.

‘We are optimistic that there will be concerted effort to mitigate the effects of these adverse developments to the economies and the world at large,” said the Britam duo.

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