Britam: Expect 25% profit drop for 2017

Britam Holdings PLC has issued a profit warning, saying it anticipates earning for the current financial year to decrease by at least 25% compared to the earnings reported for the same period in 2016.

The company says the decrease is mainly attributable to a change, in 2016, of the valuation method of the long term liabilities to Gross Premium Valuation (GPV) methodology from the previously applied Net Premium Valuation (NPV) in compliance with the requirements of the Insurance Act as amended by the Finance Act 2015.

“This one-off change positively impacted the earnings in 2016 by Shs 5.2 billion. Without the impact of the one-off change, the company’s performance has improved in 2017,” Britam Holdings said in a public notice placed in sections of Friday’s press by Company Secretary Nancy K. Kiruki.

She added that the company is on track in executing its 2016-2020 strategy on the backdrop of which, the Board and the Management are optimistic that the business will continue to perform well in 2018.

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Britam Holdings PLC, previously known by as Britam Holding Limited and before then as British-American Investments Company, is a diversified financial services group and is listed on the Nairobi Securities Exchange. The group offers a wide range of financial products and services in insurance, asset management, property, and banking in the African Great Lakes region.