Insurance provider British-American Investments Company (Kenya) Ltd (Britam) said on Friday its 2014 pre-tax profit rose by 19.5% lifted by a jump in revenue from the insurance business.
Revenue from insurance rose 56% from 2013 to Ksh14.74 billion ($160.3 million), sending pre-tax profit higher by 20% to Ksh3.73. Speaking during the release of the results, Britam Group Managing Director Dr Benson Wairegi noted that the insurer had managed to sustain the high performance achieved over the last few years. “The key drivers for Britam’s growth were hinged on new business opportunities in regional growth and expansion, strategic partnerships, new product offerings, real estate investment, and opportunities in the county governments,” he said.
“Our growth and diversification strategy remains firmly on course. We have our eyes on Africa. Our focus for investment is in Information Technology, mergers and acquisitions, as well as regional expansion. Our goal is to support the continent’s economic take off through provision of a wide range of financial products and services.”
Insurance is still a fertile ground in Kenya with only about 7% of the 44 million people in Kenya having any form of insurance. The company’s total revenue jumped to Ksh20.69 from Ksh15.13 billion in 2013, while total assets increased to Ksh72.98 from Ksh46.90 billion. Britam is listed on the Nairobi Securities Exchange (NSE) and currently has operations in Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique and Malawi.
The firm has successfully concluded its acquisition of Real Insurance Company, effectively increasing its regional footprint to seven African countries. With earnings per share rising to Ksh1.47 from Ksh1.19, the firm recommended a dividend payout of 30 cents per share up from 25 cents paid in 2013.
Leave a comment