Britam Posts Record Ksh9.1 B***ion Loss

Britam slid back into loss-making territory with its full year results, posting a loss of Ksh9.1 b***ion for the year ended December 31, 2020.

The firm had recorded pre-tax profit of Ksh4.6 b***ion for the full year 2019. The m***ive decline for 2020 was driven by a Ksh5.2 b***ion investment loss provision for Wealth Management Fund LLP, a fund manager under Britam ***et Managers- a subsidiary of Britam **ldings.

“The **lding Company is committed to support the fund to fulf*** its obligations as they fall due, through management oversight of the fund’s operations and the agreed recovery plan,” Britam noted.

The regional insurer took a hit from losses in its investment portfolio. It booked fair value losses of Ksh2.3 b***ion from falling stock market valuations and Ksh2 b***ion from property impairments.

A reduction of the firm’s investment in **using Finance, for instance, represents Ksh823 m***ion of the annual loss.

Britam’s core under-writing business, **wever, posted a solid performance for the year. Net earned premiums stood at Ksh23.1 b***ion .

READ ALSO>>>>>Britam Sends 138 Workers Home as Restructuring Begins

The firm also demonstrated impressive performance in cash generation and ***et growth

Cash inflows generated Ksh7.6 b***ion for Britam while ***ets grew by 9.4 per cent to Ksh137 b***ion. ***ets under management (AUM) closed the year at Ksh250 b***ion.

Total expenses rose 22.6 per cent to Ksh.39 b***ion, driven up by claims and benefits paid out.

To turn things around, Britam is banking on digitization and a new organizational structure, key elements of the firm’s 2021-2025 strategic plan.

The company’s share**lders w*** not receive a dividend for the year’s results, after a 25 cents per share pay-out last year.

READ>>>>>After 40 Years in Charge, Britam Boss Wairegi Hands Over to New CEO