Britam swings into half-year profit as premiums rise
Regional insurer Britam is back into making profit with its earnings for the six months to June closing at 376.3 million from a loss of Kes1.6 billion reported in June 2020.
Financial disclosures show that the turnaround for the Group was anchored on greater revenues in the half with total income surging by a remarkable 52.7 per cent to Kes19.7 billion from Kes12.9 billion last year.
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Britam attributed the upturn to notable growth in premiums from new business and investment income from its broad investment portfolio.
“The Group remains optimistic of sustaining profitability in 2021 on the back of an improving operating environment and gains from our new transformative strategy,” noted Group Managing Director Tavaziva Madzinga.
The higher income for Britam has helped offset a 25.2 per cent increase in the insurer’s overall expenses that swelled to Kes18.9 billion from Kes15.1 billion recorded at a similar period last year.
In the period, Britam’s total assets stood at Kes146.9 billion, being a 7.2 per cent increase while investment income went up to Kes4.9 billion, representing a 35 per cent growth.
Claims and policy holders’ benefits and expenses jumped by 27.1 per cent to Kes11.7 billion as the business took initiatives to cover customers from the adverse effects of Covid-19 pandemic.
The board of Britam Holdings has, however, skipped the declaration of an interim dividend for the period.
