Britam profit jumps 77 percent to Sh668 million on rising premiums
Britam’s profit for the six months ended June rose 77 percent to Kes667.5 million from Kes376 million in a similar period last year on rising premiums and investment income.
The total gross earned premium and management fees in the six-month period were up 6 percent to Kes15.8 billion from Kes14.9 billion in the first half of 2021.
There was significant growth in investment income mainly from interests and dividends driven by the reorganization of investments portfolio to stabilize and grow yields.
Investment income grew 26 percent to Kes6.2 billion compared to Kes4.9 billion recorded in the same period of 2021.
Britam also benefited from the improved revenue from both local and regional businesses which generated 23 percent of the group’s total gross earned premiums as part of the Group’s revenue diversification strategy.
Read also: NSSF drops Britam for Sanlam, Co-Op fund managers
The implementation of the new transformational strategy is already bearing positive results in terms of growth in revenues, operating efficiencies, and stabilisation of financial performance, the regional insurer said.
However, the Group’s profitability was negatively impacted by fair value losses on investment assets, especially on its fixed income instruments as inflationary pressures and a tightening credit environment continue to push yields upwards in a challenging macroeconomic environment.
The total shareholder’s equity as at 30 June stood at Kes19.9 billion, a 4.1 percent increase from 31 December 2021, reflecting Britam’s improved financial results.
The Board of Directors did not recommend the payment of an interim dividend for the half-year period ended 30 June 2022.
