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Britam Half Year Results Impacted by Negative Effects of Covid-19 on Listed Equities and Property Investment

Britam Holdings has today reported a gross earned revenue of Shs 13.8 billion, a 9 percent  increase from Shs 12.6 billion from 30 June 2019. This growth is mainly supported by the continued growth of the international insurance business revenue.

Thursday 20th August 2020, Nairobi: Britam Holdings has today reported a gross earned revenue of Shs 13.8 billion, a 9 percent  increase from Shs 12.6 billion from 30 June 2019. This growth is mainly supported by the continued growth of the international insurance business revenue.

Britam operates in six countries outside Kenya. The International insurance division contributed 23 percent of the Group’s gross earned premium and a profit of Shs 575 million.  

However, Britam Holdings has reported a loss before tax of Shs 2.3 billion in the six-month period to 30 June 2020 compared to a profit before tax of Shs 2.4 billion in the same period last year. The unfavorable results reflect the significant negative impact of Covid-19 on the operating environment particularly on investments in listed equities and property.

The Group’s operating costs declined by 6 percent on the back of a 9 percent revenue growth. This drop is attributed to prudent cost management initiatives in the period under review.

The Life Assurance business continues to underwrite profitable new business with the embedded value closing at Shs 17.0 billion for the period to 30 June 2020, with an annualized return of 9 percent.

 The company’s total assets increased to Shs 128.5 billion, representing a growth of 3 percent from 31 December 2019.

Dr. Wairegi said the adverse impact on the half-year performance is largely attributable to the fair value losses of Shs 3.1 billion following the depressed performance of the stock market as investor preferences shifted to fixed income securities and property revaluation losses of Shs 929 million due to the depressed property market which has been characterised by low occupancy levels and depressed rental yields.

Commenting on the results, Dr. Wairegi said that “The Group’s fundamentals remain strong and we are on track in the execution of our Strategy and coupled with an improved operating environment the Group’s performance outlook is positive.

ENDS…//

Note to Editors

Britam Holdings Plc

Britam is a leading diversified financial services group and is listed on the Nairobi Securities Exchange. The group has presence in seven Africa countries in Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique and Malawi.

Britam offers a wide range of financial products and services which include: Asset Management, Life Assurance, Retirement Planning, General Insurance, Health Insurance, Banking and Property. These financial solutions enable our customers to create and protect their wealth and lives every step of the way. 

For more information please visit http://www.britam.com