Britam posts Ksh.3.5B profit from higher investments gains

Britam Holdings returned to profitability posting Ksh.3.5 billion in earnings for the period ending December 31 2019 from higher investments gain.

In 2018, the insurer fell into Ksh.2.2 billion loss after taking a sizable hit from its investments in publicly listed firms.

The Group’s total income grew by 38 per cent in 2019 to Ksh.36.4 billion as the firms marked a Ksh.4.8 billion fair value gain from its financial assets from a Ksh.3 billion loss in 2018.

Further, Britam saw its earnings from underwriting grow to Ksh.23.6 billion from Ksh.21.7 billion as gross earned premiums hit Ksh.27.7 billion in the period.

The insurer however registered a loss in its properties investment, losing Ksh.747 million from a Ksh.507.2 million gain in 2018.

The Group’s individual business registered mixed results with Britam’s Life Assurance Company booking a Ksh.2.6 billion profit from a Ksh.567.6 million loss from higher income.

Britam General Insurance Company and Britam Asset Managers meanwhile booked losses of Ksh.185.4 million and Ksh.124.3 million respectively from lower net earned premiums and unrealised losses in investments.

From the resulting higher earnings, the board of Britam has recommended the payment of Ksh.630.9 million in dividends to shareholders, an equivalent pay of 25 cents per share from Ksh.1.41 in earnings per share (EPS).

The firm says it remains engaged in its strategy to grow its portfolio of products to customers and investments in technology against the challenging operating environment.

“2020 presents a challenging macro environment. There are a number of key global and regional risks that affect the Group including Covid-19, locusts’ invasion and a decline in the stock market performance,” noted Britam in a statement.

“We are optimistic that there will be concerted effort to mitigate the effects of this adverse developments to the economies and the world at large.”