Britam Holdings Plc made Kshs 2.38 billion in pre-tax profit for the half-year period ending June 30, 2023, but will not be paying shareholders any dividends.
This is a significant increase compared to the Kshs 812 million recorded in the same six-month period ended June 30, 2022.
The group said it sustained growth in gross earned premiums and fund management fees, which were up 31 per cent to Kshs 20.7 billion for the first half of 2023.
Insurance services revenue also increased by 34% to Kshs 16.6 billion.
In addition, the company experienced strong growth in interest, dividend, and rent income, which was up 28 per cent to Kshs 7.1 billion.
The regional general insurance businesses contributed 23 per cent to the Group’s gross earned premiums.
As at 30 June 2023, the total shareholders’ equity was up 10% to KShs 23.5 billion, reflecting the improved results.
The group disclosed that this was its first set of financial results under the IFRS 17 Accounting Standard.
“The Group has fully implemented IFRS 17 effective January 1, 2023, and the resulting adjustments on the net assets as at 1 January 1, 2022, are included in the opening retained earnings. The 2022 financial statements have been restated in compliance with IFRS,” said Charles Kimani Njuguna – Group Finance Director.
However, the Group’s profitability continues to be negatively impacted by fair-value losses on investment assets, especially on its fixed-income instruments. This is attributed to the challenging macroeconomic environment which has been characterized by rising yields.
Britam Holdings Plc, has today announced a profit before tax of Kshs 2.38 billion for the half year period ending 30 June 2023. The profit almost triples the Kshs 812 million recorded in the same six-month period ended 30 June 2022.
This is the Group’s first set of financial… pic.twitter.com/LYyIgxundh
— Britam Cares (@BritamEA) August 31, 2023
Britam Holdings Plc’s Chairman, Kuria Muchiru, commented on the financial performance, saying that they managed to grow revenues by focusing on improving customer experience while leveraging strategic partnerships across different sectors to drive scale and grow their customer base.
He added that the strategy also entailed prudent cost management initiatives, which are bearing fruit as seen by the drop in operating expenses.
Commenting on the Group’s financial performance, Britam’s Group MD & CEO Mr Tom Gitogo said: “We are confident of the growth and performance trend that Britam has achieved, supported by its subsidiaries in Kenya and in the region. The business continues to grow its revenues while operating costs grow at a lower rate than the topline growth.”