Britam Holdings has reported a net loss of Ksh. 9.1 billion for the financial year ended 31st December 2020. The financial services provider firm attributes this depressed financial performance to poor returns from investments in its associate Housing Finance Group and investment losses in Wealth Management Fund.
Investment losses in Wealth Management Fund LLP amounted to Ksh. 5.2 billion.
Britam is a listed and diverse financial services group with a presence in Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique and Malawi. It deals in Insurance, Asset Management, Banking and Property.
According to its audited financial results, Britam Holdings reported a pre-tax loss of Ksh. 9.7 billion compared to a pre-tax profit of Ksh. 4.6 billion in 2019. Of this loss, Ksh. 2.3 Billion related to a fair valuation loss due to poor equities performance and Ksh. 2.0 billion related to property impairments.
The Group’s Gross Earned Premiums (GEP), and Fund Management Fees was up 4.2% to Ksh. 28.8 billion from Ksh. 27.7 billion in 2019.
This is attributed to the growth of our insurance revenues, especially the international general insurance business, which recorded an increase in GEP of 50.0%, contributing 28.0% of the Group’s GEP. The Group’s total underlying operating costs also declined by 6.4%, attributable to prudent cost control measures.
On the flip side, however, the Group realized positive operating cash flows of Ksh 7.6 Billion and significantly grew its investments in fixed income return assets. Its Balance Sheet size stood at Ksh. 137 billion, a 9.4% growth from 2019, while assets under management closed at Ksh. 250 billion.
The Group said it is finalizing the 2021-2025 strategy following the end of the 2016-2020 strategy. It also plans to complete and commence execution of the Customer-Centric 2021-2025 transformation Strategy.
The Board of Directors has not recommended the payment of a dividend. This is compared to the prior financial year when a dividend of Ksh. 0.25 per share, amounting to Ksh. 630.9 million, was paid out.