Britam Holdings has posted a profit before tax of Ksh. 647 million in its half-year results for the period ending June 30th, 2021. This is an improvement compared to a loss before tax of Ksh. 2.3 billion posted during a similar period last year.
Profit after tax was up to Ksh. 376.3 million from a loss of Ksh. 1.6 billion posted in the same period in 2020.
The improved performance is attributed to growth in premiums from new business and investment income from its broad investment portfolio.
The firm also registered significant growth in investment income following re-allocation of its investment portfolio to increase yields. Investment income during the period grew to Ksh. 4.9 billion, representing a 35% growth compared to a similar period last year.
The Group also experienced growth in revenue from both its local and regional businesses. The regional businesses contributed 24% of the Group’s gross earned premiums. The Group’s gross earned premiums and fund management fees were up 5.7% to Ksh. 14.9 billion.
Commenting on the results, Britam’s Group Managing Director, Tavaziva Madzinga said, “The Group remains optimistic of sustaining profitability in 2021 on the back of an improving operating environment and gains from our new transformative strategy. In the short term, we will however continue to pursue prudent cost management initiatives and maintain a stable solvency position.”
Britam’s claims and policy holders’ benefits and expenses increased by 27.1% to Ksh. 11.7 billion as the business took measures to cushion customers from constraints occasioned by COVID-19.
Total comprehensive income improved to Ksh. 1.2 billion from a comprehensive loss of Ksh. 4.2 billion in the same period in 2020.
As the local and regional economies recover from the effects of the COVID-19 pandemic, Britam is optimistic of improved performance across its local and regional businesses in the second half of 2021.
However, due to economical uncertainties, the Board of Directors did not recommend the payment of an interim dividend for the 6-month period to June, 2021.