Britam Holdings Plc has announced that it has posted a Ksh. 3.2 billion net profit for the year ended December 31, 2023. This is a marked improvement from the Ksh. 1.6 billion the company posted in the same period in 2022.
The Group’s insurance revenue increased to Ksh. 36.4 billion a 41% increase from the Ksh. 25.8 billion is posted in 2022. The increase was driven by growth in both the Kenya insurance businesses as well as the general insurance regional business which contributed 29% of the insurance revenue in the year.
The Group’s total insurance revenue and fund management fees was up 40% to Ksh. 37.1 billion from Ksh. 26.4 billion in the previous period. Of this amount the international businesses generated Ksh. 10.6 billion, accounting for 29% of the total insurance business revenue. The international businesses remain a key pillar of the Group’s geographical diversification strategy.
Kenya businesses delivered a pre-tax profit of Ksh. 3.4 billion while the regional businesses contributed Ksh. 1.4 billion to the Group’s pre-tax profit, accounting for 29%. The insurance businesses recorded improved underwriting performance mainly driven by profitable topline growth and claims management.
Meanwhile, net investment income grew to Ksh. 11.61 billion from 11.32 billion. The growth in the investment portfolio returns was driven by the ongoing realignment of the portfolio with the objective of growing and stabilizing yields.
The Group’s balance sheet remains robust, with total equity increasing to Ksh. 25.69 billion from Ksh. 22.16 billion in the same period in 2022.
The year under review marks the third year of the Group’s implementation of its five-year strategic plan for the period 2021-2025. This strategy prioritizes the enhancement of customer value and experience, expansion of the customer base to drive growth, and improvement of efficiencies to generate better returns.
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. Continued focus on customer-centric transformation continues to grow our customer numbers and drive the uptake of our products, especially through our emerging market consumers, partnerships and digital channels.”
The Group’s profitability was 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.
The Britam Holdings Board of Directors did not recommend the payment of a dividend for the year ended 31 December 2023.