Britam Holdings Plc, a listed underwriter, posted a Net Profit of KSh 72.1 Million in 2021. This performance is compared to a Net loss of KSh 9.1 Billion over a similar period in 2020.
The Group’s gross earned premium and fund management fees increased to KSh 32.5 Billion in 2021 from KSh 28.8 Billion in 2020, a growth of 12.8%.
The regional general insurance business recorded an increase in Gross Earned premiums of 3.3% to KSh 8.1 Billion from KSh 7.9 Billion in 2020. The business now contributes 25.5% of the Group’s earned premiums.
The Group’s total operating costs were down 15.8% to KSh 11.3 Billion, despite the business incurring a one-off business transformation expense as part of implementing its new transformation strategy.
Total income from interest and dividends, commissions, gains from financial assets, less net loss from investment property increased to KSh 40.2 Billion in 2021 from KSh 30.2 Billion in 2020, while total expenses fell marginally to KSh 38.9 Billion in 2021 from KSh 39 Billion in 2020.
Britam Holdings Pre-Tax Profit hit KSh 1.01 Billion in 2021 from a Pre-Tax Loss of KSh 9.7 billion in 2020, while the firm’s comprehensive income increased to KSh 2.02 Billion in 2021 from a comprehensive loss of KSh 11.7 Billion in 2020.
Directors of Britam attribute this improved performance to growth in Gross earned premiums from new business and investment income from the Group’s investments. Additionally, the business recorded gains from its investments in listed securities and an improved operating environment.
The underwriter’s profitability, measured by Earnings per Share improved from negative KSh 3.62 to KSh 0.02 in 2021. The Group’s investment income grew by 15.7% to KSh 10.9 Billion from KSh 9.4 Billion in 2020, while the business expanded its balance sheet size to KSh 153.4 Billion in 2021 from KSh 137 Billion in 2020.
The life assurance business grew to KSh 17.2 Billion in 2021, representing a return of 6.6% as the business continues to underwrite profitable new business coupled with an improved operating environment.
Britam is a leading diversified financial services group and has a presence in seven African countries in Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique and Malawi.
It offers a wide range of financial products and services in Insurance, Asset management, Banking and Property.
Britam Holdings Board of Directors does not recommend the payment of a dividend for the year ended 31st December 2021.
The Group’s Annual General Meeting(AGM) is scheduled for 24th June 2022.
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