Britam Holdings Plc 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 LLP, a fund managed by its subsidiary Britam Asset Managers.
Investment losses in Wealth Management Fund LLP amounted to KSh 5.2 Billion.
Britam presence in Africa
Britam Holding Plc 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 Plc reported a pre-tax loss of KSh 9.7 Billion compared to a pre-tax profit of KShs 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 unfavourable operating environment adversely impacted the Group’s investment in associate – HF Group Plc – contributing to the Group results, a share of loss at KSh 823 Million and a reduction in the value of this investment by KSh 603 Million.
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.
The Group realized positive operating cash flows of KSh 7.6 Billion and significantly grew its investments in fixed income return assets.
Britam’s 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 KSh0.25 per share, amounting to KSh 630.9 Million, was paid out.
All eyes shift to Britam planned layoff of its top managers, a strategy that was made public in March this year, as the firm attempts to steady itself.
ALSO READ: Britam Holdings Issues Profit Warning for 2020
