Financial services group Britam has reported a full year 2016 has bounced back to post a pre-tax profit of Sh 4.2 Billion versus a net loss of Sh 1.2 Billion posted in 2015.
Net earned premiums increased by a slight margin of 6% to Sh 17.4 billion compared to Sh 16.4 billion in 2015 while interest and dividend income grew by 35% to Ksh 4.2 Billion as total income grew by 11% to Ksh 22.36 Billion.
Profit After Tax was at Ksh 2.5 Billion from a loss after tax of Ksh 1.0 Billion in 20115.
Total expenses declined by 15% to Ksh 18.5 Billion on the back of 53% decline in net insurance benefits and claims. The decline in net insurance benefits and claims coupled with growth in total income supported earnings growth.
Fund management fee grew from Ksh 718 Million in the previous year to Ksh 929 Million while investment income from its real estate portfolio declined from Ksh 1.2 Billion to Ksh 991 Million.
The company retained a Dividend Per Share Of Ksh 0.30, same as the previous year.
Meanwhile, Britam Shareholders on Friday approved acquisition of 10. 37 percent stake in the Company by the International Finance Corporation (IFC).
IFC will inject Ksh 3.55 billion to buy 224,187,697 million ordinary shares of Britam at 15.85 shillings per share, as a result, the issued share of capital of Britam will increase by 11.6 percent.
