Listed financial services firm Britam Holdings has reported a 1.4% drop in profit after tax to Ksh 981 million attributed to a 13% increase in insurance claims and an 11% increase in operating expenses to Ksh 4.3 million.
Gross earned premiums grew by 10.5% to Ksh 12.9 billion from Ksh 11.7 billion in 2017 while investment income rose by 37%.
Interest payments rose by 178% to Ksh 1.42 Billion on the back of of the Britam term note issued in 2014.
“The poor performance registered in the group’s associates (95.6% nose-dive to Ksh 3.4M) further exacerbated the situation exerting negative pressure on the bottom-line. Rejuvenated business activity in Kenya coupled with the positive growth in regional economies projected in FY18 is expected to boost the Group’s top-line growth going forward.” Gift Kori, a research Analyst Apex Africa Capital noted.
The invest firm is looking to pay off early holders of the Ksh 6 billion bond while its balance sheet remains good. The 5-year corporate bond was issued in 2014, with a 13% fixed interest rate payable semi-annually and was due for redemption in June 2019.