Britam Holdings has posted a net profit of Sh 667.5million for the half-year period ending June 30, a 77 per cent jump from Sh376 million posted in a similar period last year, attributed to rising premiums and investment income.
The Group reported Gross Earned Premiums and Fund Management fees of Sh15.8 billion, a 6 per cent growth from Sh14.9 billion recorded in the same six-month period in the previous financial year.
Investment income in the period was Sh6.2 billion, representing a 26.0 per cent growth compared to Sh4.9billion recorded in the previous financial year.
The growth in investment income was driven mainly by the continuing shift of the Group’s investment strategy that has seen the listed financial services firm continue to pursue a re-allocation of its investments portfolio, favouring stabilization and growth of yields.
“We managed to grow revenues by focusing on improving customer experience while leveraging strategic partnerships across different sectors including banks and telcos to drive scale and grow our customer base. We are confident that this strategy will be key in delivering growth across all markets,” Britam Group Chairman Kuria Muchiru.
In line with Britam’s diversification strategy, regional general insurance businesses supported revenue growth and profitability. The regional insurance businesses contributed 23 per cent of the Group’s total gross earned premiums.
The Group’s total operating costs were down 22.0 per cent to Sh3.8 billion in the period.
With continued low insurance penetration in the region, increasing financial literacy and digitalization present emerging opportunities for the firm.
The Board of Directors did not recommend the payment of a dividend for the six-month period ended 30 June 2022.
Read also; Britam Appoints Tom Gitogo as New Managing Director WEF 1st September.