Britam Holdings Plc, a diversified financial services firm that is also listed at the Nairobi Securities Exchange(NSE) has posted a net loss of KSh 1.6 Billion in the last six months period ended 30th June 2020.
These earnings are compared to a net profit of KSh 1.7 Billion recorded in the first six months of 2019. The group recorded a pre-tax loss of KSh 2.3 billion in H1,2020 compared to a profit before tax of KSh 2.4 billion in the same period last year.
The firm attributes this poor financial performance to the adverse impact of coronavirus on its business. The pandemic has severely hit its equity and property investments.
Britam’s Board of Directors, in a statement, said the firm suffered losses estimated at KSh 3.1 Billion following depressed activity at the Nairobi Securities Exchange(NSE) with investors taking flight to safer fixed-income securities.
A subdued property market also saw Britam suffer property revaluation losses of KShs 929 Million due to low occupancy levels and poor rental yields on its properties.
The Group’s operating results remained resilient. Gross earned revenue was up 9 per cent from KSh12.6 Billion in H1, 2019 to KSh 13.8 billion at the end of the first six months of this year.
This increase is mainly attributed to the continued growth of insurance revenue especially the international general insurance business which recorded a rise in a gross earned premium of 34 per cent, contributing 23 per cent of the Group’s gross earned premium and a profit of KSh 575 million.
The Group’s operating costs have declined by 6 per cent on the back of a 9 per cent revenue growth. This drop in costs is attributed to prudent cost control measures.
The life assurance business embedded value as at 30 June 2020 was KSh 17.0 billion, with an annualized return of 9%.
The Group’s Balance Sheet grew to KSh 128.5 billion, representing a growth of 3%. The Group’s directors have not recommended any payment of an interim dividend.
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