Britam’s pre-tax profit full year 2022 doubles to Kshs2.95Bn

Integrated financial services firm,Britam Holdings Plc, has posted a profit before tax of Kshs 2.95 billion for the full year ending 31 December 2022, almost tripling the Kshs 1.01 billion recorded in the previous financial year ended 31 December 2021.

Key highlights: –

• A sustained growth in revenue with Gross earned premiums and fund management fees up 2.7 percent to Kshs 33.4 billion.

• Strong growth in interest and dividend income which was up 19.6 percent to Kshs 13.0 billion.

• Regional general insurance businesses contribution of 23.0 percent to the Group’s gross earned premiums.

• The Group’s total operating costs were down 26.1 percent to Kshs 8.4 billion.

The improved performance is attributable to a growth in top line revenue as well as operating efficiency and cost management initiatives. This together with improved dividend and interest income helped cushion the significant fair value losses to register improved profitability.

The Group reported Gross Earned Premiums and Fund Management fees of Kshs 33.4 billion, a 2.7 percent growth from Kshs 32.5 billion recorded in the previous financial year. The regional General Insurance businesses continued to support both revenue and profitability and contributed 23 percent of the Group’s total gross earned premiums.

The Group’s interest and dividend income in the year was Kshs 13.0 billion, representing a significant 19.6 percent growth compared to Kshs 10.9 billion recorded in the previous financial year. The growth in investment income continues to be driven by business growth and shifting of the Group’s investment strategy with an increased focus on stabilizing and growing yields from its investment portfolio.

The year under review marks the second year of the Group’s implementation of its five-year strategic plan for the period 2021-2025. The positive outcome achieved during the period is a clear indication that the Group’s customer-centric strategy is yielding significant benefits. This strategy prioritizes the enhancement of customer value and experience, expansion of the customer base to drive growth, and improvement of efficiencies to generate better returns.

Commenting on the Group’s financial performance, Britam’s Group MD & CEO Mr. Tom Gitogo said:

 “We are pleased with the growth trajectory of our business in Kenya and in the region following our focus on improving customer experience and strategic partnerships.”

Adding “The strategy places the right emphasis on efficiencies and cost management initiatives, which are bearing fruit as witnessed by the notable drop in operating expenses.

Britam sees promising growth opportunities in the markets where it operates due to the low penetration of insurance products. The company’s strong talent pool and expertise, combined with the increasing financial literacy, and the increasing digitization, makes it well-positioned to realize these opportunities.

Outlook

The positive outcomes from the 2021-2025 strategy which includes organizing the business around the customer to entrench customer centricity, stabilization and growth of investment returns, and improving cost efficiencies has given us a strong foundation for business growth.

The focus is now on creating value for our customers by offering an enhanced customer experience and innovative solutions that meet their real needs. We are optimistic of a sustained financial performance across the Group’s local and regional businesses in 2023 and beyond.

Dividend

The Board of Directors did not recommend the payment of a dividend for the year ended 31 December 2022.