[Kenya] Britam’s comprehensive income grows by to $19 million
Britam Holdings Plc total comprehensive income grew by 143 % to Shs 1. 9 billion in 2017, up from Shs 784.7 million in 2016.
The Group’s total income grew by 24% to Shs 27.8 billion, from Shs 22.4 billion in 2016, attributed to a 15% increase in gross earned premium to Shs 23.3 billion and a strong performance in equities.
Following the release of the 2017 full year financial results, the group’s shareholders will earn Shs 756 million in dividends. The company’s board of directors has recommended a final payout of 35 cents per share, a 17 % increase compared to the previous year. The payout is subject to approval by shareholders in the AGM.
However, the Group’s profit before tax declined to Shs 865.8 million compared to Shs 4.2 billion reported in 2016.
The decline in profits is attributable to a change in valuation method for long term liabilities to gross premium valuation method from the previously applied net premium valuation method in compliance with provisions of the Insurance Act as amended by the Finance Act 2015. This one-off change impacted the 2016 earnings positively by Shs 5.2 billion.
The asset management business recorded strong performance, with Assets under Management (AUM) growing by 18% from Shs 108.9 billion in 2016 to Shs 128.9 billion in 2017.
The Group’s total assets grew by 18% to Shs 99 billion up from Shs 84 billion the previous year, while shareholders’ funds increased by 27% on the back of a strong performance and issuance of new shares to International Finance Corporation (IFC) during the year.
The business reported a profit before tax of Shs 473 million compared to Shs 4.5 billion in 2016, while revenues grew by 26% to Shs 11.1 billion from Shs 8.8 billion in 2016.
The general insurance business reported a profit before tax of Shs 545 million compared to Shs 631 million in 2016, with revenues growing by 3% to Shs 8.1 billion from Shs 7.8 billion in 2016
The international businesses grew in both profits and revenues, and accounted for 13% of the net insurance business revenue, 13% of total income and 8 % of the assets of the Group in 2017. Total revenues grew by 12% to Shs 4.1 billion from Shs 3.5 billion in 2016.
Speaking during the release of the results, Group Managing Director Dr Benson Wairegi said the business achieved tremendous growth despite the difficult business operating environment occasioned by the prolonged electioneering period and drought.
“The fundamentals of the group remain strong. Our focus for the year will be to provide our customers with a seamless experience and peace of mind by delivering a “one-stop” shop for financial services across all channels through our Single distribution model,”
Dr Wairegi said that the group was on course in the implementation of its 2016-2020 strategy that will help propel the company to the next phase of growth. Dubbed “Go for Gold”, the strategy is anchored on five strategic pillars of enabling transformation, operational excellence, customer service, Innovation, and Profitable growth.
He said some of the milestones achieved by the group last year include the launching of a 24hour Customer Contact Centre, launching digital channels such as the Financial Advisors (FA), Customer and Marine insurance Portals;
The company also unveiled several mobile based products which will be marketed through the digital channels. These products are expected to boost revenues for the respective businesses.