Britam Holdings has posted Kes 376.3 million net profit in six months to June, marking a recovery from the Kes 1.63 billion net loss posted in a similar period last year. The return into profits was attributed to growth in investment income and a rise in the value of shares at the Nairobi Securities Exchange (NSE).
Net revenue in the financial services company rose 2.4 % to Kes 11.97 billion during the half-year period from Kes 11.68 recorded during the same period in 2020.
Investment income rose 35 % to Kes 4.96 billion, offering support to the bottom line, with the regional businesses contributing 24 % of the Group’s gross earned premiums. Consequently, the Group’s gross earned premiums and fund management fees were up by 5.7 % to Kes 14.9 billion.
“The improved performance is attributed to growth in premiums from new business and investment income from its broad investment portfolio,” Britam Holdings in their financial release.
The worth of its investment in equities at the NSE posted a Kes 1.37 billion gain in the six months period ended 30th June 2021, compared to a loss of Kes 3.22 billion recorded during a similar period in the previous year. The group attributed the performance of the investments in listed equities to their better performance at the NSE in the period.
However, operating expenses in the group recorded a 25% increase to Kes 4.90 billion during the period, mainly driven by increased claims payments, interest payments, and restructuring costs.
During the half-year period, total assets in the group stood at kes146.86 billion, a 7 % rise compared to the kes 136.96 billion posted in 2020.
Britam Holdings Outlook and Dividend
Britam expressed optimism in their performance in 2021, citing an improved operating environment due to the gradual reopening of the economy.
” The group remains optimistic of sustaining profitability in 2021 on the back of an improving operating environment. In the short term, we will however continue to pursue prudent cost management initiatives and maintain a stable solvency position. The business fundamentals remain strong with both the Group’s assets and shareholders’ funds growing in the period.” Britam’s Managing Director, Tavaziva Madzinga.
The board of directors did not recommend the payment of an interim dividend.