Britam Records a Net Loss of Kes 9.1 Billion for FY2020
Britam Holdings Plc has reported a net loss of Kes 9.1 billion for the financial period ended 31st December 2020, a 62% loss compared to the Kes 3.5 billion that was reported during the same period in the previous year.
The group attributed the loss to the poor returns from investments in its associate Housing Finance Group, which contributed to a share of loss at Kes 823 million and a reduction in the value of the group’s investment by Kess 603 million.
Additionally, investment losses in Wealth Management Fund LLP, a fund managed by its subsidiary Britam Asset also contributed to the depressed results recording a loss of Kes 5.2 billion.
Britam Holdings Plc reported a pre-tax loss of Kes 9.7 billion a 53% decline compared to a pre-tax profit of Kes 4.6 billion recorded in 2019. Of this loss, Kes 2.3 billion was related to a fair valuation loss due to poor equities performance and Kes 2.0 billion related to property impairments.
However, the operating results in the group recorded an improvement with Gross Earned Premiums (GEP) and Fund Management Fees gaining 4.2% to kes 28.8 billion during the financial period ended 31st December 2020 as compared to Kes 27.7 billion that was recorded in 2019.
This improvement was attributed to the growth of their insurance revenues, especially the international general Insurance business, which recorded an increase in GEP of 50 % hence contributing 28 % of the Group’s GEP.
The Group’s total underlying operating costs also declined by 6.4%, attributable to prudent cost control measures.
Britam’s Balance Sheet stood at Kes 137 billion for the financial period ended 31st December 2020, a 9.4% growth from Kes 125 billion that was recorded during the same period in 2019.
Britam Plc Outlook
The Group has expressed optimism in 2021, saying it is finalizing the 2021-2025 strategy following the end of the 2016-2020 strategy. It also plans to complete and commence execution of the Customer-Centric 2021-2025 transformation Strategy.
The Board of Directors did not recommend the payment of a dividend.
Read also: Britam Holdings to Sell HF Stake.