Britam profit soars to Sh1.6bn on revenue jump

By Victor MUJIDU

Britam Holdings’ net profit for the half year ended June quadrupled to Sh1.64 billion on increased insurance revenue and growth in interest and dividend income.

The Sh1.64 billion half-year net earnings is nearly the same as the Sh1.69 billion that the Nairobi Securities Exchange-listed firm posted in the full year ending December 2022.

The life business’s revenue grew 32 percent to Sh5.23 billion while the general insurance business in Kenya saw a 41 percent growth in revenue to Sh6.95 billion.

General insurance revenue from businesses outside Kenya grew by 27 percent to Sh4.42 billion.
Britam CEO Tom Gitogo said the rise in insurance revenue was driven by new business in Kenya and the region, especially in the corporate segment.

We have focused on areas that were previously underserved, including the youth and people at the bottom of the pyramid. Using technology, we have been able to tap into this space and also drive organic growth in areas we already serve,” said Mr Gitogo.

Britam appointed former CIC Insurance boss Gitogo as its new managing director, marking a return to the firm he once served as finance director.

He took over from the then acting MD Charles Njuguna in September last year. Mr Njuguna, the finance director, took over from Tavaziva Madzinga in April, following his exit after just 10 months in office.

The insurer now has a team of 11 managers from the previous 19, having scrapped several positions, including the principal executive director, chief of staff, group chief operating officer, actuary and product development manager, commercial director and Britam asset management unit.

Former PwC head Kuria Muchiru was appointed Insurance Group Britam Holdings chairman, replacing Mr Karama.

The firm also benefited from the reduced fair value losses from equities and government securities from Sh2.3 billion to Sh1.8 billion.

Insurance service expenses were flat at Sh11.84 billion compared with Sh11.4 billion the previous comparable period, helping the net insurance service revenue to rise to Sh1.92 billion from Sh113 million.

Interest and dividend income grew by 26.8 percent to Sh6.8 billion while income from investment property improved by 80 percent to Sh284 million to reflect increased rent collections as occupancy of its properties rose.