Britam increases income but profits fall

Kenyan insurer Britam Holdings has reported that its total comprehensive income for the first six months of the year has increased to KSh1.9bn, compared to KSh1.88bn for a similar period last year. The pre-tax profit was KSh1.3bn, which is reported to be a 78.89% drop from last year’s KSh1.78bn in the same period. Britam said insurance business, which accounts for 66% of the group’s total revenues, remained the key driver of business, registering 10% growth of KSh9.7bn compared to KSh8.9bn during the same period last year. Investment income increased by 15%, from KSh2.1bn in 2016 to KSh2.2bn as at 30 June this year. The group’s regional insurance businesses contributed KSh1.2bn in revenues, accounting for 13% of net earned premiums, 12% of total income and 6% of the total assets of the group. The total assets of the group increased to KSh90.6bn, up from KSh83.6bn as at 31 December 2016. Within this period, the group successfully rolled out an asset management company in Uganda, the first in the region outside Kenya. Britam group managing director, Dr Benson Wairegi, said the company has made significant progress on key strategic objectives outlined in the company’s ‘Go for Gold’ 2016 – 2020 strategy. “We have started to realise gains from the implementation of the new strategy, through the automation of key processes across all our business lines in life assurance, general insurance, and asset management,” Dr Wairegi said. Dr Wairegi said the successful implementation of the single distribution model, where the company’s financial advisers are now cross-selling and up-selling insurance and investment products, had optimised operational synergies across all branch networks in the company, leading to an increase in the group’s revenues. He said the group has invested heavily in IT and successfully rolled out digital distribution channels for some key products, such as the Money Market Fund, which is a unit trust, and Imarika, a Unit-linked investment policy that offers investment and life insurance protection cover. “As a result, we have witnessed growth in the general insurance business, which has seen the company increase its market share in the country to position three from number five last year,” Dr Wairegi said. The general insurance business had also unveiled a highly specialised motor assessment centre, which improves service to customers while allowing for fast assessment and processing of motor vehicle claims. There are also plans to roll out a 24-hour customer service centre to respond to the growing needs of the customers and also enhance the customer experience. He said the group has continued to implement its property strategy, with the construction of its flagship project, the 31-Storey Britam Tower, now complete and awaiting occupation. Construction of the KSh3.3bn serviced apartments in Kilimani, set to be completed in 2019, is on course. The decision to venture into property and real estate development is part of the group’s diversification strategy, meant to reduce portfolio risk and exposure to the volatile stock exchange market, while addressing the gap in the real estate market, the company said.

Britam increases income but profits fall

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