Britam’s Profit Up 193% to Sh2.3B on Increased Revenue

Britam Holdings posted a 193 percent pre-tax profit of Sh2.38 billion for the half-year period ending June 30, 2023, nearly triple the Sh812 million achieved the previous year.

Britam’s Group Managing Director and CEO, Tom Gitogo, attributed the performance to a 31% increase in total earned premiums and fund management fees to Sh20.7 billion.

In the fiscal year under review, insurance services revenue increased by 34% to Sh16.6 billion, while interest, dividend, and rent income increased by 28% to Sh7.1 billion.

“We are confident of the growth and performance trend that Britam has achieved, supported by its subsidiaries in Kenya and in the region. The business continues to grow its revenues while operating costs grow at a lower rate than the topline growth,” Gitogo said.

The regional general insurance businesses provide 23% of the group’s gross earned premiums. Gitogo stated that as of June 30, 2023, total shareholders’ equity had increased by 10% to Sh23.5 billion, demonstrating better results.

He stated that with slightly more than two years left in the 2021-2025 strategic plan, Britam’s excellent trajectory in operational and financial performance makes the business hopeful about completely realizing the strategic goals that were set.

“This is expected to unlock the group’s potential and deliver value to its shareholders and all its key stakeholders,” Gitogo said.

However, the board of directors did not suggest paying an interim dividend for the half-year period.

Britam Holdings reported its first profit from property investments in four years when the occupancy of its 32-story Upper Hill tower reached 94 percent.

Britam’s net profit from investment property reached Sh643 million in the fiscal year ending December 2022, up from a Sh206 loss the previous year, according to the group’s most recent annual report.

The Sh643 million profit, the first since Sh507.2 million in 2018, came during a period when Britam Tower’s occupancy levels increased from 86 percent to 94 percent as economic activity recovered from COVID-19 interruptions.

The ultra-modern tower, located in the upscale Upper Hill area, has a total lettable space of 350,000 square feet with 1,000 parking bays and targets clientele such as diplomatic missions, multinational corporations, private firms, and financial institutions.