This archive report was first published on 20 August 2020.
Britam Holdings Plc, a diversified financial services firm listed at the Nairobi Securities Exchange, has posted a net loss of KSh 1.6 Billion in the first six months of 2020, a significant decline from the KSh 1.7 Billion net profit recorded in the same period in 2019.
The firm's pre-tax loss stood at KSh 2.3 billion in the first half of 2020, compared to a profit before tax of KSh 2.4 billion in the same period last year.
Britam attributes its poor financial performance to the adverse impact of the coronavirus pandemic on its business, particularly its equity and property investments.
The firm's Board of Directors stated that it suffered losses estimated at KSh 3.1 Billion due to depressed activity at the Nairobi Securities Exchange and investors taking flight to safer fixed-income securities.
Additionally, a subdued property market led to property revaluation losses of KShs 929 Million due to low occupancy levels and poor rental yields on its properties.
However, the firm's operating results remained resilient, with gross earned revenue increasing by 9 per cent to KSh 13.8 billion in the first six months of 2020, driven by the growth of insurance revenue, particularly the international general insurance business.
The Group's life assurance business embedded value as at 30 June 2020 was KSh 17.0 billion, with an annualized return of 9%.
The Group's Balance Sheet grew to KSh 128.5 billion, representing a growth of 3%.
