This archive report was first published on 24 August 2019.
Britam Holdings, a Nairobi Securities Exchange-listed insurer, has recorded a significant increase in net profit for the first six months of this financial year. According to the company's latest results, net profit jumped by 71 per cent to Sh1.7 billion, up from Sh981 million in the same period last year.
The improvement in net profit was attributed to the company's improved claims management method and a 19 per cent growth of its international insurance business. Net insurance claims, increase in policyholder's benefits, and loss adjustment expenses fell by 12 per cent, from Sh7.5 billion to Sh6.6 billion, during the period under review.
Britam's total income was nearly flat at Sh16.9 billion compared to Sh16.8 billion in the same period last year. The company's total assets increased by one-tenth to Sh114 billion from Sh103 billion as of December 2018.
Group Managing Director Benson Wairegi described the performance as 'excellent' but noted that the property segment of the business had been performing poorly in the past. Wairegi revealed that Britam plans to extend its property offerings to third-party clients through its asset management company and dispose of some of the property in their portfolio.
Britam views property as a long-term investment suitable for investor portfolios as an inflation hedge and is not looking to exit the market. The asset management business posted a 23 per cent increase from a similar period in 2018, closing with assets under management of Sh172.7 billion.
