Financial services firm, Britam Holdings has posted a profit before tax of Kshs 647 milion in its half year results for the period ending June 30th, 2021. This is a significant improvement compared to a loss before tax of Kshs 2.3 billion reported during a similar period last year. The improved performance is attributed to growth in premiums from new business and investment income from its broad investment portfolio. The firm also registered significant growth in investment income following re-allocation of its investment portfolio to increase yields. Investment income during the period grew to Kshs. 4.9 billion. This represented a 35 per cent growth compared to a similar period last year.
The group also realized growth in revenue from both its local and regional businesses. The regional businesses contributed 24 per cent of its gross earned premiums. In the same breath, the group’s gross earned premiums and fund management fees went up by 5.7 per cent to Kshs 14.9 billion.Commenting on the results, Britam’s Group Managing Director, Tavaziva Madzinga said: “The group remains optimistic of sustaining profitability in 2021 on the back of an improving operating environment and gains from our new transformative strategy. In the short term, we will however continue to pursue prudent cost management initiatives and maintain a stable solvency position.”
Britam recently completed its transformation process which entailed creating a leaner,agile and more customer centric organization. The transformation exercise is expected to accelerate delivery of its new strategic plan, which focuses on preparing the firm for growth by organizing the business around delighting the customer; leveraging technology; turning around key cost drivers and optimizing the profile and returns of its investments.