Insurance firm linked to Kenya’s Peter Munga achieves $11.2 million in H1 profit

Britam Holdings, an insurance group linked to Kenyan multimillionaire businessman Peter Munga, has announced stellar financial results for the first half of 2023, reporting a remarkable profit surge exceeding $11 million despite the challenging macroeconomic climate.

According to figures in the company’s half-year financial report, Britam’s profit for the first half of 2023 soared by more than 330 percent, surging from Ksh377.9 million ($2.6 million) in the same period of 2022 to an impressive Ksh1.64 billion ($11.24 million). This substantial growth has been primarily attributed to an upswing in insurance revenue and investment income.

The surge in earnings, occurring in the third year of Britam’s customer-focused transformational strategy, validates the efficacy of the company’s execution plan as it continues to experience robust revenue growth and enhanced financial stability.

During the six-month period, insurance revenue witnessed a substantial 34-percent increase, rising to Ksh16.6 billion ($113.8 million) compared to Ksh12.4 billion ($85 million) during the corresponding period in 2022. Britam’s international general insurance businesses have contributed to the group’s overall revenues and profitability, accounting for 27 percent of the total insurance revenue.

Moreover, interest and dividend income demonstrated a noteworthy 27-percent growth, reaching Ksh6.8 billion ($46.6 million) compared to Ksh5.4 billion ($37 million) reported during the same period in 2022. This growth can be attributed to increased revenues and the ongoing optimization of the investment portfolio to enhance yields.

Britam Holdings operates across multiple countries, including Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi. The firm offers a comprehensive suite of financial services encompassing insurance, asset management, banking, and real estate.

The company’s ability to adapt and thrive in diverse markets has solidified its reputation as an industry leader. Notably, Munga, a renowned Kenyan businessman and non-executive director at Britam, owns a significant stake in the company, with 72 million shares, making him one of its largest shareholders.

With an impressive roster of Kenya’s wealthiest investors, including Munga, Jimnah Mbaru, James Mwangi, and Benson Wairegi, Britam took proactive steps in 2022, making a payment of Ksh6.3 billion ($45.2 million) to its asset management arm, Britam Wealth Management LLP, to absorb investment losses from previous years, as revealed in the company’s 2022 annual report.

This proactive measure underscores the company’s commitment to addressing losses and safeguarding the interests of investors with portfolios managed by the asset manager. It serves as a testament to Britam’s dedication to preserving its brand and maintaining its position as a major player in various sectors.