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Nairobi-based insurance group Britam Holdings, backed by leading Kenyan tycoons Jimnah Mbaru, Peter Munga, James Mwangi, and Jane Wanjiru Michuki, saw its net profit surge to Ksh3.2 billion ($24.13 million) in fiscal 2023, doubling from the prior year’s Ksh1.6 billion ($12.07 million).
The Nairobi-based company’s profit leap was driven by a 60.87-percent increase in net insurance revenue, reaching Ksh3.7 billion ($27.90 million) from Ksh2.3 billion ($17.35 million) a year earlier. The rise stemmed from stronger underwriting performance, while cost-cutting measures, including reduced finance expenses on insurance contracts, also contributed to the improved bottom line.
Britam’s net investment income edges up
During the year, Britam also saw a modest 2.6-percent increase in net investment income to Ksh11.61 billion ($87.56 million), up from Ksh11.32 billion ($85.37 million) on the back of improved interest and dividend income. Notably, net insurance and finance expenses edged down 5.6 percent to Ksh8.5 billion ($64.10 million) from Ksh9 billion ($67.87 million) in the prior year.
Mirroring the improved financial performance, Britam’s fund management fees and other income grew, offsetting operating expense expansion. Total assets surged to Ksh174.4 billion ($1.31 billion) from Ksh152.9 billion ($1.15 billion), while total equity rose to Ksh25.6 billion ($193.07 million) from Ksh22.2 billion ($167.42 million).
East Africa insurance group maintains strong performance, withholds dividend
Britam Holdings, a dominant player in East and Southern African insurance and financial services, boasts a diversified portfolio spanning insurance, asset management, banking, and real estate.
Key shareholders, including prominent Kenyan business figures like Mbaru, Munga, Mwangi, and Michuki, lend further credence to the company’s standing. However, despite strong financials, Britam’s Board of Directors withheld dividend recommendations for the fiscal year ending Dec. 31, 2023.
The 2023 financial year marks the third year of Britam’s five-year strategic plan (2021-2025) focused on enhancing customer value and experience, expanding the client base for growth, and driving operational efficiencies to improve returns.
