Listed diversified financial services firm Britam has posted an 18 per cent rise in pre-tax profit to hit Ksh2.8 billion for the six months ending June 30, 2024.
The strong performance, up from Ksh2.4 billion during a similar period in 2023, is attributed to top-line revenue growth from insurance and investment activities.
The Group’s insurance revenue rose to Ksh17.8 billion, reflecting 7 percent increase from Ksh16.6 billion during the same period in the previous financial year. This growth is driven by continued expansion in the Kenyan insurance business and the regional general insurance business.
During the period under review, the Kenyan insurance operations delivered insurance revenue of Ksh12.5 billion, while the regional insurance businesses contributed Ksh5.3 billion, being 30% of the total insurance revenue and remained a key pillar of the Group’s geographical diversification strategy.
Britam’s insurance businesses recorded improved underwriting performance, boosted by profitable top-line growth, the continued strong performance of the life insurance arm, and efficient claims management.
The Group’s investment income grew 150 per cent to Ksh13.3 billion, up from Ksh5.3 billion in the same period in 2023. This growth was on the back of the ongoing realignment of the Group’s investment portfolio, aimed at enhancing and stabilizing yields.
Operational efficiency remained a key focus for Britam, with the Group maintaining its underlying operating expenses ratio at 30 percent for the six-month period, consistent with the same period in 2023.
The review period falls within the second last year of Britam’s five-year strategic plan, spanning 2021 to 2025. The positive results continue to show the effectiveness of the Group’s customer- centric strategy. This strategy prioritizes enhancing customer value and experience, expanding the customer base to drive growth, and optimizing operational efficiency to generate better returns.
Commenting on the Group’s financial performance, Britam Group Managing Director and CEO, Mr. Tom Gitogo, said: “We are confident in the growth and performance trend that Britam has achieved, supported by its subsidiaries in Kenya and the region. Our business is expanding its revenue base while effectively managing costs.”
“Our customer-centric approach is fueling growth in our customer base and product uptake, particularly through microinsurance, partnerships, and digital channels,” added Mr. Gitogo. Leveraging its strong brand, Britam remains focused on capitalizing on growth opportunities within its chosen markets, capitalizing on the low penetration of insurance products and increasing financial literacy in the region.
“Looking ahead, we remain committed to driving sustainable growth and enhancing shareholder value through the continued execution of our strategic roadmap, as well as looking at expansion within Africa.” said Mr. Gitogo.
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