Britam records rise in 2013 profit to Sh3.2bn

March 7, 2014
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Group total income grew to Sh15 billion up from Sh11. 7 billion in the same period, while investment income grew to Sh6.3 billion in 2013 compared to Sh5 billion in 2012/FILE
Group total income grew to Sh15 billion up from Sh11. 7 billion in the same period, while investment income grew to Sh6.3 billion in 2013 compared to Sh5 billion in 2012/FILE
NAIROBI, Kenya, Mar 7 – British- American Investments Company (Britam) has recorded a 12 percent increase in its profit before tax to record Sh3.2 billion for the full year ending December 31, 2013 from Sh2.8 billion posted in the same period in 2012.

Group total income grew to Sh15 billion up from Sh11. 7 billion in the same period, while investment income grew to Sh6.3 billion in 2013 compared to Sh5 billion in 2012.

Total revenues for the group grew by 31 percent to reach Sh9.5 billion from Sh7.2 billion in 2012, buoyed by the positive performance of its life, general and asset management businesses.

Britam’s Group Managing Director Benson Wairegi said the group’s key drivers for growth were hinged on new business opportunities in county governments, new product offerings, real estate investment, regional expansion and strategic partnerships.

“Our strong balance sheet and claims paying ability allows us to maintain our brand integrity and high customer service levels whilst allowing us to competitively respond to market opportunities,” he said.

Wairegi said that as part of Britam’s strategy of aggressively expanding its interest in the lucrative property sector, the group last year acquired a 25 percent stake in Acorn Group, a real estate development and management consultancy firm.

He said going forward, the company expects to increase its property portfolio to between 20-30 percent and reduce reliance on equities to below 30 percent.

The group also acquired 99 percent shareholding in Real Insurance that will enable the diversification of business across several markets in the region and become the largest Pan African insurance company within the East and Central African Region.

Assets under management rose to Sh36.2 billion from Sh28.1 billion.

The insurance business registered a pre-tax profit of Sh2.5 billion from Sh1.5 billion in 2012, a 68 percent growth.

Micro insurance grew to Sh187 million up from Sh132 million in the previous year while General Insurance grew to Sh1.4 billion in 2013 up from Sh1.1 billion, a 34 percent increase.

Ordinary life revenues grew to Sh3.8 billion from Sh2.8 billion in 2012.

Their subsidiary in Uganda grew by 105 percent with the group recently appointing Allan Mafabi as the new Chief Executive Officer for Uganda.

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