NAIROBI, Kenya, Mar 26 – Britam Holdings Plc has released its Full year 2017 earnings, reporting a decline in its profit before tax to Sh865.8 million compared to Sh4.2 billion reported in 2016.
The decline has been attributed to a change in valuation method for long-term liabilities to gross premium valuation method from the previously applied net premium valuation method.
The company has posted a 79.4 percent year on year drop in its Earnings per Share to Sh0.26, attributable to a 149.9 percent year on year uptick in net claims to Sh12.49 billion.
Gross earned premiums rose by 15 percent year on year Sh23.3 billion in the period under review.
Life insurance premiums in its Kenyan business rose by 26.3 percent Sh11.1 billion as market share declined 146 basis points year on year to 22.05 percent.
At the same time, general insurance premiums rose by 6.04 percent Sh12.17 billion as market share gained 70 basis points year on year to 6.45 percent.
Life insurance premiums were mostly boosted by income from Life assurance – Sh7.4 billion, Pensions – Sh6.6 billion and Annuities – Sh2.0 billion. General business was boosted mainly by income from Medical Sh2.4 billion, Motor Private Sh1.3 billion and Motor Commercial Sh1.2 billion.
Regional business total Gross Earnings Premiums and fund management fees stood at Sh4.1 billion.
Non-insurance business rose by 51.8 percent year on year to Sh7.5 billion, which was majorly driven by interest and dividend income which was up by 19.4 percent.
The company’s board of directors recommended payment of a first and final dividend of Sh0.35 per share.