NAIROBI, Kenya, Apr 29- Britam Holdings has reported a net loss of Sh9.1 billion for the financial year ended December 2020.
The insurer through a statement attributed the massive loss to poor returns from investments in its associates Housing Finance Group and losses in Wealth Management Fund LLP.
“The results were further depressed by a provision for investment losses of Sh5.2 billion in Wealth Management Fund LLP, a fund managed by Britam Asset Managers which is a fully owned subsidiary of the Britam Holdings PLC,” reads the statement.
“The holdings company is committed to supporting the fund to fulfill its obligations as they fall due through management oversight of the Fund’s operation and the agreed recovery plan,” the NSE listed firm added.
However, the group’s operating results were better than in 2019, where the Gross Earned Premiums and Fund Management fees were up by 4.2 percent to Sh28.8 billion compared to Sh27.7 billion it recorded in 2019.
The group’s operating costs also declined by 6.4 percent attributable to prudent cost control measures.
The insurer also reported that its balance sheet size grew by 9.4 percent to record Sh137 billion while assets management closed at Sh250 billion.
The announcement of the results come after Britam Holdings made major changes at the management levels that saw the appointment of Tavaziva Madzinga, a Zimbabwean as the new Chief Executive Officer effective February 1, 2021.
Madziga replaced Benson Wairegi who had been at the helm of the company for 40 years.
In March, the firm also announced that it was also laying off staff through the Voluntary Early Retirement program, where the process is to be complete by May 31, 2021.
Britam also said that it is also in the process of finalizing the 2021-2025 strategy which will result in a more competitive, efficient and customer-centric organization.
The board did not recommend payment of dividends for the financial year ended December 2020.