Britam Records a 79 p.c Drop in their Half Year Results

Britam Holdings’ has recorded a profit before tax of 1.3 billion shillings which is a 78.89 percent drop from last years’ 1.78 billion shillings at the same period.

The firm’s total income recorded a 16 percent growth closing at 14.7 billion shillings compared to last year’s 12.7 billion shillings

The company’s core insurance business projected a 10 percent growth to 9.7 billion shillings compared to 8.9 billion shillings recorded in June 2016.

Embedded Value (EV) as at June 2017 had grown had grown by 20 percent from December 2016 to close at 13.3 billion shillings with a return on EV at 19.9 percent compared to a return of 7.2 percent last year.

Investment income increased by 15 percent from 2.1 billion shillings in June 2016 to 2.5 billion shillings.

The net insurance benefits increased by 85 percent to 6.7 billion with the main driver being the change from the previously Net Premium Valuation (NPV) to the current Gross Premium Valuation (GPV) methodology. This change has been stated to have reduced the 2016 numbers by 2.2 billion shillings.

Operating expenses grew at a slower pace of 10.48 percent to 3.90 billion shillings compared to a growth of 27.60 percent in the January-June period of 2016.

“We have started to realize gains from the implementation of the new (Go for Gold” 2016 – 2020) strategy, through the automation of key processes across all our business lines in life Assurance, general insurance, and asset management,” said the group Managing Director Benson Wairegi.

The Group asset base increased to 90 .6 billion shillings from 83.6 billion shillings in December 2016.