Britam Group Holdings has registered a loss of 9.7 billion shillings before tax. In a statement released by the Group, of the losses, 2.3 billion shillings is related to a fair valuation loss due to poor performance of equities.
The company says further 2 billion shillings of the losses were as a result of property impairment. The massive losses come at a time Covid-19 is continuing to impact negatively on businesses across the country.
“The unfavorable operating environment adversely impacted our investment associate, HF Group Plc, contributing to the Group results, a share of loss at 823 million shillings and reduction in the value of this investment by 603 million shillings,” said the Group.
According to Britam, the results were also depressed by the provision for the investment losses of 5.2 billion shillings in Wealth Management Fund LLP, a fund managed by the Britam Asset Managers and one that is fully owned by the Group.
“The Holdings Company is committed to supporting the Fund to fulfill its obligations as they fall due through management oversight of the Fund’s operations and the agreed recovery plan,” the Group added.
The Gross Earned Premiums and the Fund Management Fees were up by 4.2 percent to 28.8 billion shillings from 27.7 billion shillings in 2019 attributed to the growth of insurance revenues.
“The Group has continued to be resilient in its cash-generating ability delivering positive operating cash flows of 7.6 billion shillings and significantly growing its investment in fixed income return assets,” said the Group.