Britam sustains profit run, posts 19.5% growth

Diversified financial services group, British-American Investments Company Limited (Britam) has announced a 19.5% pretax profit growth in its 2014 Full Year results released today.

The group registered profit before tax of Kshs 3.7 billion up from Kshs 3.1 billion posted in 2013. Buoyed by the successful implementation of the group strategy which focus on regionalization, diversification of product portfolio and operational efficiencies, Britam posted a comprehensive income of Kshs 6.4 billion up from Kshs 3.7 billion in 2013; representing a 74.3%.

Within the year, gross earned premium and fund management fee income grew favourably, posting a 55.8% growth.

Revenue for the insurance business in the Group of Kshs 14.0 billion compared to Kshs 8.8 billion, a growth of 58.8%.

Regional subsidiaries contribution to revenue grew by 436.0% to Kshs 1.6 billion from Kshs 294.0 million attributable to organic growth and business acquisition. They also contributed Kshs 105 million to profit after tax.

Revenues from the asset management business for the year grew by 13.5% to Kshs 696.1 million from Kshs 613.5 million posted in 2013.

Group assets grew by 55.6% to stand at KShs 73.0 billion from Kshs 46.9 billion in 2013, while off balance sheet assets under management (AUM) recorded a 50.3% growth to KShs 54.5 billion from Kshs 36.3 billion in 2013.

Speaking during an investors’ briefing, Britam Group Managing Director Dr. Benson Wairegi said the group had managed to sustain the high performance achieved over the last few years.

“The key drivers for Britam’s growth were hinged on new business opportunities in regional growth and expansion, strategic partnerships, new product offerings, real estate investment, and opportunities in the county governments,” Dr Wairegi explained.

“Our growth and diversification strategy remains firmly on course. We have our eyes on Africa. Our focus for investment is in Information Technology, mergers and acquisitions, as well as regional expansion. Our goal is to support the continent’s economic take off through provision of a wide range of financial products and services,” Dr. Wairegi said.

Britam is listed on the Nairobi Securities Exchange and currently has operations in Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique and Malawi. The firm has successfully concluded its acquisition of Real Insurance Company, effectively increasing its regional footprint to seven African countries.

The year was also marked by a hugely successful Ksh 6.0 billion corporate bond that achieved a 247% subscription rate, indicating a vote of confidence in the firm by investors.

Following the results, the firm has recommended a dividend payout of 30 cents per share up from the 25 cents paid in 2013.

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