Britam Holdings Plc, a prominent integrated financial services firm in East Africa, has unveiled its impressive financial performance for the fiscal year ending December 31, 2023. Notably, the company reported a remarkable 65% surge in profit before tax, reaching Sh4.82 billion compared to Sh2.9 billion in the preceding year.
Steadfast Balance Sheet:
Britam’s balance sheet remains robust, with total equity escalating to Sh25.6 billion from Sh22.2 billion, underscoring a fortified financial stance and the capacity to navigate economic uncertainties effectively.
Impressive Revenue Growth:
Britam’s insurance revenue witnessed a striking 41% increase to Sh36.4 billion from Sh25.8 billion in 2022. This surge was mainly propelled by the stellar performance of both Kenyan insurance ventures and the broader regional insurance business, contributing 29% to the total insurance revenue. Furthermore, interest and dividend income saw a substantial 20% rise to Sh15.6 billion, driven by revenue expansion initiatives and strategic portfolio adjustments aimed at securing higher and more stable yields.
Strategic Vision:
Tom Gitogo, Group MD & CEO, expressed confidence in Britam’s growth trajectory, citing the instrumental role played by its subsidiaries in Kenya and the wider region. The company maintains a steadfast focus on revenue growth while vigilantly managing operating costs. Gitogo highlighted Britam’s commitment to customer-centric transformation, which has bolstered its customer base and product adoption, particularly through digital platforms and partnerships targeting emerging market segments.
Navigating Challenges and Embracing Opportunities:
Despite challenges posed by fair value losses on investments due to rising yields, Britam remains resolute in capitalizing on growth prospects across its operational footprint. Leveraging its strong brand identity, the company aims to drive financial literacy, innovate within the underexplored insurance market, and capitalize on growth opportunities throughout the region.
Remarkable Profitability:
Amidst a challenging economic landscape, Britam exhibited substantial growth across key performance metrics, showcasing resilience and robust performance. This notable achievement can be attributed to effective cost management strategies and augmented revenue streams from insurance and investment activities. However, the company experienced a doubling of fair value losses on fixed-income securities, totaling Sh4.6 billion, primarily due to the prevailing rise in interest rates.
IFRS 17 Implementation:
Britam successfully implemented the new accounting standard, IFRS 17, effective January 1, 2023, ensuring adherence to compliance standards and transparency in financial reporting. The associated adjustments from this implementation have minimal impact on the company’s strategic direction, operational efficiency, cash flow generation, solvency, or dividend policy.
Dividend Policy:
The Board of Directors opted not to recommend a dividend payout for the fiscal year ending December 31, 2023, aligning with the company’s strategic priorities and financial considerations.
