BY EURIDICE NZIOKA,NAIROBI,24TH AUG 2017-Britam Holdings has announced a 44 percent reduction in its net profit for the first-half of 2017 from Sh1.7 billion last year to Sh995 million. The reduction is largely to over increased insurance claims.
The group’s regional insurance businesses contributed Shs1.2 billion in revenues, accounting for 13 per cent of net earned premiums, 12 per cent of total income and 6 per cent of the total assets of the group.
The total assets of the group increased to Shs90.6 billion, up from Shs83.6 billion as at 31st December 2016.
Assets Under Management (AUM) by Britam Asset Managers, a subsidiary of the group, grew by 14 per cent from Sh108.9 billion in December 2016 to Sh124.5 billion as at June 2017 while fund management fees increased to Sh11.7 billion compared to Sh11 billion in June 2016.
Within this period, the group rolled out an asset management company in Uganda, the first in the region outside Kenya.
Speaking during the release of the firm’s half-year results, Britam Group Managing Director, Dr Benson Wairegi said the company has made significant progress on key strategic objectives outlined in the company’s “Go for Gold” 2016 – 2020 strategy. “We have started to realize gains from the implementation of the new strategy, through the automation of key processes across all our business lines in life Assurance, general insurance, and asset management,” Dr Wairegi said.
Dr Wairegi added that the successful implementation of the single distribution model where the company’s financial advisors are now cross-selling and up-selling insurance and investment products had optimized operational synergies across all branch networks in the company, leading to an increase in the revenues of the group.