Britam posts 23pc jump in 2014 after-tax profit

Financial services group British-American Investments Company Limited (Britam) has announced an after tax profit of Sh2.8 billion for the year ended December 31 2014, up 23 per cent from Sh2.3 billion the previous year.

Pre-tax profit growth was up 19.5 per cent to Sh3.7 billion, with gross earned premium and fund management fee income growing 55.8 per cent.

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

Britam posted a comprehensive income of Sh6.4 billion, up from Sh3.7 billion in 2013, representing a 74.3 per cent increase. Revenue for the insurance business was up 59 per cent to Sh14 billion.

“Regional subsidiaries contribution to revenue grew by 436 per cent to Sh1.6 billion from Sh294 million,” the group said in a statement.

Speaking during an investors’ briefing, Britam’s MD said the group had managed to sustain the high performance achieved over the last few years.

“We have our eyes on Africa,” Dr Wairegi said. “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.”

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

Their year was also marked by a successful Sh6 billion corporate bond.

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