Britam Group managing director Benson Wairegi on Monday said the firm had already began to redirect its investments to the fixed asset classes.
Britam also wants to go big in the booming property sector .
The firm will pay an unchanged dividend of Sh0.30 a share.
Britam is investing on government paper and cutting funds at the bearish Nairobi bourse after returning to profitability.
Britam Group managing director Benson Wairegi yesterday said the firm had already begun to redirect its investments to the fixed asset classes, arguing that the move has started paying off.
Britam, which has insurance, asset management and property development businesses, posted a net profit of Sh2.4 billion last year compared to a loss of Sh1 billion in 2015.
“Britam has been reviewing its strategy on the stock market where the Nairobi Securities Exchange (NSE) has experienced a bear run over the last two years….our stock market investments in 2016 decreased from a high of 20s in 2015 to about 13 per cent. So we have reduced the contribution of the proportion of equities in our portfolio,” said Mr Wairegi on the sidelines of an investor briefing.
“We have redirected most of our investments to the fixed income meaning government securities, which are risk free and promise a better return.” The firm will pay an unchanged dividend of Sh0.30 a share.
Britam’s fixed income portfolio grew by 26 per cent to stand at Sh25 billion last year from Sh19.8 billion in 2015.
Investments on Equities at NSE dropped from Sh23.2 billion to Sh18.1 billion in the period under review.
Britam also wants to go big in the booming property sector and further reduce its reliance on insurance business and the NSE.
The firm will in coming weeks start leasing space at the 32-storey Britam Towers, which will be the third tallest building in Africa at 195 metres above the ground.
Britam is working on a mixed use property development in Kileleshwa, serviced apartments in Kilimani and Hurlingham, Mlolongo residential development and Ngong Township mixed use development all estimated to cost Sh23 billion.
Real estate has become one of the fastest growing sectors over the last decade, fuelled by a burgeoning middle class.
Returns on investment in real estate have outpaced those of equities and government securities.
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