Insurer and financial services provider Britam has posted a 97.4 percent jump in net earnings for the year ended December 31, 2023 to Sh3.2 billion from Sh1.6 billion previously.
The growth in profitability is largely attributable to increased insurance underwriting and cost cuts, which was marked by a reduction in finance expenses from insurance contracts issued.
Net revenue from insurance was up 60.8 percent to Sh3.7 billion from Sh2.3 billion with income before insurance service expenses and expenses from reinsurance contracts held.
“The main drivers for our performance was insurance revenues while our operating expenses have remained at the same level despite inflation and currency pressures,” noted Britam Group Finance Director Charles Kimani.
At the same time, Britam saw its net investment income rise by 2.6 percent to reach Sh11.6 billion from Sh11.3 billion on improved interest and dividend income.
Net insurance and finance expenses inched downwards, falling by 5.6 percent to Sh8.5 billion from Sh9 billion previously.
Similarly, the regional financial services provider saw an increase in fund management fees and other income to offset growth in other operating expenses.
At the end of the period, Britam saw total assets hit Sh174.4 billion from Sh152.9 billion previously, while total equity improved to Sh25.6 billion from Sh22.2 billion a year prior.
The insurer has not declared a dividend to shareholders as it waits to unwind losses from recent years.
According to Britam Group Managing Director and CEO Tom Gitogo, the insurer will focus on the penetration of microinsurance as one of its core pillars to grow its business over the near to medium term.
“With a 43 percent market share in microinsurance, we will continue to bet on the segment through both internal initiatives and partnerships. We will also continue focusing on our other markets with the goal to drive insurance penetration by fostering accessibility and availability,” he stated.
