Britam Holdings shareholders will receive Sh630.9 million as dividends after the firm emerged from a loss to post all time high net profit.
The board has recommended a dividend of Sh0.25 per share, ending the previous year’s payout freeze due to losses.
The diversified investment firm last paid a dividend in 2017 coming at Sh0.35 per share or a total of Sh756.911 million.
The latest payout will see top shareholder AfricInvest III get Sh110.7 million for its 17.55 stake.
Equity Holdings, which is associated with businessman Peter Munga will get Sh101.3 million for its stake of 16.05 percent.
Top individual shareholder Jimnah Mbaru is set for Sh48.7 million payout.
Britam emerged from a loss of Sh2.21 billion to post all time high net profit of Sh3.54 billion last year. The last time it posted a net profit close to this was in 2010 at Sh2.71 billion.
The growth was on account increased insurance revenue and appreciation in value of financial assets such as shares on the Nairobi bourse.
Gains on financial assets improved significantly to Sh4.78 billion in contrast with previous year’s loss of Sh3.05 billion. This was a key driver in the strong bottom-line.
Britam’s financial assets include shares listed at the Nairobi Securities Exchange (NSE), unquoted ordinary shares, government securities, corporate bonds, unit trust and investment in property funds.
The value of investment assets such as stocks, bonds and real estate, collectively rose by Sh22.9 billion or 27 percent to Sh107.8 billion.
Last year, the NSE market capitalisation was up 21.44 per cent or Sh400 billion to hit Sh2.5 trillion, meaning that the value of shares was on a rise.
Britam will be under pressure to maintain the performance, with Mr Wairegi saying that 2020 is presenting a challenging business environment.
“There are a number of key global and regional risks that affect the group including Covid-19, locusts’ invasion and a decline in the stock market performance,” said Mr Wairegi.
“We are optimistic that there will be concerted effort to mitigate effects of these adverse developments to the economies and the world at large.”