Britam Holdings, a diversified financial services company, reported that net earnings for 2023 surged by 97.4%, reaching Sh3.2 billion from Sh1.6 billion.
The improved performance was attributable to top-line revenue growth from insurance and investment activities, which cushioned the business from fair value losses incurred from fixed-income securities.
Britam’s net revenue from insurance jumped 60.8%, reaching Sh3.7 billion from Sh2.3 billion in 2022.
The company successfully reduced its operating expenses, with a notable decrease in finance costs associated with insurance contracts.
“Our strong performance is primarily driven by increased insurance revenue,” said Britam’s Group Finance Director, Charles Kimani. “We’ve managed to maintain our operating expenses despite inflationary pressures and currency fluctuations.”
Britam’s net investment income increased modestly by 2.6%, reaching Sh11.6 billion from Sh11.3 billion in 2022. This rise is attributed to improved earnings from interest and dividends.
Expense Management and Growth in Other Areas
The company slightly decreased net insurance and finance expenses, down 5.6% to Sh8.5 billion from Sh9 billion previously.
Britam also saw an increase in fund management fees and other income streams, which helped offset growth in other operating expenses.
Britam’s total assets grew to Sh174.4 billion from Sh152.9 billion in 2022. Similarly, total equity improved to Sh25.6 billion from Sh22.2 billion a year earlier.
Britam plans to focus on microinsurance penetration as a core growth pillar.
Tom Gitogo, Britam’s Group Managing Director and CEO, said, “With a leading 43% market share in microinsurance, we’ll continue to invest in this area through internal initiatives and partnerships. We also remain committed to expanding our existing markets, aiming to increase insurance accessibility and availability for all.”