Britam Holdings net profit for the half-year ended June 2026 rose 53.3 percent to Sh2.66 billion, up from Sh1.28billion in a similar period the previous year, helped by increased underwriting performance and reduced expenses.
The profit growth came as the net insurance service result improved 36 percent to Sh1.76 billion from Sh1.29 billion.
A net insurance service result is an accounting measure that shows an insurance company’s core underwriting profitability by subtracting insurance service expenses from insurance revenue.
Britam’s net insurance finance expenses dropped to Sh10.92 billion from Sh15.96 billion, helping the growth in the bottom line. The group has operations in Kenya, Uganda, Rwanda, South Sudan, Tanzania, Malawi and Mozambique.
Britam CEO Tom Gitogo said the overall performance was driven by sustained growth across the Life and General insurance businesses,
“The improvement in the insurance service result is important because it reflects the underlying health of our core business. We will continue to execute with discipline while investing in customer experience, distribution and digital capability to support sustainable growth,” said Mr Gitogo.
During the review period, net investment income declined to Sh13.4 billion from Sh17.3 billion a year earlier, partly reflecting changes in financial asset valuations.
Gains on financial assets at fair value passed through the income statement fell to Sh1.11 billion from Sh6.24 billion, accounting for the bulk of the decline in net investment income.
A declining yield curve hurt the net investment income. Insurers invest premiums in Treasury Bills, Treasury Bonds and other fixed income assets, and therefore when returns on such investments are falling, it results in slowed growth in investment income.
“We expect yields to continue trending downward, supported by positive investor sentiment, improved liquidity and a cautiously dovish monetary policy stance, with the Central Bank of Kenya holding rates in two consecutive meetings,” said Britam.
The latest profit has lifted Britam’s retained earnings to Sh1.85 billion from Sh540.84 million it had in December. The management has been signalling a return to dividends, though no recommendation was made in the half-year.
“The group remains focused on delivering sustainable value for shareholders and other stakeholders through disciplined execution of its strategic priorities and continued operational excellence,” said the firm.
The last dividend payout for Britam came in 2019 when the firm declared a distribution of Sh0.25 per share amounting to Sh631 million, before plunging into a record loss of Sh9.1 billion in 2020.
Britam has been on a recovery path since the record loss that pulled it into an accumulated loss position, making it difficult to pay dividends.
Britam's share price has more than doubled since the start of the year, partly supported by the decision to use part of its share premium of Sh13.2 billion to clear accumulated losses and clear the way for a resumption of dividend payments.
Britam share opened Friday at Sh18.60 a piece, representing a 104.4 percent gain at the Nairobi Securities Exchange since January.
