Britam Holdings posted a 53.5 percent jump in net profit to a record Sh5.03 billion for the year ended December 2024, marking the fourth straight year of profit growth.
The increase in profitability from the previous year's Sh3.28 billion was supported by a rise in insurance and investment income, particularly from long-term business.
Britam Group chief executive officer Tom Gitogo said the Kenyan operations delivered a pre-tax profit of Sh6.1 billion, while the regional subsidiaries contributed Sh1.2 billion to the group’s pre-tax earnings.
"Britam’s strong performance in 2024 reflects the success of our strategic focus on profitable growth, operational efficiency, and investment optimisation. Our disciplined execution of our strategy continues to drive sustainable value for our shareholders,” Mr Gitogo said.
Britam Group has a presence in seven countries in Africa, namely Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique and Malawi.
Net insurance service result—the net amount of insurance revenue less insurance service expenses—rose by 35 percent to Sh5.07 billion on the back of increased premiums and reduced spending on reinsurance.
Net investment income, which is money received from investments such as government securities, fixed deposits and property, rose 2.6 times to Sh30.59 billion from Sh11.6 billion, making it the largest contributor to Britam’s profit.
The latest profit is the highest ever for Britam, which in 2020 had suffered its worst-ever loss of Sh9.1 billion.
The diversified financial services firm has been on a recovery from the 2020 loss, posting a net profit of Sh72.1 million in 2021 and Sh1.69 billion in 2022. However, the insurer has not declared a dividend on the improved performance.
Britam Life Assurance, the long-term underwriting business subsidiary, saw its net profit rise 2.4 times to Sh3.93 billion from Sh1.64 billion.
However, Britam General Insurance, the subsidiary that offers short-term covers such as motor vehicle and medical, saw its profitability come under pressure. Net profit for this unit retreated by 14.4 percent to Sh1.25 billion from Sh1.46 billion.
The general insurance unit saw a spike in claims, partly due to floods and anti-government protests that contributed to higher claims in lines of business such as property, comprehensive motor insurance and medical insurance.
Mr Gitogo said claims from such classes of insurance were “higher than normal”, putting pressure on the bottom line.
Britam General Insurance chief executive James Mbithi said the floods and protests manifested in increased frequency and size of claims.
“We saw an increase in the frequency of claims. For example, under fire and home insurance, we saw an increase in claims by about 30 percent from the prior year. When protests started, we also saw an increase in claims,” Mr Mbithi said.
During the review period, Britam Asset Management recovered from a Sh123.39 million loss to post a net profit of Sh18.95 million.
