Britam In Profitable Turnaround

 

By Kepha Muiruri For Citizen Digital

Regional-based insurer Britam has marked a profit turnaround after posting Ksh.72.1 million in earnings for the year ended December 31 from a loss of Ksh.9.1 billion.

The return to profitability for the Group is tied largely to improving revenue with total income rising by 33.1 per cent to Ksh.40.2 billion.

Britam’s net earned revenues from underwritten soared by eight per cent to Ksh.25.7 billion from Ksh.23.8 billion in 2020.

At the same time, the underwriter's interest and dividend income has grown by 16 per cent to Ksh.10.9 billion after the restructuring of its investment’s portfolio.

Meanwhile, the Group has recorded a marginal decline in costs with total expenses cooling to Ksh.38.9 billion from Ksh.39 billion a year earlier.

Moreover, the firm has posted Ksh.1.8 billion in fair value gains on financial assets compared to a Ksh.2.5 billion loss occasioned by a one-off provision to one of its funds in the year ended December 2020.

Britam board of directors have nevertheless not issued a final dividend to shareholders on the back of the narrow profit.