KENYA – Diversified financial services group Britam Holdings Plc, reported a net loss of US$84 million for the financial year ended 31st December 2020.

The financial services provider firm attributes this depressed financial performance to poor returns from investments in its associate Housing Finance Group (HFC) and investment losses in Wealth Management Fund LLP, a fund managed by its subsidiary Britam Asset Managers.

Investment losses in Wealth Management Fund LLP amounted to US447 million.

The Nairobi Securities Exchange-listed Britam Holding Plc has a presence in Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique and Malawi.

It deals in Insurance, Asset Management, Banking and Property.

According to its audited financial results, Britam Holdings Plc reported a pre-tax loss of US$90 million compared to a pre-tax profit of US$42.6 million in 2019.

Out of this loss, US$21 million were related to a fair valuation loss due to poor equities performance and US$18.5 million related to property impairments.

The unfavourable operating environment adversely impacted the Group’s investment in associate – HF Group Plc – contributing to the Group results, a share of loss at US$7.6 million and a reduction in the value of this investment by US$5.6 million.

The Group’s Gross Earned Premiums (GEP), and Fund Management Fees was up 4.2% to US$266.8 million from US$256.6million in 2019.

This is attributed to the growth of our insurance revenues, especially the international general insurance business, which recorded an increase in GEP of 50.0%, contributing 28.0% of the Group’s GEP.

“The depressed financial performance to poor returns from investments in its associate Housing Finance Group (HFC) and investment losses in Wealth Management Fund LLP, a fund managed by its subsidiary Britam Asset Managers”

The Group’s total underlying operating costs also declined by 6.4%, attributable to prudent cost control measures.

The Group realized positive operating cash flows of US$70.4 million and significantly grew its investments in fixed income return assets.

Britam’s Balance Sheet size stood at US$1.3 billion, a 9.4% growth from 2019, while assets under management closed at US$2.3 billion.

The Group said it is finalizing the 2021-2025 strategy following the end of the 2016-2020 strategy.

It also plans to complete and commence execution of the Customer-Centric 2021-2025 transformation Strategy.

In March 2021, Britam announced a new executive team that it says will deliver enhanced service to its customers and position the company for long-term growth. 

Under the new leaner structure, the company’s executive team will comprise eleven directors after dropping nine positions. 

Britam retained six key executives with new mandates from the previous executive team and appointed one new executive member on promotion whilst announcing a new appointee who was externally sourced.

Britam’s Group Managing Director, Mr Tavaziva Madzinga, said the new executive structure promotes diversity and aims to build a pan-African team to deliver on the 2021- 2025 business strategy.  

The Board of Directors has not recommended the payment of a dividend, compared to the prior financial year when a dividend of US$0.0023 per share, amounting to US$5.8 million, was paid out.

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