Britam has announced a significant surge in its financial performance, posting a profit before tax of KES 4.82 billion for the fiscal year ending on December 31, 2023. This marks a remarkable 65% increment from the KES 2.92 billion recorded in the preceding financial year, signaling robust growth and resilience in the face of economic challenges.
The impressive financial results are attributed to a notable expansion in top-line revenue stemming from both insurance and investment activities. Despite fair value losses incurred from fixed income securities, Britam’s diversified revenue streams have bolstered its performance.
According to the released financial statement, the Group’s insurance revenue witnessed a staggering 41% increase, reaching KES 36.4 billion from KES 25.8 billion in 2022. This growth was primarily fueled by substantial expansions in both the Kenyan insurance sector and the general insurance regional business, which collectively contributed 29% of the total insurance revenue.
Moreover, the Group’s total insurance revenue and fund management fees surged by 40% to KES 37.1 billion from KES 26.4 billion in 2022. Notably, international businesses played a pivotal role, generating KES 10.6 billion and constituting 29% of the total insurance revenue, reaffirming the significance of geographical diversification in Britam’s strategic framework.
In terms of profitability, the Kenyan businesses recorded a pre-tax profit of KES 3.4 billion, while regional businesses contributed KES 1.4 billion, accounting for 29% of the Group’s pre-tax profit.
Britam’s investment portfolio also witnessed growth, with net investment income climbing to KES 11.61 billion from KES 11.32 billion. This uptick in returns is attributed to the ongoing realignment of the portfolio aimed at enhancing yields and stability.
The Group’s balance sheet remained robust, with total equity increasing to KES 25.69 billion from KES 22.16 billion in the previous year, indicating a strengthened financial position and resilience against economic uncertainties.
