Britam Holdings Plc, a leading integrated financial services firm in East Africa, announced impressive financial results for the year ended December 31, 2023, posting a notable surge in profit before tax by 65 per cent to Sh4.82 billion, compared to Sh2.9 billion in the previous year.

The company demonstrated significant growth across key performance indicators, showcasing resilience in a challenging economic climate.

Profitability Soars:

This robust performance stemmed from effective cost management and increased revenue streams from both insurance and investment activities.

However, fair value losses on fixed-income securities doubled to Sh4.6 billion from Sh2.3 billion because of rising interest rates in the overall economic environment.

Topline Growth Impresses:

The Group's insurance revenue witnessed a remarkable 41 per cent increase to Sh36.4 billion, up from Sh25.8 billion in 2022.

This growth was primarily driven by strong performance in both Kenyan insurance businesses and the general insurance regional business, which contributed 29 per cent of the total insurance revenue.

Additionally, interest and dividend income saw a 20 per cent rise to Sh15.6 billion, fueled by revenue growth and strategic portfolio adjustments aimed at higher and more stable yields.

Solid Balance Sheet:

Britam's balance sheet remains robust with total equity increasing to Sh25.6 billion from Sh22.2 billion, highlighting a strengthened financial position and the ability to navigate economic uncertainties.

Strategic Focus Delivers:

"We are confident of Britam's growth trajectory, supported by our subsidiaries in Kenya and the region," commented Tom Gitogo, Group MD & CEO.

"The business is adept at growing revenue while keeping operating costs under control."

Gitogo further emphasized the Group's commitment to customer-centric transformation, which has led to an increase in customer base and product adoption, particularly through digital channels and partnerships focused on emerging market consumers.

Challenges and Opportunities: While profitability was impacted by fair value losses on investments due to rising yields, Britam remains focused on capitalizing on growth opportunities across its footprint.

Leveraging its strong brand recognition, the company aims to drive financial literacy, innovate in the underpenetrated insurance market, and seize growth opportunities across the region.

IFRS 17 Implementation:

As previously announced, Britam successfully implemented the new accounting standard, IFRS 17, effective January 1, 2023.

This ensures compliance and transparency in financial reporting. The adjustments arising from this implementation have minimal impact on the company's business strategy, operations, cash flow generation, solvency, or dividend policy.

Dividend Update:

The Board of Directors did not recommend a dividend payout for the year ended December 31, 2023.