Britam Holdings swung into the profit territory last year posting Kshs. 1 billion in pre-tax profit after the insurer posted a pre-tax loss of Kshs. 9.7 billion in 2020.

The company says the performance was supported by growth in premiums in its local and regional Operations.

Gross earned premiums and fund management fees went up by 12.8% to Kshs. 32.5 billion against Kshs. 28.8 billion posted in 2020.

Last year Britam holdings caused jitters in the market after it swung into the loss-making territory posting Kshs. 9.7 billion after years of consistent growth.

The company embarked on a painful business reorganization process that saw various positions declared redundant and the exit of its former chief executive Tavaziva Madzinga and other top executives.

The company says regional businesses recorded a total gross earned premium of Kshs. 8.1 billion which is a growth of 3.3% from Kshs. 7.9 billion recorded in the financial year 2020.

The Group’s investment income in the year was Kshs. 10.9 billion, representing a 15.7% growth compared to Kshs. 9.4 billion recorded in the previous financial year.

Britain’s Group Chairman Kuria Muchiru says the growth in investment income was driven mainly by the continuing shift of the Group’s investment strategy.

The company is leveraging on strategic partnerships to drive scale, grow its customer base and increase access to insurance services.

The Group’s total operating costs were down 15.8% to Kshs. 11.3 billion.

Despite a one-off business transformation cost that the business incurred as the group implements its transformation strategy.

Britam has a presence in Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi.

However, shareholders will not receive any dividend payout as the insurer says the profit will be used to support its business growth.

By Fred Odanga Azelwa.