Britam Net Profit Up By Sh520 Million in 2014 (

A huge growth in insurance premiums helped British-American Investments Company expand total revenues for the year ended December 31 by over a third, offsetting a faster growth in expenditure.
Britam’s gross earned premiums increased to Sh14.05 billion from Sh8.85 billion in 2013, pushing total revenues up by 36.8 per cent to Sh20.69 billion. This includes fund management fees, interest and dividend income from stakes in other firms and commissions.
The financial services provider’s revenue growth dampened a 45.5 per cent jump in expenses to Sh17.74 billion, pushing its net profit up by more than a fifth to Sh2.84 billion from Sh2.32 billion – a 22.4 per cent increase.
Britam will reward its shareholders with a 20 per cent increase in dividend payout at 30 cents per share compared to 25 cents a piece in the previous year.
Its net income from investment property dipped by nearly a third to Sh782.24 million in the period, from Sh1.06 billion in 2013, signalling higher vacancy rates for its rental properties.
The firm raised Sh6 billion through a corporate bond last year to finance regional expansion via acquisitions, seeing its footprint reach seven countries – Kenya, Uganda, Rwanda, Tanzania, South Sudan, Malawi and Mozambique.
Britam completed the acquisition of rival Real Insurance in the period under review, extending its presence to the Southern Africa markets.
“Our growth and diversification strategy remains firmly on course. We have our eyes on Africa,” managing director Benson Wairegi said in a statement on Friday.
The firm said its regional subsidiaries contributed Sh1.6 billion to group revenues, a 436 per cent increase over Sh294 million in 2013, “attributable to organic growth and business acquisition”.
Total expenses grew much faster owing to a 63.7 per cent increase in net insurance benefits and claims to Sh8.02 billion.
Source: Business