Britam profit increases 22pc to Sh2.8bn (Daily Nation (Kenya))

Financial services company Britam has posted a 22 per cent rise in after-tax profit buoyed by growth in insurance and asset management businesses.
The Nairobi Securities Exchange listed firm posted Sh2.8 billion in net earnings for the period ending December 2014 up from Sh2.3 billion recorded over a similar period in 2013.
The jump in profitability comes despite the companys claim of losing Sh3.94 billion to former managers.
Britam last year moved to court accusing the former British-American Asset Managers (BAAM) executives of fraudulently transferring the money to bank accounts held by Acorn Group, a real estate developer.
According to Britam, the alleged fraudulent dealings at BAAM, a wholly-owned subsidiary, was discovered following a forensic audit by KPMG and law firm Coulson Harney. The matter is still pending in court.
Revenue from insurance premiums grew to S4 billion, a 58 per cent jump from last years Sh8.8 billion with management attributing this to Britams acquisition of a controlling stake in Real Insurance last year.
SHARE-SWAP DEAL
“Real Insurance acquisition contributed Sh2.3 billion to the performance of the business,” Britam finance director Gladys Theuri said at an investor briefing yesterday.
Britam at the end of June last year completed the acquisition of Real Insurance in a cash and share-swap deal valued at S.4 billion. The acquisition helped it expand its footprint beyond Kenya, Uganda and Rwanda to Tanzania, Malawi and Mozambique.
Britams asset management business rose by 14 per cent to Sh696.1 million from Sh613.5 million last year.
The firms operating expenses, however, went up by almost a half to Sh2.7 billion, attributed to the groups heavy investment in its growth strategy including a new IT system that is aimed at significantly cutting down operating costs.
“The operating expenses was also as a result of the court battle involving the firm with is four former employees and Acorn group, a real estate firm,” said Ms Theuri.
Last year, Britam issued a corporate bond that saw it raise Sh6 billion aimed at supporting its continued investment in growth and expansion.
Source: Business