Kenya’s Britam records an increase in pretax profit - CNBC Africa

Kenya’s Britam records an increase in pretax profit

Earnings

by Elayne Wangalwa 0

Kenya’s Britam records an increase in pretax profit

For the six months ended June 30 2014, Britam recorded 3.01 billion Kenyan shillings from 2.28 billion Kenyan shillings in the same period the previous year.

The firm with operations in Rwanda, Uganda and South Sudan as well said it sustained high performance with total revenue jumping 28.16 per cent to 10.24 billion Kenyan shillings from 7.99 billion Kenyan shillings in the first half of 2013.

Revenue for the insurance business in Kenya rose to 5.3 billion Kenyan shillings, a 24.8 per cent growth from 4.3 billion Kenyan shillings in 2013.

Total assets grew by 28.35 per cent to 55.15 billion Kenyan shillings in the first half of 2014 while assets under management for the asset management business grew to 41.5 billion Kenyan shillings from 32.7 billion Kenyan shillings.

Britam is seeking to increase asset management’s contribution to total revenue by 5.5 per cent to 20 per cent in two years.

The group’s asset management revenue in the first half of 2014, grew 413.8 million Kenyan shillings up from last year’s 267.2 million Kenyan shillings.

Investment income matured by 24 per cent to 4.6 billion Kenyan shillings, up from 3.7 billion Kenyan shillings posted in 2013.

The Nairobi Securities Exchange (NSE) listed firm which is the first insurance sector stock in the NSE 20 Share Index said it will continue to invest in real estate and private equity. In July, the company announced of its intention to secure the 24.75 per cent stake held by Equity Bank in the mortgage company, Housing Finance.

Last month, Britam raised its 6 billion dollar corporate bond which 147 per cent over the subscription level to fund expansion across East Africa in on ongoing and new real estate projects, strategic initiatives, local and regional business growth and Information Communication and Technology.

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