Britam insurance boosts FY growth

by Elayne Wangalwa 0

Britam’s insurance division continues to register impressive growth as it was highlighted during the firm’s full year results.

The Nairobi Securities Exchange (NSE) listed firm’s insurance revenue contributed 95 per cent of the group’s total revenue to stand at 14 billion Kenyan shillings. Kenya contributed the largest chunk to the revenue.

“Insurance is a key aspect of our strategy,” Britam group managing director Benson Wairegi said during an investor briefing.

As a result, the group registered profit before tax which was up 19 per cent to 3.7 billion Kenyan shillings up from 3.1 billion Kenyan shillings posted in 2013. The group also attributed the performance to the successful implementation of the group strategy.

“The key drivers for Britam’s growth were hinged on new business opportunities in regional growth and expansion, strategic partnerships, new product offerings, real estate investment, and opportunities in the county governments,” Wairegi said.

Revenues from the asset management business for the year grew by 13.5 per cent to 696.1 million Kenyan shillings. The group assets grew by 55.6 per cent to stand at 73.0 billion Kenyan shillings from 46.9 billion Kenyan shillings in 2013.

As for their future plans, Britam has said it will remain focused on its 2012-2016 strategic plan that will see them increase local and regional presence, innovative product offering, IT enabled business and capacity transformation.

“Our growth and diversification strategy remains firmly on course. We have our eyes on Africa. Our focus for investment is in Information Technology, mergers and acquisitions, as well as regional expansion,” Wairegi said.

“Our goal is to support the continent’s economic take off through provision of a wide range of financial products and services.”

Wairegi maintained that Kenya still remains their main area of focus and will focus primarily on its expansion in order to become a major force in the market.

Last year, 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.