Britam 2020 Financial Results: Britam Holdings has announced a net loss of Sh. 9.1 billion for the full year ended December 2020. The record loss came a year after the firm posted a a net profit of Sh. 3.5 billion for the full year ended December 2019.
This loss has now been attributed to poor returns from investments in its associate Housing Finance Group and investment losses in Wealth Management Fund LLP, a fund managed by its subsidiary Britam Asset Managers. Investment losses in Wealth Management Fund LLP amounted to Sh. 5.2 billion.
“The results were further depressed by a provision for investment losses of Sh. 5.2 billion in Wealth Fund Management Fund LLP, a fund managed by Britam Asset Managers which is a fully owned subsidiary of Britam Holdings Plc,” Britam said in a statement.
“The holdings company is committed to supporting the fund to fulfill its obligations as they fall due through oversight of the fund’s operations and the agreed recovery plan.” Of this loss, Sh. 2.3 billion related to a fair valuation loss due to poor equities performance and Sh. 2 billion related to property impairments.
The firm’s Gross Earned Premiums (GEP), and Fund Management Fees was up 4.2 per cent to Sh. 28.8 Billion from Sh. 27.7 Billion in 2019. This was attributed to the growth of insurance revenues, especially the international general insurance business, which recorded an increase in GEP of 50.0 per cent, contributing 28.0 per cent of the Group’s GEP. Britam’s total underlying operating costs also declined by 6.4 per cent, attributable to prudent cost control measures.
It now remain to be seen if the new chief executive officer will turn around the firm’s fortunes. Britam appointed Zimbabwean Tavaziva Madzinga as its chief executive officer effective February 1, replacing long serving Benson Wairegi who had been with the insurer for 40 years. The firm also replaced its former chairman, Andrew Hollas, with Mohamed Said Karama who is holding brief in an acting capacity. Britam 2020 Financial Results.