Britam Holdings has posted a KSh2.2 billion net loss for the full year 2018 compared to KSh527 million net profit recorded in 2017. The insurance and investment services provider blamed the huge loss on restructuring costs, unrealized equities loss, depressed earnings from property investments and the new accounting standard IFRS 9.
The firm’s gross premiums revenue increased from KSh23 billion to KSh24 billion, a 4 percent growth.
Its regional subsidiaries contributed 18 percent of the overall revenue. The company’s total expenses went up by 5 percent to KSh28 billion mainly driven by a rise in operating costs and a change in the value of policyholders’ benefits.
Britam 2.2B loss is just a corporate corruption. The Murang`a business mafia should come clean what the hell they are doing with Britam & Housing Finance.
~Africa Rising— David Wagikuyu🇰🇪 (@davidwagikuyu) April 1, 2019
Britam expanded its asset base by 5 percent to KSh104 billion from KSh99 billion registered the previous year. The company’s debts also went up by 4 percent to settle at KSh79 billion largely propelled by higher insurance contract liabilities as well as other payable contracts.
The listed firm increased its equity value by 6 per cent through issuing new shares to the private equity firm AfricInvest in exchange for KSh24 billion worth of investment.
Britam is counting on its financial advisers, investment in technology and its micro insurance business to drive up revenues in the future.
#Corporatelosses2018 – Companies that issued profit warnings in 2018; National Bank, Williamson Tea, Kapchuoria Tea, Kenya Re, Unga Group, Crown Paints, UAP, Britam, Sameer Africa, Kenya Power, Bamburi Cement, Mumias Sugar, and Sanlam. (Thread) pic.twitter.com/py6Buz0WcL— Newsroom (@MaudhuiHouse) April 1, 2019
National Bank has posted a 98 percent decline in net profits from Sh410 million in 2017 to Sh7 million last year following 65 percent defaults on their loan book with Gross NPLs of Sh31 billion. #Corporatelosses2018— Newsroom (@MaudhuiHouse) April 1, 2019