Britam Holdings has reported a drop in its financial performance for the year ended December 2020.
Britam’s short coming came from a Ksh.5.2 billion provision for investment losses in Wealth Management Fund LLP, a fund manager under the wings of Britam Asset Managers- a subsidiary of Britam Holdings.
“The Holding Company is committed to support the fund to fulfill its obligations as they fall due, through management oversight of the fund’s operations and the agreed recovery plan,” Britam stated.
However, Tavaziva Madzinga, Britam’s Group Managing Director reiterated that the Group’s fundamentals remain strong and with a new transformative strategy being implemented, coupled with an improved operating environment, the Group’s performance is looking very positive for 2021.
“We remain financially strong with a stable solvency capital position,” he said.
He added that the pandemic has accelerated opportunities in their markets as customers are increasingly focused on their health and well-being.
“The Covid-19 situation has been a powerful accelerant to the company’s innovation efforts,” he stated.
“The pandemic has propelled Britam digital strategy which has enabled us put customer needs at the centre of everything we do. We will deploy deep customer insights and data analytics to better understand their needs and provide relevant solutions.”
Further, Madzinga added that Britam is well-placed to tap emerging opportunities with its underlying financial strength and a diversified business model.
Britam’s core underwriting business nevertheless remained unscratched in 2020 with net earned premiums in the year holding steady at Ksh.23.1 billion on the backdrop of the Covid-19 pandemic crisis.
The company’s total expenses covering largely claims and benefits paid out to clients meanwhile rose by 22.6 per cent to Ksh.39 billion.
The firm’s exposure to investments in properties and stocks has continued to see its performance swing in alignment to the performance of the assets.
A general slump in macro-economic conditions has for instance left Britam staring at losses while the reverse has seen the company book significant earnings through over the last few years.
During the year, Britam generated Ksh.7.6 billion in cash inflows while assets grew by 9.4 per cent to Ksh.137 billion while assets under management (AUM) closed the year at Ksh.250 billion.
Meanwhile, Britam’s 2021-25 Strategic Plan seeks to enhance customer experience through customer centricity; expand customer base to drive growth and improve efficiency to ensure better return, additionally, gearing the organisation for enhanced digital innovation.
“Britam will capitalize on investments in tech and the new organizational structure to achieve operational efficiencies and cost management and further, reviewing our investment profile by re-looking at asset allocation with a focus on optimization of returns,” stated the insurer.
Britam will leverage strategic partnerships to drive, scale and grow its customer base through developing targeted and customized products.