NAIROBI, Kenya, Jul 20- Britam Holdings has reported a Sh2.3 billion loss before tax in its half year earnings 2020.
The results are a drop from Sh2.4 billion it had recorded in a similar period last year.
The group saw its total assets grow by 3 percent in the first six months of the year to Sh128.5 billion from Sh125.24 billion posted in December 2019.
At the same time, the group’s operating results were up by 9 percent from Sh12.6 billion for the period to 30 June 2019 to Sh13.8 billion for the period to 30 June 2020.
“The group’s operating costs have declined by 6 percent, on the back of 9 percent revenue growth. This drop-in cost is attributed to prudent control cost measures,” said Britam Chairman Andrew Holiss and Group Managing director Benson Wairegi in a statement.
The company attributes the increase to the continued growth of our insurance revenue through the international general insurance business which recorded an increase in gross earned premium of 34 percent, contributing 23 percent of the Group’s gross earned premium and a profit of Sh575 million.
Britam also highlighted that COVID-19 has impacted the business negatively with the fair value losses of Sh3.1 billion following the depressed performance of the stock market as investors’ preferences shift to fixed income securities.
Property revaluation also extended the losses of Sh929 million due to the depressed property market which has witnessed low occupancy levels and rental yields.
Britam Holdings board has not recommended payment of an interim dividend.
