Britam Holdings Plc has reportedly announced a net loss of 1.6 billion Kenyan Shillings in the six (6) months that ended on the 30th of June 2020. This is a far cry from the net profit of 1.7 billion Kenyan Shillings that was achieved during the same period in 2019.
The financial services firm which is listed on the Nairobi Securities Exchange (NSE), saw a loss of 2.3 billion Kenyan Shillings in the first half of 2020 pretax. In the same period, it had recorded an amazing profit of 2.4 billion Kenyan Shillings during the same period in 2019.
Britam Holdings Plc made it known that its current financial performance is a byproduct of the ongoing COVID-19 pandemic and it’s almost unavoidable negative effects on businesses. A majority of its investments in property and equity have been severely hit.
The Board of Directors for Britam Holdings Plc, revealed that that the company’s losses are estimated at around 3.1 billion Kenyan Shillings after weakened activities at the Nairobi Securities Exchange (NSE) and a number of investors running to much safer securities that are fixed-income.
Low rent returns as well as reduced occupancy, saw Britam record losses of 929 million Kenyan Shillings in the real estate and property sector.
The company’s gross earned revenue on the bright side, recorded an increase of 9 percent to 13.8 billion Kenyan Shillings in the first six (6) months of 2020 compared to the 12.6 billion Kenyan Shillings achieved during the same period in 2019.
Britam Holdings Plc’s growth in insurance revenue helped boost its gross earned revenue as it contributed 23 percent along with a profit of 575 million Kenyan Shillings.
It’s operating costs were also reduced by 6 percent with very effective cost control measures being praised as the reason for the reduction.
The balance sheet for Britam Holdings Plc increased to 128.5 billion Kenyan Shillings, sporting a 3 percent growth.
As at the 30th of June 2020 the embedded value of the life assurance business stood at an impressive 17 billion Kenyan Shillings with a yearly return of 9 percent.
In the area of interim payment dividend Britam Holdings Plc’s Directors, are yet to make any recommendations.
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