Britam Holdings has announced a record net loss of Ksh9.1 billion in the year ended December 2020 from a net profit of Ksh3.5 billion a year earlier.
The company’s Wealth Fund Management Fund LLP alone recorded a net loss of Ksh5.2 billion.
“The results were further depressed by a provision for investment losses of Sh5.2 billion in Wealth Fund Management Fund LLP, a fund managed by Britam Asset Managers which is a fully owned subsidiary of Britam Holdings Plc. The holdings company is committed to supporting the fund to fulfil its obligations as they fall due through oversight of the fund’s operations and the agreed recovery plan,” Britam said in a statement.
Ksh2.3 billion was occasioned by a nosedive of the value of its listed equities and property investments.
“Of this loss, Sh2.3 billion related to a fair valuation loss due to poor equities performance and Sh2 billion related to property impairments,” added Britam.
The company says that its gross earned premiums (GEP) and fund management fees was up 4.2 percent to Ksh28.8 billion from Ksh27.7 billion in 2019.
“This is attributed to the growth of our insurance revenues especially the international general insurance business which recorded an increase in GEP of 50 percent, contributing 28 percent of the group’s GEP and a profit before tax of Ksh832 million up from Ksh38 million in 2019,” said the underwriter.
The loss has come at a time the company is trying to sell its 48.2 percent stake in HF to one of the leading banks in Kenya.