Britam, backed by leading Kenyan investors, reports $38.9 million profit in 2024

Key Points

• Britam’s net profit rose 53% to $38.9 million, driven by investment gains and cost efficiency across insurance and asset management.
• Net investment income jumped 163% to $236.7 million, supported by a strong portfolio strategy and market resilience.
• Despite forex losses, Britam’s assets grew 20% to $1.62 billion, reinforcing financial strength as it marks 60 years in business.

Britam Holdings, the Nairobi-based financial services group backed by prominent Kenyan investors Jimnah Mbaru, Peter Munga, James Mwangi, and Jane Wanjiru Michuki, posted another strong performance in 2024, with profits rising to $38.9 million.

The company reported a 53.49 percent jump in net profit to Ksh5.03 billion ($38.92 million) for the fiscal year ended Dec. 31, 2024, up from Ksh3.28 billion ($25.36 million) the previous year. This growth was fueled by higher investment income and disciplined cost management across its insurance and asset management businesses.

Investment income and insurance revenue drive growth

Britam’s net investment income surged 163 percent to Ksh30.6 billion ($236.7 million), reflecting a well-executed portfolio strategy. Meanwhile, insurance revenue edged up 3 percent to Ksh37.6 billion ($290.4 million), with regional operations contributing 27 percent (Ksh10.3 billion/$79.64 million) despite currency depreciation.

The company’s insurance service result also improved, climbing 35 percent to Ksh5.07 billion ($39.4 million), driven by stronger underwriting and higher business volumes. At the same time, finance expenses on issued insurance contracts rose 203 percent to Ksh27.7 billion ($215.3 million), reflecting higher returns to policyholders amid improved investment performance and financial risk adjustments.

Kenya remained Britam’s main revenue driver, generating nearly 80 percent of the company’s profit, while regional markets accounted for the rest.

Stronger balance sheet and market position

Britam’s financial position remained solid, with total equity rising 15 percent to Ksh29.46 billion ($228.77 million), reinforcing its resilience.

“Britam’s performance underscores the success of our EPIC2 strategy, which focuses on profitable growth, operational efficiency, and investment optimization,” said Group MD & CEO Tom Gitogo. “We remain committed to creating long-term value for our shareholders while strengthening our market leadership.”

The company’s total assets grew 19.58 percent to Ksh208.5 billion ($1.62 billion), while equity climbed to Ksh29.5 billion ($229.24 million) from Ksh25.7 billion ($199.71 million) in 2023. Despite a Ksh1.3 billion ($10.1 million) forex loss from weaker regional currencies, all its regulated entities remained well-capitalized.

As Britam marks its 60th anniversary, it remains focused on sustainable growth and shareholder value, guided by its 2021-2025 strategic plan.