Britam announces a Ksh.1.6 billion half-year loss
Insurer Britam has announced a Ksh.1.6 billion loss for the first six months of operations in 2020, plunging from a Ksh.1.7 billion profit last year.
The return to loss making is largely attributable to the underwriter’s exposure to the stock market and properties which saw it mark Ksh.3.2 billion as fair value losses on financial assets in the period.
A majority Ksh.3.1 billion was lost to the depressed performance of the market which saw an exodus of investments into safer asset classes while Ksh.929 million was lost to a distressed property market bedevilled by low occupancy levels and rental yields.
Britam however marked improved earnings from underwriting as gross earned revenues by 9 percent to Ksh.13.8 billion from increased premium earnings in its general insurance business.
The insurer has established a trend of falling victim to its stock market and properties exposure in times of an economic slump by falling into losses.
The company’s earnings per share (EPS) has collapsed to a negative 65 cents.
The board has not recommended an interim dividend for the period.