Britam announces job cuts targeting managers

Regional based insurer Britam has announced job cuts as it commences the restructure of its business.

In a statement issued on Monday, the underwriter says the business realignment process will result in the elimination of some roles.

Employees in the affected roles and positions are expected to exit the business under a voluntary early retirement program (VER), a process expected to close in May 2021.

The insurer has not specified the number of roles targeted in the redundancy program but the exercise will be targeted at managers as Britam cuts oversight roles trough digitization.

“The re-organisation is expected to lead to a leaner executive team with fewer reporting layers that will support the company’s growth in an increasingly competitive business environment,” Britam stated.

The re-organisation of Britam operations is part of the firm’s business review which runs to 2025. The implementation of job cuts is expected to result in a leaner cost base for the company over the long term.

In 2019, Britam’s total expenses grew by 12 per cent to Ksh.31.8 billion from Ksh.28.4 billion. The expenses included Ksh.8.8 billion in operating and other expenses under which staff benefits and other remunerations are covered.

According to the company’s 2019 annual report, Britam supported in excess of 900 direct jobs in the year and a further 2000 roles held by contracted financial advisors.

Britam expect its earnings to fall by more than 25 per cent for the year ended on December 31, 2020 as profits are weighed down by falling returns from investments in equities and real estate.

The underwriter for instance returned a Ksh.1.6 billion half year loss to June last year from its exposure to the pair of investing portfolio.

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