Justus Ondari
14 May 2008
Nairobi — British-American Investments Company (Kenya) Limited Group has recorded a sterling performance, more than trebling its profit for the year ended December 31, 2007.
Pre-tax profit for the financial services group, whose subsidiaries are British-American Insurance (Britak) and British-American Asset Managers, increased from Sh486.3 million recorded in 2006 to Sh2.1 billion in 2007, a phenomenal 334 per cent growth.
During the year under review, gross earned premiums grew from Sh2 billion in 2006 to stand at the Sh2.5 billion mark, representing a 25 per cent growth, largely driven by Britak's good performance.
"Our underwriting business did very well during the year," Mr Benson Wairegi, Group chief executive officer, said on Tuesday.
Strong share
Britak had the highest number of top life insurance sales agents in 2007-88 out of the total 196-at the Association of Kenya Insurers annual awards to scoop the Insurance Company of the Year award.
Claims and policyholders benefits payable remained almost unchanged during the period under review at Sh1.57 billion. The Group's investment income also increased from Sh1.1 billion recorded in 2006 to Sh2.4 billion, representing a 118 per cent growth.
"Good performance of the stock market and the Equity Bank share contributed to the investment income growth during the year," said Mr Wairegi, referring to last year's stock market performance and especially and the Equity Bank share.
In a year when the firm jointly bought with Equity bank a 24.9 per cent stake in mortgage financier, Housing Finance Corporation, its mortgage loans increased from Sh731.9 million in 2006 to Sh766.3 million last year, a 4.7 per cent growth.
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