Britam Insurance has sunk into a Sh9.1 billion net loss for the year ended December 2020 from a Sh3.5 billion profit the previous year on higher operation costs, decline in financial assets and investment incomes.
Despite collecting more premiums, Sh28.1 billion in 2020 as compared to Sh27.1 billion, income from investments and property fell to a loss of Sh1.4 billion.
Loses on financial assets dropped from a profit of Sh4.3 billion in 2019 to a Sh2.4 billion loss last year.
Britam blamed its subsidiary, Housing Finance, for contributing a share of loss at Sh823 million and a reduction in the value of its investment in the bank of Sh603 million.
The Insurance firm plans to sell part of its 48.2 per cent stake in mortgage financier, HF Group, to one of the country’s big banks as part of a review of its investment portfolio.
Even as revenues fell, the company dug itself into the biggest hole from operating expenses that jumped from Sh8.7 billion to Sh13.4 billion.
The insurance company recently undertook a radical restructuring after long-serving boss Benson Wairegi exited.
He was replaced by former chief executive of Old Mutual’s Kenyan business Tavaziva Madzinga as MD who has been implementing restructuring at the firm which will see 138 workers leave Britam.
The board chairman Andrew Hollas also left and was replaced with Mohamed Said Karama in an acting capacity.
Britam announced it had scrapped several board positions including principal executive director, chief of staff, group chief operating officer, corporate affairs director, chief actuary & product development, chief investment, Britam asset manager, group commercial, finance, head of internal audit, legal and company secretary.
It also scrapped executive positions heading life assurance, general insurance and micro insurance.