Britam profit hits $42.6 million in 2025 on strong investment income

Britam Holdings Plc, the Nairobi-based financial services group, posted a stronger performance in 2025, with profit growth supported by resilient investment income and disciplined cost management despite a tougher operating environment.

Britam enters 2026 with stronger capital buffers, rising assets, and a diversified earnings base, positioning it to navigate macroeconomic uncertainty while pursuing its next phase of growth across Africa.

The insurer reported a 10.01% increase in net profit to Ksh5.54 billion ($42.57 million) for the year ended Dec. 31, 2025, up from Ksh5.03 billion ($38.7 million) in 2024, reflecting sustained execution in the final year of its 2021–2025 strategic cycle.

Investment income cushions underwriting pressure
Britam’s performance was anchored by its investment portfolio, with net investment income rising to Ksh31.9 billion ($245.3 million), up from Ksh30.6 billion ($236.7 million) a year earlier. Strong returns across financial assets and investment properties helped stabilize earnings amid market volatility.

Insurance revenue grew 11% to Ksh41.7 billion ($320.9 million), supported by continued expansion in Kenya and stable contributions from regional markets.

However, profitability from core underwriting weakened. The insurance service result declined 32% to Ksh3.46 billion ($26.6 million), weighed down by higher claims in medical and motor segments and increased risk retention. Despite this, overall earnings remained resilient, underpinned by diversified income streams and disciplined expense management.

Balance sheet strengthens as assets approach $2 billion
Britam’s financial position improved significantly, with total assets rising 16.9% to Ksh243.8 billion ($1.87 billion), driven by growth in investment assets, which climbed to Ksh220.7 billion ($1.7 billion).

Shareholders’ equity increased by 18.97% to Ksh35.05 billion ($269.5 million) from Ksh29.46 billion ($226.52 million), reflecting retained earnings and stronger reserves.

The group maintained solid capitalization across all regulated entities, even as it navigated inflationary pressures, currency volatility, and elevated claims experience across its markets.

Strategy pivot as new growth cycle begins
Chief Executive Officer Tom Gitogo said the results reflect the insurer’s ability to balance growth with risk discipline.

“Britam’s performance underscores strong execution and a resilient balance sheet as we conclude our EPIC2 strategy,” he said.

The company is now shifting focus to its 2026–2030 “ASCEND” strategy, which will prioritize digital transformation, customer-centric innovation, and sustainable growth across African markets.

No dividend as firm prioritizes growth
Despite improved profitability and a stronger capital base, the board did not recommend a dividend payout for 2025, maintaining its position from the previous year as it prioritizes reinvestment and long-term value creation.