Britam Holdings Plc, the Nairobi-based financial services group backed by leading Kenyan investors Peter Munga, James Mwangi, Jimnah Mbaru, and Jane Wanjiru Michuki, delivered a stronger first-half performance in 2026, with profit growth driven by improved underwriting margins and rising fee income despite a sharp decline in investment gains.

The performance gives Britam a strong start to its 2026–2030 ASCEND strategy, with higher earnings, stronger operating cash flows and a growing asset base supporting its expansion across seven African markets.

The insurer reported a 53.3% increase in profit after tax to Ksh2.66 billion ($20.5 million) for the six months ended June 30, 2026, from Ksh1.74 billion ($13.4 million) a year earlier. Profit before tax rose 52% to Ksh3.82 billion ($29.5 million), reflecting stronger performance from its core insurance operations.

Underwriting gains offset weaker investment income

Britam’s insurance business provided the strongest earnings support during the period, with insurance revenue increasing 13.7% to Ksh22.39 billion ($172.5 million) from Ksh19.69 billion ($151.8 million). The net insurance service result, which measures underwriting profitability under IFRS 17, rose 36.1% to Ksh1.76 billion ($13.6 million), supported by improved claims experience and disciplined execution across the Life and General Insurance businesses.

Investment income, however, weakened during the period. Net investment income fell 22.4% to Ksh13.42 billion ($103.4 million), largely because fair value gains on financial assets dropped to Ksh1.11 billion ($8.6 million) from Ksh6.25 billion ($48.2 million). Interest and dividend income continued to improve, rising to Ksh11.96 billion ($92.2 million) from Ksh10.59 billion ($81.7 million), helping cushion the decline in fair value gains.

Despite the weaker investment performance, Britam’s net insurance and investment result climbed 63.1% to Ksh4.25 billion ($32.8 million), highlighting the growing contribution of its underwriting operations.

Fund management also emerged as a key growth driver, with fund management fees jumping 68.2% to Ksh662 million ($5.1 million) from Ksh394 million ($3 million). Earnings per share increased 54.4% to Ksh1.05 from Ksh0.68, while the board did not recommend an interim dividend.

Balance sheet strengthens as assets reach $2.1 billion

Britam’s balance sheet continued to expand, with total assets rising 11.1% to Ksh270.84 billion ($2.09 billion) from Ksh243.78 billion ($1.88 billion).

Shareholders’ equity increased 7.2% to Ksh37.57 billion ($289.6 million) from Ksh35.05 billion ($270.3 million), providing a stronger capital base as the Group begins executing its new five-year growth strategy.

Cash generation also improved significantly. Net cash generated from operating activities reached Ksh9.67 billion ($74.6 million), compared with an outflow of Ksh2.32 billion ($17.9 million) a year earlier.

Britam operates across Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique and Malawi, giving the Group a diversified regional earnings base as it enters the next phase of its expansion.

ASCEND strategy gains early traction

Group Managing Director and CEO Tom Gitogo said the first-half results provide an encouraging start to Britam’s new strategic cycle, which focuses on sustainable African expansion, customer-led innovation, operational excellence and digital transformation.

“These results give us an encouraging start to our ASCEND Strategy and show that we are moving in the right direction by responding to customers’ needs and translating that into sustainable business growth,” Gitogo said.

He added that the improvement in the insurance service result demonstrates the underlying strength of Britam’s core business, while the Group remains focused on customer experience, distribution and digital capabilities.

The results mark the first major financial test of Britam’s 2026–2030 ASCEND strategy. With underwriting profitability improving, fund management income accelerating and the balance sheet expanding, the Group enters the second half of 2026 with stronger momentum across its diversified African operations.