Britam Holdings Plc- 1H18 Results Presentation 1 Contents
Section 1: About US
Section 2: 1H18 Financial Performance Review
Section 3: Delivering on Strategy
2 Section 1: About Us • Overview of Business
• Economic & Industry Highlights 3 About Us
Britam is a leading diversified financial services group listed on the Nairobi Securities Exchange. The group has presence in seven countries in Africa namely; Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique and Malawi.
The group offers a wide range of financial solutions in Life Assurance, General Insurance, Health Insurance, Retirement Planning, Asset Management and Property. These solutions enable our customers to protect and grow their wealth and achieve their financial goals every step of the way.
4 Group Structure
Britam Holdings Plc
Asset Portfolio Insurance Property Management Investments
Britam Britam Asset Britam Asset Britam Equity Group Properties HF Group Plc- Managers Managers Properties Holdings Plc- Uganda – (Kenya) - (Uganda)- 48.4% Kenya – 7.9% 100.0% 100.0% 100.0% 100.0%
Britam Britam Britam General Britam Britam Britam Britam Britam Insurance Life Insurance Insurance Insurance Insurance Insurance Insurance Malawi – Tanzania Kenya – Kenya – Uganda – S. Sudan Rwanda - Mozambique 100.0% 100.0% 100.0% – 55.0% 100.0% – 100.0% 100% – 98.0%
5 Macro-Economic Review: 2018 Projected GDP Rates
Mozambique 3.2%
Malawi 5.1%
Rwanda 10.6%
Tanzania 6.8%
Uganda 6.4%
Kenya 5.7%
Source: Trading Economics 2018
Better weather conditions to favour growth in economic activity in most regions albeit risks from declining interest rates.
6 Industry Highlights- Our Businesses
Projected penetration rate for 2017 at 2.9% compared to 2.7% in 2016. Insurance 2018 Q1 Life insurance premiums at Kshs 21.9 billion (1.29%) with General insurance premiums at Kshs 43.3 billion (4.21%).
Asset Management AUMs continue to grow Other Business driven by increased uptake of retail products.
In Kenya there was amendment to the finance Regulatory bill introducing a new subsection (6B) which effectively brings to tax capital gains arising from the transfer of property by general insurance companies.
7 Section 2: 1H18 Financial Performance Review 8 8 Group Consolidated Financial Results
% Shs Millions Jun- 2018 Jun-2017 Change Gross earned premiums & Fund 12,920 11,688 11% Management fees Investment income 3,662 2,772 32%
Net insurance claims, increase in policy holder's benefits and loss adjustment 8,969 7,183 25% expenses & Interest payments/ increase unit value
Operating expenses & finance costs 4,843 4,489 8%
Profit before tax 1,366 1,282 7%
9 Premium Composition: Reflects Britam’s Diversified Business Mix
11% CAGR 12,000
10,000
8,000 5,479 6,278
6,000 4,535 Shs Millions Shs
4,000 1,493 1,327 1,231 2,000 2,464 2,225 1,481
821 809 924 - Jun-16 Jun-17 Jun-18 Property Casualty Motor Life
10 Total Assets up 14% to Shs 112bn
+12% CAGR
120,000 112,419
99,025 100,000
83,643 77,632 80,000 72,450
Shs Millions Shs 60,000
40,000
20,000
- Dec-14 Dec-15 Dec-16 Dec-17 Jun-18
Group’s asset base increased by 14% to Shs 112bn on the back of a strong performance.
11 AUM up 9% to Shs 140bn
+36% CAGR 160,000 140,070 140,000
120,000 115,783 105,960 100,000
Shs Millions Shs 80,000 74,061
60,000 41,476 40,000
20,000
- Jun-14 Jun-15 Jun-16 Jun-17 Jun-18
AUMs up 9% to Shs 140bn buoyed by net flows from both retail and institutional clients.
12 Britam Group Investment Assets up 15.5%
Equity Bank, 14%
Other Equities, 5% Fixed Income, 40% Associate, 5%
Money Market, 13%
Unit Trust, 6% Property, 17%
Group total investments assets stood at Shs. 97bn up from Shs. 85bn in December 2017.
13 Section 3: Strategy
14 Delivering on Our Strategy
Going forward, our flagship IT project, project Jawabu, has now positioned us to uniquely disrupt our market by delighting our customers through:
• Omni-channel customer experience (CX): Our customers will be able to interact with us via different mediums e.g. online, contact centre, facebook, whatsapp, etc and get assistance;
• Customer Portals: We are further increasing customer convenience by further launching a buy-online portals, Britam Apps, and USSD. Likewise, our intermediaries will further be able to interact with us through intermediaries portal e.g. FA portal, Broker Portal;
• Process innovation: We are launching virtual assistance which will revoluationalize our workflow efficiencies and Service Level Agreements (SLA); and
• Data management & Advanced analytics: Our investment in technology now enables us to leverage on big data and business intelligence to support insights and improve customer experience.
15 THANK YOU
With you every step of the way
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