Par Value:
Closing Price: 8.34
Total Shares Issued: 2523486816.00
Market Capitalization: 21,045,880,045
EPS: -3.62
PE: -2.304
BRITAM reports HY 2021 Earnings through 30th June 2021 versus through 30th June 2020
HY Total Assets 146.857496b versus 136.962471b
HY 2021 Gross earned premium and Fund Management Fees 14.858244b versus 14.055644b
HY Less reinsurance premium ceded [2.891533b] versus [2.373654b]
HY Net Earned Revenue 11.966711b versus 11.681990b
HY Investment Income 4.926603b verus 3.636795b
HY Gains [Losses] on financial Assets at Fair Value 1.366200b versus [3.219690b]
HY Commissions earned 775.867m versus 635.592m
HY Other Income 665.806m versus 208.604m
HY Total Income 19.701187b versus 12.943291b
HY Net Insurance claims 9.387887b versus 8.109927b
HY Interest Payments 2.357487b versus 1.131574b
HY Operating and Other Expenses 4.902854b versus 3.897380b
HY Commissions expense 2.041288b versus 1.831093b
HY Total Expenses 18.886876b versus 15.108557b
HY Profit [Loss] before share of Loss of Associate 814.311m versus [2.165266b]
HY Share of loss of associate [166.869m] versus [142.496m]
HY Profit [Loss] before Tax 647.422m versus [2.307762b]
HY Profit [Loss] after Tax 376.301m versus [1.634505b]
Comprehensive Income [Loss] for the Period 1.232555b versus [4.236456b]
HY EPS 0.14 versus [0.65]
Conclusions
I expect this turnaround to gain traction
BRITAM reports FY 2020 Earnings through 31st Dec 2020 versus 12 months through 31st Dec 2019
FY Gross Earned premiums 28.199619b versus 27.131870b
FY Net Earned Premiums 23.145633b versus 23.109892b
FY Interest and Dividend Income 9.397384b versus 7.713830b
FY Net Income [Loss] from investment Property [1.470336b] versus [0.747036b]
FY Net unrealised fair Value Gains [Losses] on financial assets [2.466634b] versus 4.300055b
FY Commissions earned 1.218404b versus 0.999870b
FY Total Income 30.152948b versus 36.446252b
FY Insurance Claims and loss adjustment expenses 21.080743b versus 17.131739b
FY Amount recoverable from reinsurers [2.431371b] versus [1.689234b]
FY Net Insurance benefits and Claims 18.649372b versus 15.442505b
FY Interest Payments/ increase in unit value 2.759170b versus 3.889475b
FY Operating and other expenses 13.455260b versus 8.794161b
FY Commissions Expense 3.802160b versus 3.461322b
FY Total Expenses 39.027509b versus 31.822130b
FY Profit [Loss] before share of the [Loss] of associate [8.874561b] versus 4.624122b
FY Share of [Loss] of Associate [0.823049b] versus [53.099m]
FY Profit [loss] before Income Tax [9.697610b] versus 4.571023b
FY Profit [Loss] for the year [9.111539b] versus 3.542625b
FY Total other comprehensive income [Loss] [2.567583b] versus 1.878031b
FY Total comprehensive income [Loss] for the year [11.679122b] versus 5.420656b
FY EPS [3.62] versus 1.41
Cash and Cash Equivalents 7.498000b versus 7.575311b
Commentary
Group reported a Loss before tax of 9.7b compared to a Profit before tax of 4.6b in 2019
Of this Loss, 2.3b related to a fair valuation loss due to poor equities performance and 2.0b related to property impairments
Unfavourable operating environment adversely impacted our investment in associate HF Group PLC contributing to the Group results
a share of loss at 0.823b and a reduction in the value of this investment by 0.603b
Results were further depressed by a provision for investment losses of 5.2b in Wealth Management Fund LLP
The Operating results were better than 2019
Gross Earned Premiums [GEP] and Fund Management Fees was up 4.2% to 28.8b from 27.7b in 2019
International General Insurance business recorded an increase in GEP of 50% contributing 28% of Groups gap and a Profit before Tax 0.832b versus 38m
Groups total underlying operating costs also declined by 6.4%
Total Assets for the group closed at 137b +9.4% from 2019
Assets under Management closing at 250b
No Dividend
Britam Holdings Plc Audited Financial Results for the Year Ended 31st December 2020. @tradingroomke
https://twitter.com/tradingroomke/status/1387363368462393344?s=20
Conclusions
Management have done a Baby and Bathwater Job on these results which is the best solution.
BRITAM reports HY 2020 Earnings [The Earnings Release is unreadable]
HY Gross Written Premium 14.055644b versus 12.928780b
HY Net Earned Revenue 11.581990b versus 11.124653b
HY Investment Income 3.636796b versus 2.724543b
HY Total Income 12.943291b versus 16.942286b
HY Profit [Loss] before Tax [2.307762b] versus 2.426236b
HY Profit [Loss] after Tax [1.534506b] versus 1.673077b
HY EPS [0.66] versus [0.60]
Commentary via Dyer and Blair
Management attributed top line growth to continued growth of the international general insurance business which recorded an increase in gross earned premium of 34.0%, contributing 23.0% of the groups gross earned premium and a profit of KES 575.0 MN.
Investment income rose 33.5% yoy to KES 3.6 BN whereas net unrealized gains on assets held at FVPL declined 228.4% yoy to a loss of KES 3.2 BN.
The groups net assets declined 14.4% yoy to KES 25.1 BN on the back of a 2.6% yoy rise in total assets to KES 128.5 BN and a 7.8% yoy rise in total liabilities to KES 103.4 BN.
We do not anticipate a significant recovery until the stock market recovers from the COVID19 related sell off.
On a trailing basis, Britam is trading at a P/E of 61.7x and a P/B of 0.7x against sector median price multiples of 3.7x and 0.6x respectively.
Conclusions
There is a Big Property exposure here.
Britam Holdings PLC FY 2019 results through 31st December 2019 vs. 31st December 2018
FY Gross earned premiums 27.667284b vs. 24.986224b +10.730%
FY Less reinsurance premium ceded [4.021978b] vs. [3.263451b] +23.243%
FY Net earned revenue 23.645306b vs. 21.722773b +8.850%
FY Investment income 7.713830b vs. 6.160381b +25.217%
FY Net [Loss]/ income from investment property [747.036m] vs. 507.207m -247.284%
FY Gains/ [losses] on financial assets at fair value through profit or loss 4.777716b vs. [3.049273b] +256.684%
FY Commissions earned 999.870m vs. 857.381m +16.619%
FY Other income 56.566m vs. 195.142m -71.013%
FY Total income 36.446252b vs. 26.393611b +38.087%
FY Net insurance claims, increase in policyholders benefit and loss adjustment expenses [15.442505b] vs. [14.247140b] +8.390%
FY Interest payments/ increase in unit value [3.889475b] vs. [1.688638b] +130.332%
FY Operating and other expenses [8.794161b] vs. [8.244558b] +6.666%
FY Commissions expenses [3.461322b] vs. [3.313922b] +4.448%
FY Total expenses [31.822130b] vs. [28.399825b] +12.050%
FY Profit before tax 4.571023b vs. [2.295870b] +299.098%
FY Profit for the year 3.542625b vs. [2.210285b] +260.279%
EPS 1.41 vs. [0.92] +253.261%
Dividend 0.25 vs.
Total equity 29.376826b vs. 23.956170b +22.627%
Total assets 125.243565b vs. 103.656332b +20.826%
Cash and cash equivalents at end of year 7.575311b vs. 6.721401b +12.704%
2019 Performance Highlights
The Group has reported a profit before tax of Shs 4.6 billion compared to a loss before tax of Shs 2.3 billion in 2018. This was on the back of good performance as below:
The gross earned premiums growth of 12 percent.
Increased growth of the embedded value of the Britam Life Assurance Company to Shs 16.9 billion, representing a return of 27 percent.
Improved returns from equities and fixed income investments.
Total assets growth to Shs 125.2 billion, a growth of 21 percent from 31 December 2018.
The assets under management achieved an accelerated growth of 55 percent to Shs 227.0 billion within the reporting period.
Update on our Strategy
2020 presents a challenging macro environment. There are a number of key global and regional risks that affect the Group including Covid 19, locusts invasion and a decline in the stock market performance. We are optimistic that there will be concerted effort to mitigate the effects of these adverse developments to the economies and the world at large. We will continue executing our strategy with a specific focus on
Creating value for our current customer base and developing products/services that resonate with the rest of the market that is underinsured and underserved
Continued enhancement of our customer experiences supported by our investments in technology and
Ensuring continued customer convenience by pursuing strategic partnerships that enhance customer value.
Summary of directors remuneration report
During the year the Group paid Shs 159.8 million (2018: Shs 151.3 million) as directors remuneration.
Other Matters
The Board of Directors recommend the payment of a dividend for the year of Shs 630.9 million or 25 cents per share (2018: nil).
The Annual General Meeting date will be communicated later.
Britam Holdings PLC H1 2019 results through 30th June 2019 vs. 30th June 2018
H1 Gross earned premiums 12.616363b vs. 12.525964b +0.722%
H1 Reinsurance premium ceded [1.805116b] vs. [1.748042b] +3.265%
H1 Net earned premiums 10.811247b vs. 10.777922b +0.309%
H1 Investment income 2.724043b vs. 3.661583b -25.605%
H1 Net unrealized fair value gains on financial assets through profit or loss 2.381429b vs. 1.566469b +52.025%
H1 Total revenue 16.942265b vs. 16.848393b +0.557%
H1 Insurance claims and loss adjustment expenses [5.905353b] vs. [5.839965b] +1.120%
H1 Amount recoverable from reinsurers 1.108964b vs. 1.258708b -11.897%
H1 Change in actuarial value of policyholder benefits [1.834136b] vs. [2.959043b] -38.016%
H1 Net insurance benefits and claims [6.630525b] vs. [7.540300b] -12.066%
H1 Operating and other expenses [4.165422b] vs. [4.349919b] -4.241%
H1 Total expenses [14.469047b] vs. [15.485558b] -6.564%
H1 PBT 2.426236b vs. 1.366204b +77.590%
H1 Income tax [753.159m] vs. [385.182m] +95.533%
Profit for the period 1.673077b vs. 981.022m +70.544%
Basic and Diluted EPS 0.66 vs. 0.44 +50.000%
Total equity 25.818242b
Cash and cash equivalents at end of year 6.165434b
FINANCIAL RESULTS FOR THE PERIOD ENDED 30 JUNE 2019
The Board of Directors of Britam Holdings Plc is pleased to announce the unaudited consolidated results for the 6 month period ended 30 June 2019.
Commentary on the Group Results
The Group recorded a growth in profit before tax of 78 percent to Shs 2.4 billion compared to Shs 1.4 billion in June 2018.
Life assurance recorded earned premium growth of 3 percent and continues cementing its position as the market leader.
The embedded value increased to Shs 14.9 billion, a return of 11.9 percent as at the half year.
In line with our regional expansion strategy, our international insurance businesses contributed 19 percent of the Groups topline and have contributed profitably to the Group.
Total assets increased to Shs 113.8 billion, a 10 percent growth from 31 December 2018.
The shareholders funds increased to Shs 25.7 billion, an 8 percent growth from 31 December 2018.
The asset management business continued its accelerated growth achieving Assets Under Management of Shs 172.7 billion.
DIVIDEND
The Board of Directors does not recommend payment of interim dividend.
Britam Holdings PLC FY 2018 results through 31st December 2018 vs. 31st December 2017
FY Gross earned premiums 24.325111b vs. 23.298311b +4.407%
FY Less reinsurance premium ceded [3.263451b] vs. [3.000191b] +8.775%
FY Net earned premiums 21.061660b vs. 20.298120b +3.762%
FY Fund management fees 661.113m vs. 760.630m -13.083%
FY Net [Loss]/ income from investment property 507.207m vs. [607.261m] +183.524%
FY Interest and dividend income 6.160381b vs. 5.053975b +21.892%
FY Net unrealized fair value gains/ [losses] on financial assets [3.091171b] vs. 1.413141b -318.745%
FY Commissions earned 857.381m vs. 744.492m +15.163%
FY Total income 26.393611b vs. 27.836674b -5.184%
FY Insurance claims and loss adjustment expenses [10.704713b] vs. [11.024447b] -2.900%
FY Amount recoverable from reinsurers 1.630406b vs. 2.385116b -31.642%
FY Change in actuarial value of policyholder benefits [5.172833b] vs. [3.859430b] -34.031%
FY Net insurance benefits and claims [14.247140b] vs. [12.498761b] -13.988%
FY Operating and other expenses [8.244558b] vs. [7.355818b] -12.082%
FY Commissions expenses [3.313922b] vs. [3.520150b] -5.859%
FY Total expenses [28.399825b] vs. [27.023837b] +5.092%
FY [Loss]/ Profit before tax [2.295870b] vs. 865.843m -365.160%
FY [Loss]/ Profit for the year [2.210285b] vs. 527.474m -519.032%
EPS [0.92] vs. 0.26 -453.846%
No dividend
Total equity 23.956170b vs. 22.670010b +5.673%
Financial assets at fair value through profit/ loss 39.281935b vs. 30.611376b +28.325%
Total assets 103.656332b vs. 99.024857b +4.677%
Cash and cash equivalents at end of year 6.972437b vs. 8.423155b -17.223%
The Board of Directors of Britam Holdings Plc is pleased to announce the audited consolidated results for the year ended 31 December 2018.
PERFORMANCE OVERVIEW
The Groups gross earned premium and fund management fees registered a growth of 4% to Shs 25.0 billion from Shs 24.1 billion reported in 2017. Our life assurance business registered a higher than industry growth.
The Group returned a loss before tax of Shs 2.3 billion compared to a profit before tax of Shs 865.8 million reported in 2017. A total comprehensive loss of Shs 2.9 billion in 2018 compared to total comprehensive income of Shs 1.9 billion in 2017.
The reported loss is mainly attributable to
Unrealised loss in listed equities of Shs 3.2 billion compared to a gain of Shs 0.9 billion in 2017.
Lower returns on our property investments due to the depressed property market.
One off cost as a result of the business restructuring.
Provisions of the new IFRS 9 due to significant investments in financial assets.
The Groups core business performed well
Gross earned premium and fund management fees registered a growth of 4 percent to Shs 25.0 billion.
Life assurance recorded a premium growth of 6 percent, a higher rate than the industry and continues cementing its position as the market leader.
The embedded value increased to Shs 13.9 billion, a return of 10.5 percent.
Our regional businesses contributed 18 percent of the Group's topline.
Total assets increased to Shs 103.7 billion. This is post the early redemption of the Shs 6 billion corporate bond in October 2018.
The shareholders funds increased to Shs 23.9 billion a 6 per cent increase as a result of issuance of new shares to Africlnvest during the year.
The asset management business continued its accelerated growth achieving Assets Under Management AUM of Shs 146.4 billion, a 14 per cent growth from last year.
Our Strategy
The Group continues to pursue its 2016-2020 strategy. In 2019, we will focus on
Revenue growth through our market leading financial advisory network of over 1,900 financial advisers which has won us the Association of Kenya Insurers company of the year award for 12 years in a row,
Transformation of our customer experiences and offering supported by our investment in technology,
Improving our reach to the currently uninsured market segments through our market leading microinsurance business.
Dividend
The Board of Directors do not recommend the payment a dividend for 2018.
Conclusions
FY Net unrealized fair value gains/ [losses] on financial assets [3.091171b] vs. 1.413141b -318.745% It would be good to know the exact composition of this.
Insurance business posted headline growth +4.407%
Interview with Dr. Benson I. Wairegi EBS Group Managing Director, Britam @BritamEA Video
?v=yVKam7x3STQ
Interview with George Odo Senior Partner and MD, AfricInvest East Africa @AfricInvest_Grp Video
?v=z0NAiG0PKDQ
Britam Holdings PLC H1 2018 results through 30th June 2018 vs. 30th June 2017
H1 Gross earned premiums 12.525964b vs. 11.236317b +11.477%
H1 Reinsurance premium ceded [1.748042b] vs. [1.491205b] -17.223%
H1 Net earned premiums 10.777922b vs. 9.745112b +10.598%
H1 Investment income 3.661583b vs. 2.772369b +32.074%
H1 Net unrealized fair value gains on financial assets through profit or loss 1.566469b vs. 1.181529b +32.580%
H1 Total revenue 16.848393b vs. 14.692991b +14.670%
H1 Insurance claims and loss adjustment expenses [5.839965b] vs. [5.328867b] +9.591%
H1 Amount recoverable from reinsurers 1.258708b vs. 961.398m +30.925%
H1 Change in actuarial value of policyholder benefits [2.959043b] vs. [2.301644b] +28.562%
H1 Net insurance benefits and claims [7.540300b] vs. [6.669113b] +11.571%
H1 Operating and other expenses [4.349919b] vs. [3.898804b] +11.571%
H1 Total expenses [15.485558b] vs. [13.488406b] +14.806%
H1 PBT 1.366204b vs. 1.282214b +6.550%
H1 Income tax [385.182m] vs. [287.125m] +34.151%
Profit for the year 981.022m vs. 995.089m -1.414%
Basic and Diluted EPS 0.44 vs. 0.51 -13.725%
Total equity 28.781956b vs. 19.202168b +49.889%
Financial assets at fair value through profit/ loss 38.164085b vs. 23.175551b +64.674%
Total Assets 112.418843b vs. 90.622836b +24.051%
Cash and cash equivalents at end of year 12.028402b vs. 8.423155b +42.802%
Number of shares 2,523,486,816
@AfricInvest_Grp, was officially admitted as a shareholder of the diversified financial services company this year, following the successful acquisition of a 14.3 per cent stake in Britam Dr. Benson Wairegi #BritamH12018
https://twitter.com/BritamEA/status/1032868883454218240
The deal with AfricInvest came on the heels of a release of Shs 3.6 billion by International Finance Corporation (IFC) the investment arm of the World Bank, to fund strategic projects in the company. #BritamH12018
https://twitter.com/BritamEA/status/1032869298694438912
@DrBensonWairegi Our groups asset base has increased by 14 percent to Shs 112 billion from Shs 99 billion in December 2017, while shareholders funds have increased by 27 percent #BritamH12018
https://twitter.com/BritamEA/status/1032855495915319296
Conclusions
Headline Growth in premiums of +11.477%
Total Revenue +14.67%
IFC and Africinvest now on the Shareholder Register
They have a regional Footprint.
Quite a compelling medium term prospect, I venture
Britam Holdings PLC FY 2017 results through 31st December 2017 vs. 31st December 2016
FY Gross earned premiums 23.298311b vs. 20.291844b +14.816%
FY Less reinsurance premium ceded [3.000191b] vs [2.898259b] +3.517%
FY Net earned premiums 20.298120b vs. 17.393585b +16.699%
FY Fund management fees 760.630m vs. 929.234m -18.144%
FY Net [Loss]/ income from investment property [607.261m] vs. 991.129m -161.270%
FY Interest and dividend income 5.053975b vs. 4.232846b +19.399%
FY Net unrealized fair value gains/ [losses] on financial assets 1.413141b vs. [2.444727b] +157.804%
FY Commissions earned 744.492m vs. 718.839m +3.569%
FY Total income 27.836674b vs. 22.360214b +24.492%
FY Insurance claims and loss adjustment expenses [11.024447b] vs. [8.987829b] +22.660%
FY Amount recoverable from reinsurers 2.385116b vs. 1.201053b +98.585%
FY Change in actuarial value of policyholder benefits [3.859430b] vs. 2.785611b -238.549%
FY Net insurance benefits and claims [12.498761b] vs. [5.001165b] +149.917%
FY Operating and other expenses [7.355818b] vs. [7.094697b] +3.681%
FY Commissions expenses [3.520150b] vs. [3.547258b] -0.764%
FY Total expenses [27.023837b] vs. [18.563362b] +45.576%
FY Profit before tax 865.843m vs. 4.239133b -79.575%
FY Profit for the year 527.474m vs. 2.480204b -78.733%
EPS 0.26 vs. 1.26 -79.365%
Dividend per share 0.35 vs. 0.30 +16.667%
Total equity 22.670010b vs. 17.877596b +26.807%
Financial assets at fair value through profit/ loss 30.611376b vs. 18.397260b +66.391%
Total assets 99.024857b vs. 83.642609b +18.390%
Cash and cash equivalents at end of year 8.423155b vs. 5.967017b +41.162%
Company Commentary
+143% Total comprehensive income 1.9b versus 784.7m
+15% increase in gross earned premium to 23.3b from 20.3b
+24% increase in total income to 27.8b from 22.4b
strong performance of our investments in equities in 2017
FY PBT 865.8m versus 4.2b reported in 2016
Decline attributable to a one off charge that positively impacted 2016 earnings by 5.2b.
GPV [gross premium valuation] method from NPV [net premium valuation] impact of this in 2017 is an increase in net insurance benefits by 150% from 2016
on a constant basis net insurance benefits and claims increased by 23% largely as a result of a 26% revenue growth in the life business.
Groups asset base has increased by 18% to 99b. from 83.7b in 2016
shareholders funds have increased by 27%
Net Insurance business +17% to 20.3b.
Asset management revenue decreased by 16% to 848.4m versus 1b in 2016
Assets under management +18% to 128.9b
Regional businesses contributed revenue of 2.7b [2016:2.4b] which accounted for 13% [2016:14%] of the total net insurance business revenue. these businesses account for 13% of the total income and 8% of the total assets of the group.
Equities returned fair value gains of 3.4b compared to -3.0b in 2016
Investment income [dividends and interest] +19% to 5.1b.
Income from investment Property has declined by 161% from 991.1m to a loss of 607.3m
0.35 cents Final Dividend
Conclusions
Stripping out the effect of the change of methodology from NPV to GPV It was in fact a strong performance.
The adjustment in Real Estate was interesting.
The NSE rebound was material.
H1 Gross earned premiums 11.236317b vs. 10.520271b +6.806%
H1 Reinsurance premium ceded [1.491205b] vs. [1.639368b] -9.038%
H1 Net earned premium 9.745112b vs. 8.880903b +9.731%
H1 Investment income 2.772369b vs. 2.726124b +1.696%
H1 Net unrealised fair value gains on financial assets at fair value through profit or loss 1.181529b vs. [0.342357b] +445.116%
H1 Commissions earned 514.775m vs. 416.941m +23.465%
H1 Total revenue 14.692991b vs. 12.687283b +15.809%
H1 Insurance claims and loss adjustment expenses [5.328867b] vs. [4.259527b] +25.105%
H1 Change in actuarial value of policyholder benefits [2.301644b] vs. 86.536m -2,759.753%
H1 Net insurance benefits and claims [6.669113b] vs. [3.608468b] +84.818%
H1 Interest payments/ increase in unit value [513.893m] vs. [639.912m] -19.693%
H1 Operating and other expenses [3.898804b] vs. [3.529665b] +10.458%
H1 Commissions payable [1.816824b] vs. [1.825156b] -0.457%
H1 Total expenses [13.488406b] vs. [10.117247b] +33.321%
H1 Profit before tax 1.282214b vs. 2.873298b -55.375%
H1 Profit for the year 995.089m vs. 1.778895b -44.565%
Basic and diluted EPS 0.51 vs. 0.92 -44.565%
Total equity 19.202168b vs. 18.964036b +1.256%
Total assets 90.622836b vs. 81.687682b +10.938%
Insurance contract liabilities 21.467000b vs. 21.830980b -1.667%
No interim dividend
Company Commentary
Performance of the group in the year was resilient in the current market conditions
Total income +16%
core insurance business which accounts for 66% [2016 70%] of the Total revenue, remained the key focus generating revenue growth of 10% to 9.7b compared to 8.9b in June 2016
The EV as at June 2017 ad grown by 20% from December 2016 to close at 13.3b with a return of EV at 19.9% [annualised return of 39.8%] compared to a return of 7.2% last year
Investment income [dividends and interest] increased by 15% from 2.1b in June 2016 to 2.5b.
Investment in equities returned fair value gains amounted to 2 1b compared to a loss of 328m in June 2016
regional businesses contributed revenue of 1.2b [June 2016 15% of net earned premiums, 12% of total Income and 6% of total assets of the Group.
Groups asset base increased to 90.6b versus 83.6b in December 2016
AUM 124.5b
Conclusions
They have the largest Listed Portfolio and tis will be marked up big at the FY mark.
They were lapping an unusually strong H1 2016
Buy on Dips.
FY Revenue 20.291844b vs. 19.605675b +3.500%
FY Less Reinsurance premium ceded [2.898259b] vs. [3.231953b] -10.325%
FY Net earned premiums 17.393585b vs. 16.373722b +6.229%
FY Interest and dividend income 4.232846b vs. 3.128572b +35.296%
FY Net unrealised fair values losses on financial assets [2.444727b] vs. [2.836211b] -13.803%
FY Total income 22.360214b vs. 20.130987b +11.074%
FY Insurance claims and loss adjustment expenses [8.987829b] vs. [10.250558b] -12.319%
FY Amounts recoverable from reinsurers 1.201053b vs. 2.405947b -50.080%
FY Change in actuarial value of policyholder benefits 2.785611b vs. [2.769604b] +200.578%
FY Net insurance benefits and claims [5.001165b] vs. [10.614215b] -52.882%
FY Interest payments increase in unit value [1.742978b] vs. [0.495774b] +251.567%
FY Operating and other expenses [7.094697b] vs. [6.716741b] +5.627%
FY Finance costs [1.177264b] vs. [0.802155b] +46.763%
FY Commissions expense [3.547258b] vs. [3.291904b] -15.316%
FY Total expenses [18.563362b] vs. [21.920789b] -15.316%
FY Profit [Loss] before tax 4.239133b vs. [1.194938b] +454.758%
FY Profit [Loss] for the year 2.480204b vs. [1.009458b] +345.697%
EPS 1.28 vs. [0.52] +346.154%
Final Dividend 30cents for a share
Shareholders funds 17.877596b vs. 17.674448b +1.149%
Total assets 83.642609b vs. 77.632352b +7.742%
Insurance contract liabilities 18.744957b vs. 21.786744b -13.962%
Cash and cash equivalents at the end of the year 5.967017b vs. 4.767253b +25.167%
Company Commentary
Key achievements for this period include achieving regionalisation
Operating in 7 countries
increased diversification of the product portfolio asset management, property and micro insurance businesses
Conclusions
Looks attractive at these Levels.
@BritamEA We still retain our position as the market leaders in unit trusts, with stellar growth in our Assets Under Management now at KES 109B
@BritamEA Insurance penetration slowed down to 2.77% from 2.82 in 2016 with Life insurance at 0.997% and Non Life at 1.775% @DrBensonWairegi
H1 Gross earned premium 10.520271b vs. 10.198438b +3.156%
H1 Reinsurance premium ceded [1.639368b] vs. [1.832653b] -10.547%
H1 Net earned premium 8.880903b vs. 8.365785b +6.157%
H1 Investment income 2.726124b vs. 2.351774b +15.918%
H1 Total revenue 12.687283b vs. 11.047297b +14.845%
H1 Insurance claims and loss adjustment expenses [4.259527b] vs. [5.101743b] -16.508%
H1 Change in actuarial value of policyholder benefits [0.086536b] vs. 1.331104b -106.501%
H1 Net insurance benefits and claims [3.608468b] vs. [5.109717b] -29.380%
H1 Operating and other expenses [3.141072b] vs. [2.461579b] +27.604%
H1 Total expenses [10.117237b] vs. [10.205493b] -0.865%
H1 Profit [Loss] before tax 2.873298b vs. 1.043760b +175.283%
H1 Profit [Loss] for the period 1.778895b vs. 0.624563b +184.822%
EPS 0.92 vs. 0.32 +187.500%
Shareholders funds 18.928205b vs. 20.915125b -9.500%
Total assets 81.714237b vs. 76.614854b +6.656%
Cash and cash equivalents at the end of the period 7.457305b vs. 4.954172b +50.526%
Company Commentary
Groups core business performed very well in the first half of 2016 achieving a 175% increase in PBT
Investment Income +38% to 2.4b
Asset Management revenue +21% to 529.4m
Total Assets +7% to 81.7b
THE GPV [Gross Premium Valuation] versus NPV [Net Premium valuation] decline in net claims expense by 2.28 improve in profitability of 1.95b
acquisition of 100% Real Insurance Group
No Interim Dividend
Conclusions
The Change to GPV was worth 1.95b and if you stripped that out H116 PBT was behind
FY Gross earned premium 19.605675b vs. 14.045772b +39.584%
FY Net earned premium 16.373722b vs. 11.792162b +38.853%
FY Net realised gains on financial assets at fair value through profits and loss [2.836211b] vs. 4.102165b -169.139%
FY Total revenue 20.130987b vs. 20.692335b -2.713%
FY Change in actuarial value of policyholder benefits [2.769604b] vs. [3.051301b] -9.232%
FY Net insurance benefits and claims [10.614215b] vs. [8.023291b] +32.293%
FY Operating and other expenses [6.716741b] vs. [4.616406b] +45.497%
FY Total expenses [21.920789b] vs. [17.738960b] +23.577%
FY [Loss] profit before share of the profit of the associate [1.789802b] vs. 2.953375b -160.602%
FY Share of profit of the associates accounted for using the equity method 594.864m vs. 259.007m +129.671%
FY [Loss] profit before tax [1.194938b] vs. 3.212382b -137.198%
FY [Loss] profit for the year [1.009458b] vs. 2.497878b -140.413%
EPS [0.5] vs. 1.31 -138.168%
Dividend 0.30 vs. 0.30
Cash cash equivalents at the end of the year 4.814061b vs. 6.841187b -29.631%
Company Commentary
Core business Revenue increased +38%
Insurance business revenue +40%
Regional Units contribution to insurance business revenue was 4b +152.7%
AUM asset management business increased +66%
Loss on financial assets at Fair Value through profit or loss of -2.8b versus a gain in 2014 of 4.1b
100% acquisition of Real Insurance Group
7 countries operating under BRITAM brand Uganda, Rwanda, Tanzania, South Sudan, Mozambique and Malawi.
Dividend 30 cents a share
Earnings were mainly brought down by KES 2.8bn loss on financial assets at fair value vs 2014 gain of KES 4.1bn. The Company attributed the decline in value of financial assets to poor performance of the securities market. Gross earned premiums grew by 38% to KES 20.3bn but was offset by 32% increase in net claims and benefits to KES 10.6bn. The Groups net loss ratio contracted by 200bps to stand at 62% vs 2014s 64%, implying improved claims management in the period. Investment income was up 31% to KES 4.55bn. Loss after tax stood at KES 1.0bn vs 2014 PAT of KES 2.5bn, hence loss per share stood at KES 0.50 down from an EPS of KES 1.31.
Conclusions
These Earnings were better than expected in fact.
H1 Total Assets 76.614854b versus 55.150514b
H1 Total Revenue 11.047297b versus 10.242909b +7.9%
H1 Gross earned premium 10.198438b vs. 5.611458b +81.7%
H1 Reinsurance premium ceded [1.832653b] vs. [0.583881b] +213.9%
H1 Fund management fees 439.356m vs. 413.750m +6.2%
H1 Investment income 2.351774b vs. 1.694847b +38.8%
H1 Commissions earned 430.009m vs. 141.722m +203.4%
H1 Net unrealised fair value gains on financial assets at fair value though profit and loss [0.842947b] vs. 2.864061b -129.4%
H1 Other income 66.614m vs. 12.247m +443.9%
H1 Insurance claims and loss adjustment expenses 5.101743b vs. 2.125666b +140.0%
H1 Change in actuarial value of policyholder benefits 1.331104b vs. 1.644054b -19.0%
H1 Net insurance benefits and claims 5.109717b vs. 3.598835b +42.0%
H1 Operating and other expenses 2.461579b vs. 1.832683b +34.3%
H1 Total expenses 10.205493b vs. 7.385816b +38.2%
H1 Profit before share of the profit of the associate 0.841804b vs. 2.857093b -70.5%
H1 Share of profit of the associate for using the equity method 201.956m vs. 152.503m +31.4%
H1 Profit Before Tax 1.043760b vs. 3.009596b -65.3%
H1 Profit After Tax 0.624563b vs. 2.746388b -77.3%
H1 Earnings Per Share attributable to owners of the parent 0.32 vs. 1.45 -78.6%
H1 Gains on revaluation of financial assets at fair value through other comprehensive income [0.517181b] vs. 3.295442b -115.7%
H1 Total items that will not be reclassified to profit or loss [0.517181b] vs. 3.308069b -115.6%
H1 Total items that may be reclassified to profit or loss 2.314m vs. 11.077m -79.1%
H1 Total other comprehensive income [0.514867b] vs. 3.319146b -115.5%
H1 Total comprehensive income for the year 0.109696b vs. 6.065534b -98.2%
Company Commentary
The Groups core Business posted tremendous growth in the first Half of the Year
Insurance and Asset management business revenues have grown to 10.6b +77%
Premium income in the insurance Business grew by +82% to 10.2b
Regional business revenue contribution +708% to 2.1b fem 262.9m
Realizable investment income [dividends and interest] and income from property investments increased by 45%
Asset Base grew +38.9%
The bearish performance of the securities market has negatively impacted on the fair value from financial Assets
BRITAM now operates in seven countries in Africa
No Interim Dividend
@BRITAM EA Tweets from the Earnings Release
https://twitter.com/BritamEA
Growth in Group PBT on the Core business Factoring out Fair value gains has grown by 88% BritamH1Results
Britam 30% CAGR on Embedded Value BritamH1Results
We aim to Increase our property portfolio to between 20% & 30% and Reduce reliance on equities 30%. BritamH1Results
In the Balance Sheet we can see 39% Growth in Total Assets BritamH1Results
The Regional business is 19.9% of the business bringing in 2.12 Billion BritamH1Results
Sunil Sanger Sang252 BritamEA records 77% growth in gross earned premium in HY15. Includes revenue from Real Insurance acquisition
Britam BritamEA In brand equity, we are Industry leader in Share of Voice (SoV) 25%, Industry Leader in Top of Mind (ToM) awareness 33%. BritamH1Results
Britam BritamEA Britam is the largest life insurer in Kenya with an 18.7% market share, according to IRAs Q1 2015 statistics. BritamH1results
The other top reason we are here is the property strategy, where we are on track despite the set back with Acorn. BritamH1Results
Conclusions
Strong organic and acquisition [REAL] related growth.
Portfolio related mark to market mark downs crimped these Earnings big.
FY through 31st December 2014 versus through 31st December 2013
FY Gross Earned Premium 14.045772b versus 8.847166b +58.76%
FY Net earned Premium 11.792162b versus 7.751199b +52.1333%
FY Total Revenue 20.692335b versus 15.130058b +36.76%
FY Change in actuarial value of policyholder benefits 3.051301b versus 1.925007b
Net Insurance benefit and claims 8.023291b versus 4.902058b
FY Total Expenses 17.738960b versus 12.190920b
FY Profit before share of the profit of the associate 2.953375b versus 2.939138b +4.84%
FY Share of profit of the associates for using the equity method 774.678m versus 181.685m
Full Year Profit before Tax 3.728053b versus 3.120823b +19.457%
Full Year Profit after Tax 2.840268b versus 2.315448b +22.666%
FY EPS 1.47 versus 1.19 +23.52%
Final Dividend 30cents a share
Company Commentary
Comprehensive income of 6.4b +74.3%
Core business revenue of 14.7b +55.8%
Revenue for the Insurance Business in the Group of 14b +58.8%
Regional subsidiaries contribution to revenue grew 436% to 1.6b from 294m
Asset Base of 73b +55.6%
Conclusions
It would be helpful to know the configuration of the 774.678m share of profit of the Associate.
Well managed. Last years fracas is now behind them.
First Half Earnings through 30th June 2014 versus through 30th June 2013
First Half Gross earned premiums and fund management Fees 6.025208b versus
4.669423b +29.042%
First Half Net Earned Premiums 5.441326b versus 4.091845b +32.979%
First Half investment Income 4.647613b versus 3.744591b +24.11537%
First Half Total Revenue 10.242907b versus 7.986244b +28.256%
First Half Total Expenses 7.385814b versus 5.792327b +27.5103%
First Half Profit before Tax 3.009596b versus 2.280325b +31.98%
First Half Profit After Tax 2.746388b versus 2.158341b +27.245%
First Half Earnings Per Share 1.45 versus 1.14 +30.63%
First Half Gains on revaluation of financial assets at Fair Value through other comprehensive income 3.295442b versus 1.512583b
Company Commentary
Regional offices contribution grew 54.9% to 262.9m
Asset Base of 55.2b +28.3%
Conclusions
Strong and muscular earnings but a lot of this is now baked into the
Price.
British American Investments Company (K) Ltd is a leading diversified financial services Group in the country offering a wide range of Insurance and Asset Management services to individuals, small businesses, corporations and government entities.
Full Year through 31st December 2013 versus through 31st December 2012
FY Gross Earned Premium 8.847166b versus 6.849692b +29.161%
FY Net Earned Premium 7.751199b versus 5.956691b +30.125%
FY Fund Management Fees 613.511m versus 377.208m +62.6%
FY Investment Income 2.759463b versus 1.971016b +40.002%
FY Net Realised gains on Financial Assets 232.727m versus 45.554m
Net Fair Value gains on financial assets at Fair Value through Profit or Loss 3.355541b versus 3.032092b
Commissions earned 370.521m versus 307.639m
FY Total Revenue 15.130058b versus 11.743384b +28.838%
FY Expenses
Insurance claims and loss adjustment Expenses 3.270310b versus 4.282914b -23.642%
Net Insurance benefits and claims 4.826720b versus 3.669331b +31.54%
Operating and other Expenses 3.210990b versus 2.286578b +40.42%
FY Total Expenses 12.115583b versus 9.040823b +34.009%
FY Profit Before Tax 3.196161b versus 2.849406b +12.274%
FY Profit after Tax 2.653789b versus 2.519461b +5.33%
FY Earnings Per Share 1.40 unchanged
Final Dividend 25 cents a share
Company Commentary
Full Year Profit Before Tax +12.2%
Core Business Revenue +30.9%
Revenue for the Insurance Business in Kenya +26.5%
Asset Management Fees +62.6%
Regional Offices contributed 294m +232.2%
Opened Operations in Rwanda
Share Purchase Agreement with Real
Conclusions
They are clearly seeking to Dash for Growth and geographical reach and that can be seen in the +28.838% FY Revenue Gain.
It looks fairly priced now after a really aggressive Rally that started in Q4 2013.
H1 2013 Earnings through June 2013 versus June 2012
Gross Earned premiums 4.402259b versus 3.349667b
H1 Investment Income 1.060872b versus 1.756900b
H1 Net Realised Gains on Financial Assets 333.778m versus 2.061m
Net Fair Value gains on Financial Assets at Fair Value through Profit and Loss 2.349941b versus 0.833837b
H1 Total Expenses 5.792327b versus 4.002092b
H1 PBT 2.280326b versus 1.823139b +25.076%
H1 PAT 2.158342b versus 1.679273b
H1 EPS 1.14 versus 0.93 +22.5086%
No Interim Dividend
Company Commentary
H1 Total Comprehensive Income 3.677b versus 2.798b +31%
Insurance Revenues +31% to 4.4b versus 3.4b
Asset Management Revenues +67%
Conclusions
This is a cheap share.
FY 2012 Earnings versus FY 2011 Earnings
FY Gross Earned Premiums 6.849692b versus 5.607621b
Net Earned Premiums and Management Fee 6.333899b versus 5.175222b
Investment Income 1.971016b versus 1.296171b
Net Realised Gains on Financial Investments 45.554m versus [487.345m]
Net Fair Value Gains on Financial Assets at Fair Value 3.032092b versus [2.902024b]
Net Income 11.743384b versus 3.382684b
Net Insurance Benefits and Claims 3.669331b versus 2.999016b
Operating and Other Expenses 2.286578b versus 1.760544b
FY PBT 2.849406b versus [1.724086b]
FY PAT 2.519461b versus [1.957305b]
Other Comprehensive Income
Gains on Available for Sale Financial Assets 1.527995b versus [2.245832]
Total Comprehensive Income 4.184734b versus [4.186381b]
FY EPS 1.40 versus [1.09]
Final Dividend 25cents a share
Company Commentary
Insurance Revenues +22%
Driving growth via Insurance, Asset Management, Property and Regional expansion
Conclusions
Strong Turnaround Results which were signalled in the Half Year Earnings Release.
H1 through 30th June 2012 versus H1 2011
Gross Earned Premiums 3.349667b versus 2.583994b +29.631%
Net Earned Premiums and Management Fees 2.897517b versus 2.287544b +26.66%
Fund Management Fees 159.035m versus 119.681m +32.88%
Net Earned Premiums and Management Fees 3.056552b versus 2.407225b +26.974%
Investment Income 2.592797b versus [-54,899m]
Net Income 5.772135b versus 2.439058b +136.654%
Net Claims Payable 2.356101b versus 1.247032b +88.936%
Operating and Other Expenses 0.985489b versus 0.766807b +28.5185%
Profit and Loss Before Tax 1.823138b versus [-109.682m] +1762%
Profit and Loss After Tax 1.679271b versus [-197.679m]
Earnings Per Share 0.93 versus -0.13 +815.38%
Gains [or losses] on Available For Sale Financial Assets +1.123217b versus [-222..425m]
Total Comprehensive Income 2.797958b versus [-420.104m]
No Interim Dividend
Future Outlook
Investment in Real Estate
Execution of 10b Property Fund
Commenced Operations in Juba
Conclusions
Strong Turn Around Results which see below were predictable and predicted. On a Forward Implied PE Basis It looks a very cheap share.
FY 2011 Earnings versus FY 2010
Underwriting Profit 377m versus 152m.
Unrealised Losses 3.3b booked through the Profit and Loss Account
Total Unrealised Losses on Equities was 5.5b
Losses on Revaluation Available for Sale Assets -2.245832b
PBT Loss of -1.7b versus Profit of 2.9b
Insurance Business turned a Profit Before Tax 1.1b versus 1b
EPS -1.09 versus 1.81
PAT -1.957305b versus +2.713784b
15 Cents Final Dividend
52wk Range 3.80 9.00
Conclusions
They Had issued a Profits Warning 10th January
I am confident that the NSE will trend higher through 2012 and that Bond Yields will trend Lower both Trends should repair some of the Damage.
I do not have Visibility on the Portfolio and therefore cannot comment on the Micro Aspect of the Situation. |
