Britam Holdings Plc · NSEKE:BRIT
Britam — H1 2023 Earnings Presentation
23 slides from Britam's earnings presentation, Aug 31, 2023
Slide 1: Britam Holdings Plc 1H23 Results Presentation
Britam Holdings Plc 1H23 Results Presentation 31 August 2023
Slide 2: Disclaimer
Disclaimer The information is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. It is the responsibility of any person publishing, downloading or communicating the contents of
Slide 3: Contents
Contents Our Group Overview & Operating Environment Our EPIC2 ...#OneBritam Strategy Our Financial Performance Our 2023 Focus Areas 2
Slide 4: Our Group Overview
Our Group Overview 3
Slide 5: Well Positioned for Regional Growth Opportunities
Well Positioned for Regional Growth Opportunities We are a regional diversified financial services Group… Britam is a leading diversified financial services Group listed on the Nairobi Securities Exchange with a presence in seven countries. Britam Uganda Britam Rwanda •Est. 2010 •Est. 2012 •1 0 % ma
Slide 6: Our Group Board of Directors
Our Group Board of Directors Mr. Kuria Ms. Caroline Kigen Mr. George Odo Muchiru Independent Representative of Chairman Non-Executive Director AfricInvest, III SPV 1 (Corporate Director) Mr. Edouard Schmid Ms. Susan Abisola Dr. Peter K. Munga, Non-Executive Director Independent EGH Non-Executive Dir
Slide 7: Our Group Executive Management Team
Our Group Executive Management Team Mr. Tom Gitogo Mr. Charles Mr. Ambrose Dabani Group Managing Njuguna Retail Director Director Finance Director Mr. Jackson Ms. Evah Kimani Ms. Catherine Karita Theuri Partnerships and Strategy & Investor Relations Corporate Director Digital Director Director Mr. S
Slide 8: Macro Indicators: Reflects Challenging Environment
Macro Indicators: Reflects Challenging Environment USD Strengthened against currencies in our markets Key Global & Regional Equity Indices performance yet to recover 3,669 73.68% 12.60% 3,093 31-Dec-22 0.71% 0.70% 2.47% 2,332 2,390 30-Jun-23 3,669 -3.46% -3.13% 3,093 -12.63% 2,3322,390 -15.69% 1,160
Slide 9: Our EPIC2 Strategy: Progressively Stabilizing Results
Our EPIC2 Strategy: Progressively Stabilizing Results Growing Topline & Consistent Investments Strategy Growing Returns Profitability • 28% growth in interest, dividend and rent income • 31% growth in Gross Earned premium and to 7.1 bn Fund Management fees to Shs 20.7 bn • This moderates the adverse
Slide 10: Our EPIC2 …#OneBritam Strategy
Our EPIC 2 …#Onebritam Strategy 9
Slide 11: Our EPIC2 …#OneBritam Strategy: All About Customer Centricity
Our EPIC2…#OneBritam Strategy All About Customer Centricity • We are transforming Britam by putting Customer needs at the center of everything we do • Our Customers will experience “One Britam”; We will deploy deep customer insights and data analytics to understand their needs and provide the soluti
Slide 12: Our EPIC2 …#OneBritam Strategy: All About Transformation, Growth
Our EPIC2 ...#OneBritam Strategy: All About Transformation, Growth Our Strategy draws on a transformational vision to grow customer base through focus on customer centricity – while strengthening our foundations Reground the business Fix the basics and fuel the journey Driver Customer- Centric Trans
Slide 13: The 2021-2025 Strategy Client Experience (CX)
The 2021 -2025 Strategy Client Experience (CX) Vision: We will Serve with Empathy & Care and Provide an EPIC2 Experience E P I C2 Employees Partnerships Innovation Clients Conduct Build success Cultivate trust Create more Put customers Treating from within and to enhance value to our first, think Cu
Slide 14: Our Financial Performance
Our Financial Performance 13
Slide 15: PBT Growth: Positive Impact of Topline & Investments
PBT Growth: Positive Impact of Topline, & Investments Insurance Revenue (IFRS17) +34% up, to Shs 16.6 billion Investment Income (Interest & Dividends, Rent) +28% Up, to Shs 7.1 billion Fair Value Losses (From Yield Curve Shift) -21% down to Shs 1.8 billion Profit Before Tax +193% up, to Shs 2.38 bil
Slide 16: Top-line, Investment Income: On a Positive Trend
Top-line, Investment Income: On a Positive Trend Growth in GEP and Management Fees – Shs bn (IFRS 4) Interest and Dividend Income – Shs bn 20.7 +12.6% 7.1 +31.4% +27.1% 15.8 5.5 +28.3% 14.1 14.9 4.9 12.9 3.6 2.7 H12019 H12020 H12021 H12022 H12023 H12019 H12020 H12021 H12022 H12023 Insurance Revenue
Slide 17: General Insurance: Growing Topline & Profitability
General Insurance: Growing Topline & Profitability GI - Kenya GI – International GI - Combined Insurance Revenue – Shs bn 0.70 +18.8% 0.70 2.52 +39.5% 2.52 +56.9% 6.95 4.42 11.37 3.72 8.15 4.43 30-Jun-22 change 30-Jun-23 30- change 30- 30- GI-Kenya GI-Int’l 30- Jun-22 Jun-23 Jun-22 Jun-23 0.08 -22.2
Slide 18: Life Insurance: Remains a Core Driver of Profitability
Life Insurance: Remains a Core Driver of Profitability Life Insurance Revenue – Shs bn Life Insurance PBT – Shs bn 0.98 +23.1% 5.23 4.25 0.46 +45.5% 1.47 1.01 30-Jun-22 Growth 30-Jun-23 30-Jun-22 Growth 30-Jun-23 Life business has experienced significant growth driven by strong uptake of products: -
Slide 19: FY23 Strategy Focus Areas
FY23 Strategy Focus Areas 18
Slide 20: FY23 Strategic Focus Areas
FY23 Strategic: Focus Areas • Growth through Partnerships & Digital and Emerging Customer Growth and Expansion Market Consumers •Optimize the current IT platform and continue with the Leveraging on technology transformation journey in line with the new business operating model Embedding Sustainabili
Slide 21: Thank You
Britam ith you every step of the way THANK YOU
Slide 22: Appendix 1 - PBT Contribution: By Business Units
Appendix 1- PBT Contribution: By Business Units PBT Contribution by Business Unit– Shs mn / % PBT Change by Business Unit– Shs mn 62% 37% 12% 11% 279 267 2,382 2,506 2,382 -4.9% 261 151 14 896 1,474 (Shs 124 mn) Life PBT GI - Kenya GI -Int’l Others Total PBT IFRS 4 Life* GI - GI - Int’l IFRS 17 PBT
Slide 23: Appendix 2 - Shareholders' Equity: IFRS 4 to IFRS 17 Change
Appendix 2 - Shareholders’ Equity: IFRS 4 to IFRS 17 Change Reconciliation of Britam Holdings Net Assets – (Shs mn) 6,977 6,604 23,308 1,606 870 1,020 23,545 162 14 +1.0% +233 mn IFRS 4 Discounting Release CSM Net Risk Net Loss Other Non- IFRS 17 Shareholder of IFRS 4 Adjustment Component Adjustment