Britam Holdings PLC · NSEKE:BRIT
Britam — H1 2020 Earnings Presentation
35 slides from Britam's earnings presentation, 2020
Slide 1: Britam Holdings Plc H1FY20 Results Presentation
Britam Holdings Plc H1FY20 Results Presentation 1
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 Section 1 • Company Profile • Macroeconomic Review and Business Environment Section 2 • Overview of our Strategic Performance Section 3 • Financial Performance Review • Business Units Performance Review Section 4 • Strategic Priorities • Business Outlook & Focus for H2-2020 3
Slide 4: Company Profile
Company Profile 4
Slide 5: About Britam Holdings Plc
About Britam Holdings Plc 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 so
Slide 6: Vision, Mission and Values
Vision, Mission and Values “Providing you with financial security EVERY MISSION STEP OF THE WAY” “To be the LEADING diversified financial services VISION company in our chosen markets across Africa” BRAND “With you every step of the way” POSITION Respect Innovation VALUES Integrity Customer Focus 6
Slide 7: Group Structure
Group Structure Britam Holdings Plc Asset Property Portfolio Insurance Management Investments Britam Asset Britam Asset Britam Properties Britam Properties HF Group Plc Equity Group Managers (Kenya) Managers (Uganda) (Kenya) Limited (Uganda) Limited 48.2% Holdings Plc Limited 100% 100% 100% 6.9% 100
Slide 8: Macroeconomic Review and Business Environment
Macroeconomic Review and Business Environment 8
Slide 9: Macro Economic Review
Macro Economic Review IMF projects the outlook for 2020 for sub-Saharan Africa to be considerably worse than was anticipated in April and subject to much uncertainty. Economic activity this year is now projected to contract by some c.3.2%, reflecting a weaker external environment and measures to con
Slide 10: Our Business Environment
Our Business Environment As a leading diversified financial services group, our different businesses are exposed to varied macro economic and industry specific factors. The key highlights in the period under review includes; • Stock market performance and investment returns • Dynamic regulatory envi
Slide 11: Overview of our Strategic Performance
Overview of our Strategic Performance 11
Slide 12: Banking on Our Resilience
Banking on Our Resilience Even as Covid-19 continues to adversely impact our operating environment and our performance especially due to; • The decline in the stock markets, and • The depressed property market. We continue to witness significant resilience in our business with our operating results
Slide 13: Overview of Strategic Performance
Overview of Strategic Performance Group PBT - Shs mn Life PBT - Shs mn Int’l GI PBT – Shs bn GI Kenya PBT - Shs mn 2,426 575 2,276 Profitable growth 209 166 92 H1 FY19 H1 FY20 H1 FY19 H1 FY20 (1,108) H1 FY19 H1 FY20 H1 FY19 H1 FY20 (2,308) • Continued to enable end to end customer servicing through
Slide 14: Financial Performance Review
Financial Performance Review 14
Slide 15: Commentary on the H1 FY20 results
Commentary on the H1 FY20 results The Group recorded a loss before tax of Shs 2.3 billion for the six month period to 30 June 2020, compared to a profit before tax Shs 2.4 billion for the same period in 2019. This reflects the significant adverse impact of Covid-19 on the operating environment, the
Slide 16: Summary Group Consolidated Statement of Income
Summary Group Consolidated Statement of Income Income Statement - Shs millions Jun-20 Jun-19 Change Commentary 1 Gross earned premiums 13,762 12,616 +9% Growth in line with our rising 1 premiums especially from Net earned premiums 11,389 10,811 +5% international general insurance businesses. Fund ma
Slide 17: Summary Group Consolidated Statement of Financial Position
Summary Group Consolidated Statement of Financial Position Shs millions Jun-20 Dec-19 Commentary Shareholders' funds 25,060 29,296 Decline in total equity in line with Non-controlling interest 80 81 1 year to date overall performance. 1 Total equity 25,140 29,377 Represented by: Growth in investment
Slide 18: Strong Operating Results Supporting Cash flow Generation
Strong Operating Results Supporting Cash flow Generation H1 Net Operating Cash flows – Shs bn 3.73 3.35 Commentary 2.97 2.64 • Growing operating cash flows with CAGR since June 2016 of +14%. 2.22 • Strong YoY growth (+11%) in operating cash flows in line with strong operating results. Supported by o
Slide 19: Business Units Performance Review
Business Units Performance Review 19
Slide 20: Life Assurance Company Kenya
Life Assurance Company Kenya Income Statement – Shs million Jun-20 Jun-19 Change Commentary 1 Gross earned premiums 6,656 6,478 +3% Marginal growth attributed to the 1 current unfavorable operating Net earned premium 6,395 6,302 +1% environment. Commissions earned 128 80 +60% Total Revenue 6,523 6,3
Slide 21: Life Assurance Embedded Value
Life Assurance Embedded Value 30-Jun-20 31-Dec-19 % Growth Commentary Shs ’000 Shs ’000 From Dec -19 Adjusted Net Worth (ANW) 10,138,392 10,707,974 • Strong CAGR growth of 13% since 2016 -5% Present Value of Future Profits • H1 FY20 Growth in spite of;- 8,200,144 (PVFP) 7,367,660 11% Cost of Require
Slide 22: Life Assurance Embedded Value – Positive Value of New Business
Life Assurance Embedded Value – Positive Value of New Business Commentary • Positive value of New Business written in the period under review - Business was written on a profit making basis. • Positive operating experience variance reflects actual experience during the year being generally better th
Slide 23: General Insurance Kenya Performance
General Insurance Kenya Performance Income Statement – Shs million Jun-20 Jun-19 Change Commentary 1 Gross earned premiums 3,884 3,735 +4% 1 Marginal growth attributed to the Net earned premium 3,052 3,049 <1% current unfavorable operating Commissions earned 211 186 +13% environment. Total Revenue 3
Slide 24: Britam International Insurance Performance
Britam International Insurance Performance Income Statement – Shs million Jun-20 Jun-19 Change Commentary 1 Gross earned premiums 3,221 2,403 +34% 1 Growth on account of improved Net earned premium 1,942 1,460 +33% revenues especially in South Commissions earned 296 243 +22% Sudan and Mozambique mar
Slide 25: Regions General Insurance (GI) Businesses Supporting Revenue Growth
Regions General Insurance (GI) Businesses Supporting Revenue Growth Total H1- GI Gross Earned Premium (GEP) – Shs million Total H1- GI Profit Before Tax– Shs million +15.8% 7,819 +146% 6,138 +175% +4% +34% 741 3,935 575 3,735 3,884 +80% 2,403 301 166 209 92 GI Kenya GI Regions* GI Total GI Kenya GI
Slide 26: Asset Management Remains Resilient
Asset Management Remains Resilient AUM – Shs billion CAGR +22% • Strong growth of CAGR since 2016 at 22% • Reflection of trust in Britam which continue to 250 227 220 grow funds under management: A strong 200 foundation for current and future performance. 150 146 • Growth sustained by net flows from
Slide 27: Optimization of Group Total Assets for Returns
Optimization of Group Total Assets for Returns We continue to optimize returns from our assets…. Group Assets – June 2020 Group Consolidated Balance sheet – 2020 – Shs milion Assets 31-Dec-19 30-Jun-20 Growth Group Assets Exposure Money Market 7,839 10,279 31.1% NRBA Equities 12.6% 9.7% Fixed Income
Slide 28: Strategic Priorities
Strategic Priorities
Slide 29: Strategic Priorities - Optimization of Our Assets
Strategic Priorities - Optimization of Our Assets Focus remains on continuing to optimize our assets (investments) in order to delight our customers and grow. Our areas of priority remains; Continued Customer Service Empowerment & Safety Excellence of our Teams Customer and Market • Digitization - F
Slide 30: Business Outlook and Focus for H2-FY20
Business Outlook and Focus for H2-FY20 In spite of the adverse operating environment in the first half of the year, and the expectation that this will flow to the second half, the business remains robust and we will continue to build momentum as activities increase. The focus will be on among other
Slide 31: Thank You
Thank You e 5 @ = 3 a £ 2 S 3 3 $ 3 = CS 2 the a
Slide 32: Appendices
Appendices
Slide 33: Appendix I: Detailed Group Statement of Income
Appendix I: Detailed Group Statement of Income Income Statement – Shs ‘000 Jun-20 Jun-19 Change (%) Gross earned premium and fund management fees 14,055,644 12,929,769 9% Less: Reinsurance premium ceded (2,373,654) (1,805,116) 31% Net earned revenue 11,681,990 11,124,653 5% Investment income 3,636,7
Slide 34: Appendix II: Life Market Share Leadership
Appendix II: Life Market Share Leadership 34 34
Slide 35: Appendix III: Property Highlights
Appendix III: Property Highlights Britam Centre Britam Tower Kilimani Serviced Apartments Grade B, 8 storey & 8,600 Sq m2 Grade A 31 storey property with EDGE The property is set to open by Q1 building located at the upper hill certification as a green building with 2021. area of Nairobi. materials,