The financial services provider firm attributes this depressed financial performance to poor returns from investments in its associate Housing Finance Group (HFC) and investment losses in Wealth Management Fund LLP, a fund managed by its subsidiary Britam Asset Managers.
It deals in Insurance, Asset Management, Banking and Property.
According to its audited financial results, Britam Holdings Plc reported a pre-tax loss of US$90 million compared to a pre-tax profit of US$42.6 million in 2019.
Out of this loss, US$21 million were related to a fair valuation loss due to poor equities performance and US$18.5 million related to property impairments.
The unfavourable operating environment adversely impacted the Group’s investment in associate – HF Group Plc – contributing to the Group results, a share of loss at US$7.6 million and a reduction in the value of this investment by US$5.6 million.
The Group’s Gross Earned Premiums (GEP), and Fund Management Fees was up 4.2% to US$266.8 million from US$256.6million in 2019.
“The depressed financial performance to poor returns from investments in its associate Housing Finance Group (HFC) and investment losses in Wealth Management Fund LLP, a fund managed by its subsidiary Britam Asset Managers”
The Group’s total underlying operating costs also declined by 6.4%, attributable to prudent cost control measures.
The Group realized positive operating cash flows of US$70.4 million and significantly grew its investments in fixed income return assets.
Britam’s Balance Sheet size stood at US$1.3 billion, a 9.4% growth from 2019, while assets under management closed at US$2.3 billion.
The Group said it is finalizing the 2021-2025 strategy following the end of the 2016-2020 strategy.
It also plans to complete and commence execution of the Customer-Centric 2021-2025 transformation Strategy.
In March 2021, Britam announced a new executive team that it says will deliver enhanced service to its customers and position the company for long-term growth.
Under the new leaner structure, the company’s executive team will comprise eleven directors after dropping nine positions.