Britam Holdings Plc · NSEKE:BRIT
Britam — FY2022 Earnings Presentation
25 slides from Britam's earnings presentation, March 2023
Slide 1: Britam Holdings Plc FY2022 Results Investor Presentation
Britam Holdings Plc FY2022 Results Investor Presentation March 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. Josephine Ossiya Dr. Peter K. Munga, Non-Executive Director Independent EGH Non-Executive
Slide 7: Our Group Executive Management Team
Our Group Executive Management Team Mr. Tom Gitogo Mr. Charles Mr. Ambrose Group Managing Njuguna Dabani Director Finance Director Retail Director Mr. Jackson Ms. Evah Kimani Ms. Catherine Theuri Partnerships and Karita Corporate Director Digital Director S trategy & Investor Relations Director Mr.
Slide 8: Macro Indicators: Reflects a Challenging Operating Environment
Macro Indicators: Reflects a Challenging Operating Environment USD Strengthened against currencies in our markets Key Global & Regional Equities Indices perform poorly in 2022 36.7% 3,693 3,558 31 Dec 2021 31 Dec 2022 -1.3% -1.9% 2,305 2,332 -11.9% 1,025 1,062 1,027 -14.7% -17.7% 815 -23.4% -26.1% 1
Slide 9: Our EPIC2 Strategy: Progressively Stabilizing Profitability
Our EPIC2 Strategy: Progressively Stabilizing Profitability Growing Topline & Consistent Investments Strategy Growing Profitability Returns • 2.7%growth in Gross Earned premium and •19.6% growth in interest, dividend income Management fees to Shs 33.4 bn •Moderates the adverse impact of shift in the
Slide 10: Shifting of Investment Strategy: Focus on Growing Interest & Dividend income
Shifting of Investment Strategy: Focus on Growing Interest & Dividend income Group Investment Portfolio+3.4% Increased Focus on Investments Associates • Growth despite significant yield curve shift related fair value losses 135 130 Cash & cash equivalents 2021 2022 Equities • Increased allocation to
Slide 11: Our EPIC …#Onebritam Strategy
Our EPIC 2 …#Onebritam Strategy 10
Slide 12: Our EPIC2 …#OneBritam Strategy
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 13: 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 14: Client Experience (CX) Vision: Serve with Empathy & Care
The 2025 -2021 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 cl
Slide 15: Our Financial Performance
Our Financial Performance 14
Slide 16: PBT Growth: Driven by Topline, Investments & Opex Containment
PBT Growth: Driven by Topline, Investments & Opex Containment Gross Earned Premiums And Fund Management Fees +2.7% Up, to Shs 33.4 billion Investment Income (Interest, Rent & Dividends) +19.6% Up, to Shs 13.0 billion Fair Value Losses (From Yield Curve Shift) +317% up to Shs 3.9 billion Down -26.1%,
Slide 17: Top-line, Investment Income: On a Positive Trajectory
Top-line, Investment Income: On a Positive Trajectory Growth in GEP and Management Fees – Shs bn Interest and Dividend Income – Shs bn 18.2% +19.6% 7.5% +2.7% 13.01 33.40 32.51 10.87 28.82 9.40 27.67 6.97 24.99 6.67 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Gross Earned Premiums by business
Slide 18: 2022 Vs 2021 PBT: Key Impacts from Opex, Topline & Investments
2022 Vs 2021 PBT: Key Impacts from Opex, Topline & Investments +192% 625 (2,728) 2,952 283 3,116 287 289 69 1,011 FY2021 Opex & finance NEP + Invest Comm & Net Comm Share of FY2022 PBT costs Other inc FM income Claims & expense Associates PBT Interest Key movements on PBT: • Reduction in operating e
Slide 19: Life Embedded Value (EV): Impacted by Macros, Support for future Growth
Life Embedded Value (EV): Impacted by Macros, Support for future Growth EV records a minimal decline of 4.8 Percent on worse than expected economic environment and business focus on foundation for future growth (86) (62) 1,355 (1,743) 1,196 1,094 (2,597) 17,199 1 2 3 4 5 16,356 Total EV - Expected V
Slide 20: Life Performance: Rising Yields Lower PBT
Life Performance: Rising Yields Lower PBT Life GEP – Shs bn Life PBT– Shs bn +9% -7% 1.18 14.41 3. 13.84 4 8 -0.17 2.37 2.20 FY2021 FY2022 FY2021 Change FV FY2022 PBT Growth PBT PBT Exc. FV Losses PBT Losses • Growth in gross earned premiums driven by increased • Life PBT impacted negatively by fair
Slide 21: General Insurance: Continue to Support Group Profitability
General Insurance: Continue to Support Group Profitability GI – Kenya GI – Regions Combined GI +5% -6% -0.1% 0.51 8.13 0.53 0.51 0.53 9.5 10.01 7.60 17.63 17.61 GEP – Shs bn FY2021 FY2022 FY2021 Change FY2022 GI – GI- Change FY2021 FY2022 Kenya Regions +15x +143% +245% 0.53 1.52 0.58 0.99 0.58 PBT –
Slide 22: Key Ratios: Majorly inline with Overall Performance
Key Ratios: Majorly inline with Overall Performance Key Metric Group Life GI Kenya GI Regions 2022 2021 2022 2021 2022 2021 2022 2021 Opex Ratio 32% 44% 21% 26% 30% 35% 47% 45% Loss Ratio - - - - 68% 68% 51% 60% 2022 2021 2022 2021 Solvency- Life - - 154% 119% 152% 149% - - & GI (K) 21
Slide 23: FY23 Strategy Focus Areas
FY23 Strategy Focus Areas 22
Slide 24: FY23 Strategic: Focus Areas
FY23 Strategic: Focus Areas • Seeking opportunities for Regional Expansion• Growth and Expansion • Growth through Partnerships & Digital and Emerging Market Consumers • Optimize the current IT platform and continue with the Leveraging on technology transformation journey in line with the new busines
Slide 25: Thank You
With you every step of the way THANK YOU