Britam Holdings Plc · NSEKE:BRIT
Britam — FY2021 Earnings Presentation
31 slides from Britam's earnings presentation, Mar 30, 2022
Slide 1: Britam Holdings Plc FY21 Results Investor Presentation
Britam Holdings Plc FY21 Results Investor Presentation 30 March 2022 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: Content
Content Group Overview Operating Environment Strategy Execution Financial Performance Priorities & Outlook 3
Slide 4: Group Overview
Group Overview Britam Holdings Plc FY21 Results Presentation 4
Slide 5: Well Positioned Across our Footprint for Emerging Opportunities
Well Positioned Across our Footprint for Emerging 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 Britam Kenya – He
Slide 6: The Group Maintains Leadership in a Competitive Industry
The Group Maintains Leadership in a Competitive Industry # 1 insurer in Kenya by Gross Written Premiums (GWP) # 1 Life Insurer in Kenya +6% +2% +4% 233 233 208 229 74% 76% 76% 3% 77% 12% 11% 12% 11% 10% 13% 13% 14% 14% 13% 2017 2018 2019 2020 Q3-2021 Others Peer #2 Britam • Industry leadership in Co
Slide 7: Our Board Evolving in line with Business Needs
Our Board Evolving in line with Business Needs Mr. George Odo Ms. Marianne Loner Mr. Kuria Muchiru Dr. Peter K. Munga, EGH Representative of Non-Executive Chairman Non-Executive Director AfricInvest, III SPV 1 Director (Corporate Director) Ms. Caroline Kigen Mr. Edouard Schmid Mr. Jimnah M. Mbaru, M
Slide 8: Our Executive Team Aligned to Drive Customer Centricity
Our Executive Team Aligned to Drive Customer Centricity Mr. Charles Njuguna Mr. Ambrose Dabani Ms. Carol Misiko Ms. Evelyne Munyoki Group Managing Retail Director Risk & Internal Human Resources Director (Ag.) Audit Director Director Ms. Diane Korir Mr. Jackson Theuri Ms. Catherine Karita Mr. Kenend
Slide 9: Operating Environment
Operating Environment Britam Holdings Plc FY21 Results Presentation 9
Slide 10: Our Operating Environment, Macro Indicators Shaping Performance
Our Operating Environment, Macro Indicators Shaping Performance Kenya and the Regional Markets GDP Continue with Recovery Post - 2020 Mixed Market Performance by Listed Equities – NSE 20 10.2% 2,100 2021 2022 2,050 7.1% 2,000 1,950 5.4% 5.1% 5.0% 4.7% 4.3% 1,900 3.5% 3.7% 3.4% 3.7% 1,850 3.0% 2.4% 2
Slide 11: Our Operating Context, Dynamic, Demanding Adaptability and Focus
Our Operating Context, Dynamic, Demanding Adaptability and Focus Support to clients Impact of Covid-19 on Investment and intermediaries clients and businesses Climate Focus on • Economic recovery • Performance of listed performance driving uptake services equities and profitability • Increasing focu
Slide 12: Our Resilient Operations Retains Momentum and Drive Profitability
Our Resilient Operations Retains Momentum and Drive Profitability Customer-centric model in Growing topline & Investments Strategy place to deliver #OneBritam Improved Efficiency Growing Returns experience • Kenyan Businesses are now aligned along • 12.8% growth in Gross Earned premium • 15.7% growt
Slide 13: Our Business Model Continue to Focus on New Areas of Growth
Our Business Model Continue to Focus on New Areas of Growth Focus on Support to Support to Strategic Emerging Our Retail Corporate Partnerships Consumers Customers Customers • Continue to support Banca-assurance Leadership in unlocking • Trusted to support business and partners access to insurance f
Slide 14: Strategy Review
Strategy Review Britam Holdings Plc FY21 Results Presentation 14
Slide 15: EPIC 2 ..#OneBritam
Strategic Focus: The EPIC2 ..#OneBritam Strategy • We will transform Britam by putting Customer needs at the centre 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 solutions they want. •
Slide 16: Strategic Focus is about Offering Customers an EPIC2 Experience
Strategic Focus is about Offering Customers an EPIC2 Experience E Employees Build success from within and create a culture of excellence P Partnerships Cultivate trust to enhance partnership experience I Innovation Create more value to our customers Clients Put customers first, think client in all d
Slide 17: Our EPIC2 Strategy is Transformational from the Core
Our EPIC2 Strategy is Transformational from the Core Our Strategy draws on a transformational vision to grow customer base through focus on customer centricity – while strengthening our foundations Reground the Driver Customer- Centric Fix the basics and fuel the journey business Transformation Embe
Slide 18: Financial Performance
Financial Performance Britam Holdings Plc FY21 Results Presentation 18
Slide 19: Summary Results, Supported by Topline Growth & Investment Income
Summary Results, Supported by Topline Growth & Investment Income Gross earned premiums and +12.8% Up YoY, to Shs 32.5 billion Fund management fees Investment Income (Interest & dividends) +15.7% Up YoY, to Shs 10.9 billion Operating Expenses Down -15.8% YoY, to Shs 11.3 billion (Opex Ratio 44% (2020
Slide 20: Improving Top-line and Investment Income Sustaining B/Sheet Growth
Improving Top-line and Investment Income Sustaining B/Sheet Growth GEP and Fund Management Fees – Shs billions Interest and dividend Income– Shs billions +25% +16% +8% +13% 10.87 33 9.40 28 29 24 25 6.67 6.97 4.45 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 GEP Contribution Kenya and Region –
Slide 21: PBT Driven by Revenue growth and investment returns
PBT Driven by Revenue growth and investment returns 110% 195% 123% 1,065 (1,663) 4,254 112 (315) 537 (2,000) (1,243) 1,011 7,076 1,933 -4,491 5,207 -9,698 Dec-20 Invest. Dec-20 NEP Invest Comm & Net Opex & Comm Share Dec-21 Invest. Bus Dec-21 LBT Losses LBT Exc. + FM income Other inc Claims finance
Slide 22: Shift in investment strategy favors realignment to stabilize returns
Shift in investment strategy favors realignment to stabilize returns Shs billon +1% +28% Shift in Investment Strategy with outcomes +11% below:- 91.6 82.2 Fixed Income + 9.4 billion Equities + 4 billion Property - flat +153k 16.4 18.7 16.6 14.5 7.6 7.7 Deposits and Cash flat + 94k 2020 2021 Fixed in
Slide 23: Life Assurance Embedded Value Recovery Supported by Investments
Life Assurance Embedded Value Recovery Supported by Investments EV records recovery achieving an annualized growth of 6.6 Percent 636 107 664 (2,127) (389) 1,157 17,199 1,021 16,129 1 2 3 4 5 Total EV Expected Value of New Operating Operating Economic Economic Exceptional Total EV - Dec-20 Return bu
Slide 24: Regional GI Units Continue to Support Group’s Total GI Profitability
Regional GI Units Continue to Support Group’s Total GI Profitability FY 20 / 21 GEP Growth Combined GI PBT – Shs mn 595 +11% 17,644 15,827 1,817 562 33 GEP Dec 20 Growth GEP Dec 21 PBT -GI PBT -GI PBT Total GI Kenya Regions Total GI GEP Growth of 11% Total GI PBT Contribution GI Kenya +20% GI Kenya
Slide 25: Life and GI Deliver Strong Underlying Results
Life and GI Deliver Strong Underlying Results Life Business Underlying PBT GI (K) Underlying LBT 169% 187% 2,985 +68% 614 483 -91% 2,371 374 (86) 288 317 133 33 -3,437 Dec-20 FV Gain Dec- 20 Dec 2021 FV Loss Transformation Dec-21 LBT Dec- Dec-21 Transformation Dec-21 PBT Actual underlying Actual Cos
Slide 26: Key Ratios for the Group records improvement
Key Ratios for the Group records improvement Key Metric Group Life GI Kenya GI Regions FY21 FY20 FY21 FY20 FY21 FY20 FY21 FY20 Opex Ratio 44% 57% 26% 25% 35% 37% 45% 39% Underlying 32% 36% 21% 23% 31% 37% Loss Ratio N/A N/A - - 65% 65% 60% 42% Underlying 68% 68% ROE 0.4% - 53% - - Underlying - ROE 1
Slide 27: Key Properties
Key Properties Britam Tower Kilimani Serviced Britam Centre Apartments • Grade A 31 storey property with EDGE • Hotel Serviced Apartments Grade B, 8 storey & 8,600 Sq m2 certification as a green building. Launched in Q1 2022 under the building located at the upper hill • The occupancy level beat 202
Slide 28: Priorities and Outlook
Priorities and Outlook Britam Holdings Plc FY21 Results Presentation 28
Slide 29: FY22 Strategic Priorities
FY22 Strategic Priorities Seeking opportunities for Regional Expansion Growth and Expanding our distribution Expansion Growth through Partnerships & Digital and Emerging Market Consumers Continue to drive optimization of returns from our investments. Shift in Investment strategy Strengthen solvency
Slide 30: Outlook
Outlook Cautiously optimistic of continued economic recovery supported by the turnaround of businesses from the adverse effects of the pandemic but risks remain from emerging challenges. Political environment in Kenya and its impact on the macro economic indicators to remain an area of focus as we a
Slide 31: Thank You
Britam With you every step of the way Thank You