Britam Holdings PLC · NSEKE:BRIT
Britam — FY2020 Earnings Presentation
24 slides from Britam's earnings presentation, Apr 29, 2021
Slide 1: Britam Holdings Plc FY20 Results Presentation
Britam Holdings Plc FY20 Results Presentation 29 April 2021 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 Overview ○ Operating Environment Highlights Group Managing Director ○ Strategic Focus The Numbers ○ Group Financial Performance Finance Director ○ Select BUs Financial Performance Strategy, Outlook & Focus for 2021 Group Managing Director 3
Slide 4: Overview
Overview Britam Holdings Plc FY20 Results Presentation | April 2021 4 4
Slide 5: Britam at a Glance
Britam at a Glance Britam is a leading diversified financial services group listed on the Nairobi Securities Exchange with a presence in seven countries Est Offices Staff Kenya 1965 32 642 The group offers a wide range Uganda 2010 9 64 of financial solutions in:- o Life Assurance, Rwanda 2012 3 41 o
Slide 6: Our Operations Remained Resilient in a Tough Year
Our Operations Remained Resilient in a Tough Year Unprecedented Resilient Operating Strong Operating Disruption and Crisis Results Cashflow Generation • Lives and livelihoods adversely impacted • Growth in Group Topline especially • Ahead of peers in operating • Volatility in local and global capita
Slide 7: Weak Macroeconomic Performance
Weak Macroeconomic Performance Kenya and the Regional Markets GDP (%) Bond Yields(%) Supported by Flight from Equities Weak Performance by Listed Equities Appreciation of the USD against KES / UGX 7 Source: World Bank, NSE, JSE, CBK
Slide 8: Positive Impact of our Resilient Response to the Crisis
Positive Impact of our Resilient Response to the Crisis Navigation through the crisis Year 2021 + Financial Operational Strategic Shift Focus on Performance Operational Continuity Focus on Roll out of 2021-25 Customer Centric Strategy by 1H21 Investment Returns optimization Health and safety of our
Slide 9: Our Strategic Focus
Our Strategic Focus Britam Holdings Plc FY20 Results Presentation | April 2021 9
Slide 10: Key Learnings from our 2016 – 2020 Strategy
Key Learnings from our 2016 – 2020 Strategy Based on financial performance to date, we undertook an analysis of key areas of improvement going forward. The baseline analysis, yielded the following results: Need to build on Ground in customer Deliver a truly successful stories centric vision transfor
Slide 11: Critical Imperatives to Support our Transformative Strategy
Critical Imperatives to Support our Transformative Strategy Reground business Transform for future Enable the journey Customer at the heart Led by new segment units Address performance challenges Organise for the future Optimise approach to Turnaround key cost customer drivers Embed customer- Forge
Slide 12: The Numbers
The Numbers Britam Holdings Plc FY20 Results Presentation | April 2021 12
Slide 13: Strong Operating Results with Growing Revenue and Assets
Strong Operating Results with Growing Revenue and Assets GEP & Fund Management Fees – Shs bn CAGR Investment income – Shs bn 35.00 CAGR 8% 11% 9.00 30.00 28.82 7.93 27.67 8.00 24.99 6.97 24.06 7.00 6.67 25.00 21.22 6.00 5.22 20.00 5.00 4.45 15.00 4.00 3.00 10.00 2.00 5.00 1.00 - - 2016 2017 2018 201
Slide 14: GI Performance Contributing Profitably to the Group
GI Performance Contributing Profitably to the Group Group Life GI Regions GI Kenya Revenue (Gross Earned Premium) vs 2019 Shs 28.2 billion (+4.2%) Shs 12.4 billion (-10.6%) Shs 7.9 billion (+50%) Shs 8.0 billion (-1%) Profit/(Loss) Before Tax – Shs billion -312% -195% +20X +222% 4.6 3.7 0.80 0.4 0.0
Slide 15: The Positive and the Negative Movements on the Results
The Positive and the Negative Movements on the Results Results Positively impacted by 1 Growth in revenue and investment income And by 6% drop in Underlying Opex. Adverse impact from: 2 Fair value losses ○ Realized Shs 71m (2019 : 478m) ○ Unrealized Shs 1,864m (2019: 4,300m) 1 2 3 4 5 6 ○ HF Impairm
Slide 16: Strong Operating Cashflow Generation Ahead of Peers
Strong Operating Cashflow Generation Ahead of Peers Strong operating cashflow generation Britam and Listed Peers FY20 5 Yr Operating Cashflows - Shs bn Operating Cashflows – Shs bn Cash generation / Use in 2020 – Shs bn CAGR 11% 8.98 7.94 7.67 7.67 7.67 (9.59) 5.02 4.58 7.50 1.81 2.31 7.58 1.49 1.49
Slide 17: Select BUs Financial Performance
Select BUs Financial Performance Britam Holdings Plc FY20 Results Presentation | April 2021 17
Slide 18: Life Embedded Value Remained Resilient Through Crisis
Life Embedded Value Remained Resilient Through Crisis EV Recorded a marginal drop in annualized return at negative 0.6% in spite of the tough operating environment Embedded Value 18.0 16.9 30.0% 16.1 16.0 25.0% 13.8 873 -789 14.0 13.0 1,214 14 -1,516 12.0 11.1 20.0% 16,923 10.0 15.0% -68 171 -693 16
Slide 19: Regions GI Key Driver of General Insurance Revenue & Profits
Regions GI Key Driver of General Insurance Revenue & Profits Gross Earned Premium (GEP) – Shs million GI Profit Before Tax (PBT) – Shs million +19.1% +548% +2,075% -1% +50% +222% Contribution to GEP Growth (%) Contribution to GI PBT Growth (%) GEP up +19% PBT up +548% Kenya +254% *Regions +19.7% Ken
Slide 20: Underlying Key Performance Indicators
Underlying Key Performance Indicators Key Metric Group Life GI Regions GI Kenya 2020 2019 2020 2019 2020 2019 2020 2019 Key Highlights Opex Ratio 37% 39% 24% 26% 39% 61% 37% 41% Improved underlying Opex ratio across the business Loss Ratio - - - - 42% 44% 65% 67% Improved Loss ratios for GI Regions
Slide 21: Focus for 2021 & Strategy going forward
Focus for 2021 & Strategy going forward Britam Holdings Plc FY20 Results Presentation | April 2021 21
Slide 22: Outlook and Focus for 2021
Outlook and Focus for 2021 In spite of the adverse operating environment in 2020 and the drop in financial performance, the business remains robust. We will continue to build momentum as activities increase in our markets. We expect a modest economic recovery across our footprint. Investment Operati
Slide 23: Delighting the Customer
Going Forward 2021 – 2025 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. We will leverage our
Slide 24: Thank You
Thank You Kenya | Uganda | Tanzania | Rwanda | South-Sudan | Mozambique | Malawi