This article is part of a series sponsored by Britam
Britam defines itself as a diversified, financial service Group in the country offering a wide range of Insurance and Asset Management services as its core business.
The Group traces its origins to the 1920’s when a firm, now as British American Insurance Company, was established in the Bahamas. The company made its entrance into the Kenyan market in 1965 and much later begun expanding into the East African region. At the time, it was like any other insurance companies and stayed that way for many years, before some leading businessmen and entrepreneurs took an interest in the company. They include luminaries such as Dr. James Mwangi, of Equity Bank, Jimnah Mbaru of Dyer and Blair and Peter Munga also from Equity Bank, just to mention a few. They gave Britam a new direction.
Let’s look at Britam’s achievements in the region.
British-American Insurance Company has evolved over the years since its inception in Kenya in 1965. The company has grown from a home service based company to its current position as a financial services provider. The Group has operations in life insurance, health insurance and property/casualty insurance products as well as unit trust and asset management services.
The Groups insurance business has the largest life business in Kenya with a share of 15.2 per cent in 2009.
The Group also has significant investments in blue chip companies such as Equity Bank and Housing Finance. The Group holds an 11.03 per cent strategic investment in Equity Bank and a 16.57 per cent equity stake in the Housing Finance Company of Kenyan Limited.
The company has grown. The total gross premium as at 31st December 2010 was KES 4.3 billion while the total assets were KES 15.4 billion. Investment income was over KES 4.7 billion by 25th December 2010.
According to the Citizen TV Who own’s Kenya news segment, Britam’s asset base has grown to KES 26 billion, with its market capitalization now standing at KES 12.2 billion.
As at September 2012, Britam had 1.89 billion issued shares, selling at an average of KES 6.50. Last year’s I.P.O saw the number of shareholders increase to 28,000.
Britam presently manages assets worth close to KES 20 billion belonging to some 6,500 different clients.
The group has expanded and now has interests in Ugnada with proposed new investments in Tanzania, South Sudan, Rwanda and other regional markets. Britam’s entry into the regional market will carried out either through Green field or Brown field investments
Green field investments, according to Investopedia, is a form of foreign direct investment where a parent company starts a new venture in a foreigh country by constructing new operational facilities from the ground up. Brown field investment on the other hand where a company purchases or leases existing production facilities to launch a new product activity.
British-American Insurance Company Kenya has won several awards. Some of these include:
- During the Think Business Insurance 2010 awards, it was the winner of the ICT Award, first runner up of Life Insurer of the year, Second runner up of Composite Underwriter of the year.
- The group also won in the 2009 AKI top Agents awards.
- In the Capital Markets Awards 2011, the Group won the Unit Trust of the Year 2011 and the Fund Manager of the Year 1st Runner-up 2011.