Britam’s first-half numbers show growth in both underwriting and investment lines despite a tough backdrop. Insurance revenue rose 11 percent to KES 19.7 billion, a sign of steady momentum in both Life and General businesses. Investment returns also improved, with interest and dividends up 16 percent to KES 10.6 billion, supported by portfolio realignment and prudent asset allocation.
Management flags two headwinds that capped upside. Rising claims costs, which many underwriters across Kenya have faced this year, and a declining yield curve. Falling yields typically compress reinvestment income on fixed-income portfolios. The combination helps explain why profit before tax landed at KES 2.5 billion even as top-line growth was solid.
Balance sheet and capital position
Britam closed the period with total assets of KES 225.0 billion, up 8 percent. Shareholders’ equity increased to KES 31.2 billion from KES 29.5 billion at year-end 2024, reinforcing capital strength and providing room to keep investing in digital capabilities and product innovation. The Board opted against an interim dividend, prioritising capital retention for growth and long-term shareholder value.
Strategy check, digital and regional growth
The results land in the final year of Britam’s 2021 to 2025 strategy, which centres on customer value, digital adoption and operational efficiency. On the ground, Britam’s bets have included embedded and partnership-led distribution aimed at affordability and reach. We have previously covered Britam’s tie-ups that push inclusion, for example with Airtel Money for low-cost covers and with banks targeting SME health policies.
The innovation lens also includes venture activity. Earlier this year Britam BetaLab invested in Oye, a fintech working to digitise insurance and fuel access for Kenya’s two million boda riders. That move aligns with a wider shift to usage-based, micro-premium and embedded models tailored to everyday risks.
EV insurance enters the mainstream
Britam’s General Insurance unit recently introduced an EV insurance product, placing the Group in the middle of Kenya’s accelerating e-mobility shift. That market is maturing fast. Local assembly plans by MojaEV, fresh capital for ARC Ride’s battery-swap network and BasiGo’s inter-city electric matatu pilot are expanding the addressable base for motor policies that account for battery value, charging risks and new repair economics.
Outlook for H2 2025
Management is guiding for a stronger second half if rates stabilise and macro conditions improve. For insurers, the watch-list includes claims inflation, motor repair costs, health utilisation trends and the pace of yield moves. Product-market fit in fast-growing niches like EVs and embedded micro-covers could support premium growth, while process automation in underwriting and claims should protect expense ratios.
Why this matters
Britam’s 60th anniversary year is landing with disciplined growth, a stronger equity base and more digital plumbing. In a competitive market, the ability to price risk accurately as mobility electrifies and to distribute at lower cost through partnerships may be the differentiators. Recent moves by global and regional insurers also point to a market in expansion, particularly in health, where demand remains high.
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