Britam issues 2018 full-year profit warning

Companies

Wednesday, January 2, 2019 17:29

By VICTOR JUMA

Insurance group Britam #ticker:BRIT has issued a profit warning for the year ended December, alerting investors that its earnings will be at least 25 per cent lower compared to the year before.

The Nairobi Securities Exchange-listed firm now expects a maximum net profit of Sh395.5 million in the review period, down from Sh527.4 million recorded in the year ended December 2017.

Britam blamed the performance on a tough insurance market and the bear run on the Nairobi bourse that has left it with billions of shillings in paper losses across counters like Equity Group #ticker:EQTY and HF Group. #ticker:HFCK

“The expected decline is mainly due to the performance of the stock market which has led to reduced returns from our equity investments; and the challenging operating environment which has adversely affected the business,” Britam said in a statement.

Other firms that have issued profit warnings include Bamburi Cement,#ticker:BAMB HF Group, Sameer Africa and insurance firm Sanlam Kenya in a trend that is likely to result in dividend cuts besides risk of further paper losses.