Britam Holdings

Last updated

Britam Holdings PLC
Type Publicly Traded Company
KN: BRIT
Industry Insurance, Investments, Property, Financial services
Founded1965
Headquarters Britam Tower, Upper Hill
Nairobi, Kenya
Key people
Mohamed Said Karama, Acting Chairman [1]
Tavaziva Madzinga , Group Managing Director [1]
Products
List
RevenueIncrease2.svg KES: 27.667 billion (2019)
Increase2.svg KES: 36.4 billion (2019)
Increase2.svg KES: 3.73 billion (2014)
Total assets Increase2.svg KES: 125.244 billion (2019)
Total equity Increase2.svg KES: 22.67 billion (2017)
Website www.britam.com

Britam Holding PLC is a leading diversified financial services group and is listed on the Nairobi Securities Exchange. The group has presence in seven Africa countries in Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique and Malawi. [2]

Contents

Britam offers a wide range of financial products and services which include: Asset Management, Life Assurance, Retirement Planning, General Insurance, Health Insurance, Banking and Property Insurance. [2]

Overview

Britam's headquarters are in Nairobi, Kenya, with subsidiaries in Kenya, Uganda, South Sudan, Rwanda, Tanzania, Malawi, and Mozambique. The flagship company of the group is the Britam Holding Plc, commonly referred to by its brand name Britam Kenya. [3]

According to the Insurance Regulatory Authority report released in 2019, Britam Life Assurance was ranked first in market share with 24.7 percent.

History

1965-1999

The group's operations commenced in Kenya in 1965 with the opening of the first office in Nairobi as a foreign branch of British-American Insurance Company Limited, headquartered in the Bahamas. A local company was incorporated on 14 November 1979 as British-American Insurance Company (Kenya) Limited under the Companies Act as a private limited liability company following a government directive that all branches of foreign owned insurance companies must be incorporated locally. By this time, the Company had established nine branches across Kenya. This local incorporation represented the first step in the localisation of the Company. In 1984, local Kenyan investors acquired 33.33 percent of the shareholding in line with government directives. [3]

2000-2009

In 2004, the group incorporated British-American Asset Managers whose core business was the provision of Investment advisory and Fund management services. The company offers investment funds, structured as Unit trusts and discretionary Portfolio management, to both institutions and private clients. During the same year, the group restructured, creating a non-operating holding company. [3] Also in 2004, Britam acquired a strategic equity stake in the Equity Group Holdings Limited. Britam made its first equity acquisition in Housing Finance Company of Kenya (the largest mortgage finance provider in East Africa) in 2007. [4]

2010-To date

2010 marked Britam's regional expansion commencing with the group's expansion into Uganda with the incorporation of Britam Insurance Company (Uganda) Limited, which commenced business on 24 November 2010, following the issuance of an insurance license by the Uganda Insurance Commission. [5]

In 2011, the shares of British-American Investments Company were listed on the Nairobi Securities Exchange through an undersubscribed initial public offering. This was largely the result of risk-averse foreign investors shunning the IPO because of the Eurozone crisis and a sluggish U.S economy. [6] Britam Insurance Company (South Sudan) Limited was incorporated in February 2012 and is licensed to underwrite all classes of life and non-life insurance. [7] In Rwanda, Britam Insurance Company (Rwanda) Limited, was incorporated and licensed in 2013 by the National Bank of Rwanda. [8] [9]

On 9 December 2013, the British-American Investments Company entered into a definitive Share Purchase Agreement with Royal Ngao Holdings to acquire its 99 percent shareholding in Real Insurance Company Limited, a deal that was valued at KSh1.4 billion (approximately US$16 million then). 60% of the sales price was paid in cash and 40% was paid by issuance of new shares in British-American Investments Company. Real Insurance was licensed insurer carrying out General insurance business in Kenya, Tanzania, Malawi, and Mozambique. It had been a player in the Kenyan insurance sector since 1910. [10] This transaction led to the expansion of Britam to Tanzania, Malawi, and Mozambique. Britam and Real Insurance only had parallel insurance businesses in Kenya. The Kenyan businesses would be consolidated. The acquisition of Real Insurance was approved by the shareholders of Britam on 19 February 2014. [11]

In April 2014, the group announced its intention to acquire 30 percent of Continental Re Kenya Limited, a fully owned subsidiary of Lagos-based Continental Reinsurance Plc., in a deal valued at KSh300 million (approximately US$3.4 million). This acquisition was in a bid for the group to consolidate its market share and broaden revenue sources. [12] The acquisition will be funded by a planned bond issue. [13]

On 30 June 2014, British-American Investments Company served a takeover notice on the board of directors of the Housing Finance Company of Kenya to acquire the 24.76 percent shareholding that Equity Group Holdings Limited (EBG) held in the mortgage lender at that time. [14] This transaction was completed on 31 December 2014 and it increased Britam's stake in Housing Finance to 46.1 percent. [15]

In June 2015, the shareholders adopted a resolution to change the company name from British-American Investments Company to Britam Holdings Limited. [16]

Subsidiaries and investments

The companies that compose the Britam Holdings Limited are organised into four divisions and include, but are not limited, to the following: [17]

Insurance

Asset Management

Property

Banking Holding

Ownership

In September 2017, the International Finance Corporation (IFC), an arm of the World Bank Group, concluded the acquisition of a 10.37 percent stake in Britam, thereby gaining a seat on the company's board of directors. [21]

The shares of the stock of Britam Holdings Limited are traded on the Nairobi Stock Exchange, under the symbol: BRIT. As of 31 December 2017, the shareholding in the company's stock, was as depicted in the table below: [22] [23]

Britam Holdings Limited Stock Ownership
RankName of OwnerPercentage Ownership
1AfricInvest III SPV 117.55%
2Equity Holdings Limited16.05%
3Standard Chartered Nominees Resident A/C Ke00381915.79%
4Standard Chartered Nominees Non-Resident A/C Ke113969.14%
5Standard Chartered Nominees Non-Resident A/C Ke117528.88%
6Mr. Jimnah M. Mbaru7.72%
7Dr. Benson I. Wairegi4.01%
8Dr. Peter K. Munga2.97%
9Dr. James N. Mwangi2.97%
10Standard Chartered Nominees Non-Resident A/C Ke100851.56%
11Other Local & International Investors13.36%
Total100.00%

Governance

Britam Holdings is governed by an eleven-person Board of Directors with Kuria Muchiru serving as the Chairman of the group , and Tom Gitogo as the Group Managing Director . [1]

Britam Tower

Britam Tower is a 31-storey building located along Hospital Road in Upper Hill, Nairobi which serves as the headquarters for the company. The tower is known for its prism-like shape and an adjacent 15-storey parking. Standing at 200m, it is the tallest building in Kenya and the third tallest in Africa. [24] The tower has wind turbines that generate power for parts of the building. The complex comprises offices, banking halls, restaurants and retail stores. [25]

Controversies

Bramer Banking Corporation Scandal

In April 2015, a US$693 million Ponzi scheme in Bramer Banking Corporation hit Britam's largest shareholder British American Investment Company Mauritius Limited (BAIC). [26] [27] The Group moved swiftly to inform the public that the ponzi scheme did not affect their operations. [28] However, the directors were put under investigation by the IRA. [29] The Mauritian government appointed receiver managers at BAI Co. later announced their intention to dispose of the group's entire shareholding in Britam. [30] Dawood Rawat moved to the International Court of Arbitration in France to block this sale. As of January 2017, the case was ongoing. [31]

Peter Munga, a Kenyan billionaire and Britam shareholder with an initial 16.96 percent shareholding acquired 23.3 percent in new shareholding that he bought from the Government of Mauritius at an undisclosed sum in June 2016, bringing his new total shareholding to 40.26 percent. At the time, Munga stated that he would dispose of the newly acquired shareholding, in approximately two years. [32] [33] In January 2017, the International Finance Corporation agreed to invest KSh3.5 billion (approx. US$35 million) in Britam, in exchange for 10.37 percent shareholding. The company issued 224.1 million new ordinary shares to IFC, reducing the shareholding of existing shareholders by 10.3 percent, reducing Munga's total ownership to 36.0 percent. [34]

Recent developments

In April 2019, the Business Daily Africa newspaper reported that the Swiss insurer, Swiss Re had acquired 15.79 percent in Britam Holdings Limited. Africinvest, now the largest shareholder, owns 16.2 percent. The International Finance Corporation controls 8.8 percent. At that time, the original founders, maintained a combined 39.2 percent equity ownership in the company. [35]

See also

Related Research Articles

<span class="mw-page-title-main">Jubilee Insurance Company Limited</span> Insurance company in Kenya

The Jubilee Insurance Company of Kenya (JICK), mostly known as Jubilee Insurance, is an insurance company in Kenya, which has the largest economy in the East African Community. It is a wholly owned subsidiary of Jubilee Holdings Limited, a multinational insurance holding company, which maintains its headquarters in Nairobi, the capital of Kenya, with subsidiaries in Kenya, Tanzania, Uganda, Burundi, and Mauritius, with plans to expand on the African continent.

KCB Group Limited, also known as the KCB Group, is a financial services holding company based in the African Great Lakes region. The Group's headquarters are in Nairobi, Kenya, with its subsidiaries being KCB Bank Kenya Limited, KCB Bank Burundi Limited, KCB Bank Rwanda Limited, KCB Bank South Sudan Limited, KCB Bank Tanzania Limited, KCB TMB Congo and KCB Bank Uganda Limited.

Diamond Trust Bank Group, in short DTB Group, is an African banking group active in Burundi, Kenya, Tanzania, and Uganda. The flagship company of the group, Diamond Trust Bank Kenya, is licensed by the Central Bank of Kenya, the central bank and national banking regulator in Kenya, the largest economy in the East African Community.

<span class="mw-page-title-main">I&M Holdings Limited</span> Kenyan financial services conglomerate

I&M Holdings Limited, also I&M Bank Group, is a conglomerate comprising banks, an insurance company and investment advisory businesses. The group's headquarters are located in Nairobi, Kenya, with subsidiaries in Kenya, Mauritius, Rwanda, Tanzania and Uganda. The flagship company of the group is I&M Bank Limited, with headquarters in the I&M Bank Tower on Kenyatta Avenue in the central business district of Nairobi, Kenya's capital and largest city.

Commercial Bank of Africa (CBA) was a financial services provider headquartered in Nairobi, Kenya, the largest economy in the East African Community. CBA was licensed by the Central Bank of Kenya, the central bank and national banking regulator.

Commercial Bank of Africa Group is a financial services provider in East Africa. Its headquarters are located in Nairobi, Kenya, with subsidiaries in Kenya, Rwanda, Tanzania, Uganda and Ivory Coast.

Prime Bank Kenya (PBKL) is a commercial bank in Kenya, licensed and supervised by the Central Bank of Kenya (CBK), the national banking regulator.

Housing Finance Company Limited, commonly referred to as Housing Finance, is a commercial bank in Kenya, regulated by the Central Bank of Kenya, the central bank and national banking regulator. HFC is major mortgage lender in Kenya and was the second-largest in the market with KSh33.7 billion in mortgage loans, as of December 2019. At that time, Kenya Commercial Bank, the largest mortgage lender in the country had KSh64.3 billion in mortgage loans.

Centum Investment Company Plc, commonly known as Centum is a public East African investment company. It operates as an affiliate of the Kenyan government-owned Industrial and Commercial Development Corporation (ICDC).

<span class="mw-page-title-main">Equity Bank Rwanda Limited</span> Bank in Rwanda

Equity Bank Rwanda Limited (EBRL), is a commercial bank in Rwanda. The bank is licensed by the National Bank of Rwanda, the central bank and national banking regulator.

<span class="mw-page-title-main">NCBA Group Plc</span> Kenyan financial services conglomerate

NCBA Group Plc, is a financial services conglomerate in East and West Africa. The Group's headquarters are located in Nairobi, Kenya, with subsidiaries in Kenya, Tanzania, Rwanda, Uganda and Ivory Coast.

Old Mutual Holdings Plc, Formally known as UAP Holdings Limited, is an investment, retirement, and insurance group that operates mainly in Eastern Africa. UAP Holdings is one of the leading insurance and financial services groups in eastern Africa with a network of branches and operational subsidiaries spread across the greater eastern and central Africa regions.

<span class="mw-page-title-main">CIC Insurance Group</span>

CIC Insurance Group Limited, commonly referred to as CIC Group, is an insurance and investment group that operates mainly in Kenya, Uganda, South Sudan and Malawi. CIC Group has a network of branches and operational subsidiaries spread across the 4 countries.

<span class="mw-page-title-main">Equity Group Holdings</span>

Equity Group Holdings Limited (EGHL), formerly Equity Bank Group, is a financial services holding company based in the African Great Lakes region. EGHL's headquarters are in Nairobi, Kenya, with subsidiaries in Kenya, Uganda, Tanzania, South Sudan, Rwanda, Democratic Republic of the Congo and a representative office in Ethiopia.

Peter Kahara Munga is a businessman and entrepreneur in Kenya, the largest economy in the East African Community. He is the immediate past group chair of the Equity Bank Group, the largest bank holding company on the African continent, by customer numbers, with over 9.2 million customers as of 31 June 2014. He is reported to be one of the wealthiest individuals in Kenya, with a personal net worth exceeding US$100 million as of February 2014.

Dr. Benson I Wairegi is an accountant and business executive in Kenya. He is the current Group Managing Director of Britam Holdings Plc (Britam), a financial services conglomerate headquartered in Nairobi, the Kenyan capital, with subsidiaries in Kenya, Uganda, South Sudan, Rwanda, Tanzania, Malawi and Mozambique. In Britam, he presided over the transformation of the company from a small home service insurance company, into a diversified financial services group operating in seven (7) countries, Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique and Malawi with interests in life insurance, general insurance, health insurance, retirement planning and property.

Jubilee Holdings Limited is a financial services holding company, with its headquarters in Nairobi, Kenya. The company maintains subsidiaries in Kenya, Uganda, Tanzania, Burundi, and Mauritius. Its activities are mainly in the insurance sector.

Real Insurance Company of Malawi Limited, commonly referred to as Real Insurance, is an insurance company based in Blantyre, Malawi.

Diamond Trust Bank Tanzania Plc (DTBT) is a commercial bank in Tanzania, licensed by the Bank of Tanzania.

Housing Finance Group of Kenya (HFGK), also Housing Finance Group Limited (HFGL), is a financial services holding company based in Kenya. HFGK maintains its headquarters in Nairobi, the capital and largest city, with subsidiaries and branches in major urban centers in the country.

References

  1. 1 2 3 Brian Ngugi (2 February 2021). "Britam chair Andrew Hollas retires, Said Karama picked in acting role". Business Daily Africa . Nairobi. Retrieved 3 February 2021.
  2. 1 2 "About Britam Holdings Plc". Reuters.com. 1 February 2021. Retrieved 3 February 2021.
  3. 1 2 3 "British-American Investments Company IPO Prospectus" (PDF). British-American Investments Company. 29 June 2011. Retrieved 30 November 2014.
  4. ↑ "British-American Investments Company Shareholders Circular of 24 January 2014, Pages 26 & 27" (PDF). British-American Investments Company. 24 January 2014. Archived from the original (PDF) on 14 May 2014. Retrieved 30 November 2014.
  5. ↑ Ainomugisha, Lydia (20 July 2011). "Britam Insurance Enters Uganda". The Observer (Uganda) . Retrieved 30 November 2014.
  6. ↑ Gachenge, Beatrice (23 August 2011). "Kenya's British-American IPO Undersubscribed". Reuters. Archived from the original on 5 December 2014. Retrieved 30 November 2014.
  7. ↑ Mutegi, Mugambi (8 March 2012). "CFC & British American To Open Shop In South Sudan". Business Daily Africa (Nairobi). Retrieved 30 November 2014.
  8. ↑ "National Bank of Rwanda: Licensed Private Insurers In Rwanda". National Bank of Rwanda (BNR). Retrieved 30 November 2014.
  9. ↑ "International Insurance Firm Opens In Rwanda". RwandaPost.Org Quoting Rwanda Eye. 30 July 2013. Archived from the original on 15 December 2014. Retrieved 30 November 2014.
  10. ↑ Mugwe, David (24 November 2013). "Britam To Buy Real Insurance In A Share Deal". Business Daily Africa (Nairobi). Retrieved 30 November 2014.
  11. ↑ Wachira, Charles (20 February 2014). "Britam Kenya Shareholders Approve Acquisition of Real Insurance". Bloomberg News . Retrieved 30 November 2014.
  12. ↑ Herbling, David (14 April 2014). "Britam Seeks KSh300 Million Stake In Nigerian Firm". Business Daily Africa (Nairobi). Retrieved 30 November 2014.
  13. ↑ Gachiri, John (21 May 2014). "Britam Eyes Bond In Expansion Drive". Business Daily Africa . Retrieved 30 November 2014.
  14. ↑ Masinde, Joshua (30 June 2014). "Equity Bank Exits Housing Finance Through Sale of Its Shares To Britam". Daily Nation (Nairobi). Retrieved 30 November 2014.
  15. ↑ Richardson, Paul; Ombok, Eric (1 July 2014). "Britam of Kenya to Buy Equity Bank's Housing Finance Stake". Bloomberg News . Retrieved 30 November 2014.
  16. ↑ "Britam name change". Britam Holdings Limited. 26 June 2015. Archived from the original on 7 July 2015. Retrieved 6 July 2015.
  17. ↑ "Britam Holding 2016 Annual Report". 31 December 2016. Retrieved 28 September 2017.
  18. ↑ "Real Insurance 31 December 2012 Annual Report" (PDF). Real Insurance Company Limited. March 2013. Archived from the original (PDF) on 12 August 2014. Retrieved 30 November 2014.
  19. ↑ "Real Insurance Company of Malawi Limited 2009 Annual Report" (PDF). Real Insurance Company of Malawi Limited. March 2010. Archived from the original (PDF) on 12 August 2014. Retrieved 30 November 2014.
  20. ↑ Helema, Innocent (11 August 2014). "Britam & Real Complete Deal". The Nation (Malawi) . Retrieved 30 November 2014.
  21. ↑ Otuki, Neville (15 September 2017). "IFC completes buying 10.3pc stake in Britam". Business Daily Africa . Narobi. Retrieved 15 September 2017.
  22. ↑ Britam (22 March 2018). "Britam Annual Report for the Year Ended 31 December 2017". Nairobi: Britam Holdings Limited. p. 45. Retrieved 4 June 2018.
  23. ↑ Juma, Victor (4 June 2018). "Billionaire Munga cashes in Sh1.3 billion Britam shares". Business Daily Africa . Nairobi. Retrieved 4 June 2018.
  24. ↑ Otieno, Bonface (22 July 2018). "Tallest building in EA ready for letting". Business Daily Africa. Retrieved 27 February 2021.
  25. ↑ "Britam Tower". Britam Holdings Limited. Archived from the original on 3 March 2014. Retrieved 10 November 2015.
  26. ↑ Jordan D. Maglich (3 April 2015). "Mauritius Halts $693 Million Ponzi Scheme At Bank". Ponzitracker.com. Archived from the original on 26 September 2015. Retrieved 15 September 2017.
  27. ↑ Arouff, Jean Paul (3 April 2015). "Mauritius revokes Bramer Bank licence, PM says Ponzi scheme found". Reuters . Thomson Reuters. Archived from the original on 29 September 2015. Retrieved 9 April 2015.
  28. ↑ Wachira, Charles (7 April 2015). "Britam of Kenya Says It's Separate From Suspended Mauritian Bank". Bloomberg Business . Bloomberg L.P. Retrieved 7 April 2015.
  29. ↑ Mutegi, Mugambi (20 April 2015). "IRA probes Britam directors over Bramer bank scandal". Business Daily Africa . Nairobi. Retrieved 21 April 2015.
  30. ↑ Richardson, Paul (18 June 2015). "Britam of Kenya's Biggest Holder Has Stake Put Up for Sale". Bloomberg Business . Bloomberg L.P. Retrieved 18 June 2015.
  31. ↑ Luttrell, Sam; Packer, Clementine (11 January 2017). "Case comment: Dawood Rawat vs The Republic of Mauritius" (PDF). Disputes Centre of Australia. Retrieved 15 September 2017.
  32. ↑ Ngigi, George (14 June 2016). "Munga makes Sh9 billion bet on Mauritian's Britam shares". Business Daily Africa . Nairobi. Retrieved 16 September 2017.
  33. ↑ Juma, Victor (3 July 2016). "Two-year window gives Munga upper hand in sale of Britam stock". Business Daily Africa . Nairobi. Retrieved 16 September 2017.
  34. ↑ Juma, Victor (3 January 2017). "World Bank arm eyes KSh3.5 billion stake in insurance group Britam". The Citizen Mobile . Dar es Salaam.
  35. ↑ Juma, Victor (18 April 2019). "Britam founders cede control in Mbaru deal". Business Daily Africa . Nairobi. Retrieved 18 April 2019.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.