Insurance financier Britam Group has revealed plans to focus on its retail clients to grow its profit margin within the asset management business. This is after the insurance financier sought to change strategy and remain relevant for the competitive segment.
According to Monday’s announcement, investors should expect the move to help Britam complement depleting profit margins from institutional clients. With the diversification, Britam plans to overwrite its trend of growing the assets under management while also having thin margins.
“With the margins from constitutional clients remaining low, we are targeting to deepen our opportunities in the higher-margin retail sector,” said Benson Wairegi, Britam’s Managing Director.
Mr. Wairegi further adds that the growth has been the main attribute of the drive-by pensions and collective investment schemes. Uptake of both finance option has seen its investment subsidiary- Britam Asset Managers- grow its operations.
Under the subsidiary investment group, Britam runs its asset investment scheme while also managing property assets. Its asset management sees Britam invest customers’ pensions, savings, and capital at a commission over time. As of the last reporting, the insurer revealed a 55 percent growth in the asset under management subsidiary to the tune of Sh227 billion in December 2019.