Britam has sold 21.6 million shares of Equity Group, which has a current market value of Sh765 million, decreasing its ownership in Kenya’s second largest lender.
According to the latest yearly report, the firm held 275.7 million shares of the bank, which is equal to 7.3 percent as of last December.
The company has, in recent years, continue to reduce its exposure in Equity. In 2014, it held 26 percent of its total asset and held them directly through its various insurance subsidiaries.
The firm value gain on financial assets escalated to Sh4.3 billion from its paper losses of Sh3 billion. These profits were majorly pushed by a rally in banking stocks in the last quarter following the repeal of interest rate control.
“The main contributor to the difference between the reported profit before tax and the total comprehensive income in 2019 is the gains resulting from the revaluation of the strategic investment in Equity Group Holdings Plc, which is marked to market,” said Britam.
Britam is among other insurers who are likely to make significant losses this year from the stock market due to the effects of Coronavirus pandemic that started to hit the country in March.