BY STEVEN BARYAVUGA
Britam team, including Allan Mafabi, the CEO Britam Insurance-Uganda; Andrew Hollas, chairman Britam Holdings Plc Board; Dr. Benson Wairegi, Britam Group MD; and Ronald Kasolo, GM Britam Asset Management, at the unveiling of their new offices in Nakasero.
Do not put all your eggs in one basket. You know that age-old adage. You probably see it as too old and boring to dwell on. Not Britam. The insurers are determined to break not only sector bounds but also go far and beyond in their ambition to change the industry status quo.
And one area Britam has set its eyes on is real estate. The insurer recently laid bare its intentions to venture into the real estate industry following acquisition of a permanent home in the country.
Speaking at the December 7 launch of the company’s new offices in the upscale Nakasero suburb of Kampala, Britam Group managing director, Dr. Benson Wairegi, noted that they would now expand their products and services catalogue in Uganda to include real estate purchase, management and investment.
“Over and above our recent opening of an asset management company in Uganda, we are considering opening a property division as well in order to bridge the property and real estate gap in the country,” he said.
The immense potential of real estate has never been in doubt. The sector is lucrative and enticing for many with the investments and for any company dreaming to stamp its authority in an economy, it is understandable why Britam Uganda is wasting no time in polishing its vision at the onset.
“We will continue to further invest in this market because of its great potential made possible by a conducive business operating environment,” Dr. Wairegi said.
The venture into real estate, according to Dr. Wairegi, is to enable the insurers broaden their investments and cut reliance on earnings from their insurance business portfolio–which is performing well.
Dr. Wairegi’s revelation is in line with the company’s acquisition strategy that also saw Britam buy a 25% stake in Kenya property development firm, Acorn, in November last year. The insurers are also currently building a commercial property in Nairobi worth $97.2 million.
Britam’s foray into Uganda’s real estate business comes at a time the sector is fast growing, with more property agents and companies opening shop each day in response to the ever-growing demand for housing.
A recent report by the Lands ministry indicates that over 2,000 housing units are set up annually, with at least 60% of the structures roofed with iron sheets.
However, there is also a deficit of between 600,000 to 1000,000 housing facilities.
Strong Uganda performance
The unveiling of Britam’s new Kampala premises comes at a time when the seven-years old company is posting good performances in its line of business.
According to Quarter 3 figures released by the Insurance Regulatory Authority, Britam Uganda posted over Shs37.3 billion in premiums, putting it in third position, just behind market leaders UAP and Jubilee.
The giant insurance firm has been trusted with top infrastructure insurance such as the Kampala-Entebbe Expressway, worth $476 million, the new Cable Bridge over the River Nile in Jinja, worth $130 million, and expansion of Entebbe International Airport works, worth $200 million.
Britam now aims to bring share of investment held as equities and fixed income to less than 20% of its total portfolio over the next three years, with real estate — which currently constitutes 5% of its investments — expected to become a key component.
Allan Mafabi, the chief executive of Britam Insurance-Uganda, said: “We are excited about our new spacious offices, which gives us an opportunity to serve our customers better and offer the full range of diversified financial services to our customers under one roof.”
Mafabi noted that the investment in the new offices was a reflection of the group’s commitment to the Ugandan market, and was meant to offer convenience and comfort to clients.
Britam is a leading diversified financial services group listed on the Nairobi Securities Exchange. The group has presence in seven countries in Africa ; Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique and Malawi.
