NAIROBI, KENYA: Nairobi Securities Exchange (NSE) listed firm, Sanlam Kenya PLC has reported an after-tax loss of Sh78 million in 2020 financial results representing a decline from the prior-year after-tax profit of Sh114million.
The company saw an increase in claims and lower investment returns during the period impacting negatively on its books.
Sanlam Kenya Plc Group Chairman Dr John Simba said the effects of the Covid-19 pandemic on the local economy and foreign exchange rates adversely impacted the Group’s net assets valuation.
Sanlam Life’s Gross written premium grew to Sh5.21 billion up from Sh4.38 billion posted the previous year.
The firm’s investment income also maintained a positive trend growing to Sh2.33 billion from Sh2.20 billion in the prior year. The life insurance firm’s investments continued to hold steady at Sh26.3 billion, up from Sh24.7 billion posted the previous year and significantly buoyed by more than Sh20.48billion holding of government securities at the close of the trading year.
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Sanlam General Insurance’s Gross written premium grew to Sh4.06 billion, up from Sh2.85 billion. The firm’s total income grew to Sh.59 billion, up from Sh2.00 billion posted in 2019.
“The business retains a positive outlook for the year 2021 with all our operating ratios still robust. We remain committed to creating and protecting the wealth of our clients and other stakeholders through innovative product offerings and employing the most efficient processes,” the Group CEO, Patrick Tumbo said.
He added that “We will also continue to adapt to the evolving needs of our client base.”
He explained that, overall, Sanlam’s Gross premium income had increased by 24.4 per cent to Sh8.69 billion up from Sh6.99 billion posted the previous year due to growth in both the long and short-term insurance businesses. The firm’s total income he added had accelerated to Sh9.42 billion up from Sh8.89 billion recorded in 2019, representing a 6 per cent growth.
At the business operating level, the firm’s insurance subsidiaries, Sanlam Life and Sanlam General Insurance Ltd generated Sh499 million and Sh138 million in after-tax profits.
Looking ahead, Dr Simba reiterated that the Sanlam Kenya Board of Directors, are maintaining a positive outlook on the business as management continues to focus on the execution of the Group’s strategic initiatives to achieve performance goals.
In response to the challenging operating environment, Tumbo said, management focused on securing the employees’ health and jobs, cost-saving, new product development, innovation and delivery of sales and services online.
