Sanlam Kenya’s FY2020 pre-tax profit drops 92pc

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Sanlam
PHOTO/COURTESY: Kenyan Wallstreet

Sanlam Kenya has recorded a 92 percent decline in its pre-tax profit for the full year ended December 2020.

The Group recorded a Ksh. 43 million pre-tax profit in the period under review down from Ksh. 550 million posted in a similar period in 2019.

The firm has attributed the significant drop in pre-tax profit to the effects that the Covid-19 pandemic has had on local and international economies as well as fluctuations in foreign exchange rates which has impacted the Group’s net assets valuation.

During the period under review, the Group’s gross premium income grew by 24.4 percent to Ksh.8.69 billion up from Ksh.6.99 billion recorded in 2019 owing to growth in the firm’s long and short-term insurance businesses. The firm finished the year with a Ksh. 78 million after-tax loss- a drop from the previous year’s after-tax profit which stood at Ksh. 114 million.

On the contrary, the firm’s insurance divisions Sanlam Life and Sanlam General Insurance Ltd posted a Ksh.499 million and Ksh.138 million respectively in after-tax profits. Sanlam Life’s Gross written premium grew to Ksh. 5.21 billion up from Sh4.38 billion posted in 2019. The firm’s investment income also maintained a positive trend growing to Ksh. 2.33 billion from Ksh. 2.20 billion in the prior year.

Similarly, the Group’s life insurance firm’s investments stayed firm at Ksh. 26.3 billion, up from Ksh. 24.7 billion posted in 2019 and considerably sustained by more than Ksh. 20.48billion holding of government securities at the close of the trading year.

“We 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,” the firm’s Group Chairman Dr. John Simba said in a statement.

Sanlam General Insurance’s Gross written premium also increased to Ksh. 4.06 billion, up from Ksh. 2.85 billion. The firm’s total income similarly grew to Ksh. 2.59 billion, up from Ksh. 2.00 billion posted in a similar period in 2019.

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