Sanlam Kenya Posts Kes 78 Million Loss for FY2020
Sanlam Kenya Plc has posted a Kes 43 million pretax profit in its just-released full-year 2020 trading results, a 92% decline against the Kes 550 million in 2019 primarily attributed to the Covid-19 pandemic impact on the local and international economies.
Speaking when the firm’s approved and released the results, the 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.
In response to the challenging operating environment, the Group CEO, Dr Tumbo said, management focused on securing the employees’ health and jobs, cost saving, new product development, innovation and delivery of sales and services online.
As part of the business growth strategy, Sanlam Kenya’s Life insurance subsidiary, in conjunction with Minet Kenya recently unveiled an innovative post-retirement insurance plan branded Retire Med. This product is designed to assist Kenyans save for their medical expenses in retirement.
Clients under it’s two subsidiaries (Sanlam Life and Sanlam General Insurance) are also enjoying benefits under the recently unveiled Sanlam Assistance and the Sanlam Premium Rewards Loyalty Program. The clients are enjoying exclusive rewards, including monthly discounts at local supermarkets, restaurants and pharmacies, and free round-the-clock access to Emergency support services.
Further efforts to develop and deliver to the market new products, Dr Tumbo said, are ongoing, backed by enhanced digitization of the firm’s business processes to improve customer experience and satisfaction.
“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,” – Group CEO, Dr Tumbo
He explained that, overall, Sanlam’s Gross premium income had increased by 24.4 %to Kes 8.69 billion up from Kes 6.99 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 Kes 9.42 billion up from Kes 8.89 billion recorded in 2019, representing a 6% growth.
With increased claims and lower investment returns, the firm closed the year on a Kes 78 million after-tax loss representing a decline from the prior-year after-tax profit of Kes 114million.
At the business operating level, the firm’s insurance subsidiaries of life and General Insurance, generated Kes 499 million and Kes 138million in after-tax profits.
Sanlam Life’s Gross written premium grew to Kes 5.21 billion up from Kes 4.38billion posted the previous year. The firm’s investment income also maintained a positive trend growing to Kes 2.33 billion from Kes 2.20 billion in the prior year.
The life insurance firm’s investments continued to hold steady at Kes 26.3 billion, up from Kes 24.7 billion posted the previous year and significantly buoyed by more than Kes 20.48billion holding of government securities at the close of the trading year.
Sanlam General Insurance’s Gross written premium grew to Kes 4.06 billion, up from Kes 2.85 billion. The firm’s total income grew to Kes 2.59 billion, up from Kes 2.00 billion posted in 2019.
Sanlam Future Outlook
Looking ahead, Dr Simba reiterated that the company’s 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.