Sanlam Kenya closed the year 2020 on a Ksh.78 million after-tax loss, due to increased claims and lower investment returns, representing a decline from the corresponding previous year after-tax profit of Ksh.114million.
The company’s pre-tax profit shrunk 92 percent to record Ksh.43 million from the Ksh.550 million posted in 2019.
Sanlam Kenya 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.
The challenging business environment eroded gains made in the growth of gross premium income, which increased by 24.4 percent to Ksh.8.69 billion up from Ksh.6.99 billion posted the previous year due to growth in both the long and short-term insurance businesses.
Sanlam General Insurance’s Gross written premium grew to Khs.4.06 billion, up from Ksh.2.85 billion.
The firm’s total income grew to Ksh.2.59 billion, up from Ksh.2billion posted in 2019.
Sanlam Kenya Chief Executive Officer Patrick Tumbo said management focused on securing the employees’ health and jobs, cost-saving, new product development, innovation and delivery of sales and services online.
“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,” said Tumbo adding that “We will also continue to adapt to the evolving needs of our client base,” said Tumbo.
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 “RetireMed.”