Sanlam postpones release of 2021 financial results
Sanlam Kenya has postponed the release of its 2021 full year results ended April 30, contrary to the Capital Markets Authority (CMA) regulation.
Sanlam said one of its subsidiary in the country failed to file the report on time.
“This has been occasioned by a delay in reporting by one of the subsidiaries for which additional time is required by the directors to finalise the financial statements,” said Sanlam Chairman Dr.John PN Simba.
The underwriter has, however, sort permission from the regulator to release the results by May 31, 2022.
In the latest Insurance Regulatory Authority (IRA) report for the 9 months ending 30 September 2021, Sanlam Insurance posted an underwriting loss of Ksh.188.77 million
Net claims stood at Ksh.142 million, its market share stood at 2 percent while the claims ratio stood at 92 percent.
It had issued a profit warning for the financial year 2021 due to the harsh operating environment occasioned by the novel coronavirus.
“Based on our unaudited end-of-year financial results, and information currently at the board’s disposal, we wish to report that our projected net earnings after tax for the period ended December 2021 will reflect a decline compared to the prior-year earnings,” the firm said.
A similar warning was issued in March 2020 when it closed the year on a Ksh.78 million after-tax loss, due to increased claims and lower investment returns.
The company’s pre-tax profit shrunk 92 percent to Ksh.43 million from the Ksh.550 million posted in 2019.
The pandemic negatively affected the firm’s retail and corporate segments through increased premium debt provisioning to reflect associated default risk.
Sanlam is currently the biggest pension fund manager after taking over Ksh.46 billion National Social Security Fund (NSSF) portfolio from British American Assets Managers.
Overtaking GenAfrica with Ksh.288.8 billion in assets, up from Ksh.226.9 billion in 2020, Sanlam now reins the pension fund sector as Gen Africa’s assets rose from Ksh.237.6 billion in 2020 to Ksh.270.3 billion.
“Sanlam Investment East Africa Ltd and CIC Assets Management Ltd join the list of fund managers managing NSSF funds after the exit of the British American Asset Managers Ltd,” Retirement Benefits Authority said in an industry report.