Sanlam narrows profit loss by 13.4% to Ksh.542 million in 2021

Sanlam HY loss almost triples to record Ksh.292 million

Sanlam Kenya narrowed its profit loss by 13.4 percent to Ksh.542 million for the full year ended December 31, 2021.

The Nairobi Securities Exchange (NSE)-listed company has its profit loss at Ksh.626 for the full year ended December 2020. Sanlam attributed the performance to a challenging market, owing to the coronavirus effects.

Its Gross Premium Income stood at Ksh.12 billion representing a 38 percent improvement over the previous year’s Ksh.8.7 billion.

The firm’s net written premium also registered a 34 percent growth to close at Ksh.9.2billion, up from Ksh.6.8 billion, while total assets improved by 12 percent to Ksh.34.7 billion.

“After the successful implementation of revenue growth strategies in both short- and long-term insurance business, management’s efforts have been redirected at ringfencing Sanlam Life successes to date while improving future results. Sanlam General will translate its notable revenue growth into a profitable result going forward,”said Sanlam Chief Executive Dr. Patrick Tumbo.

Sanlam’s net paid-out benefits and claims increased to Ksh.8.6 billion in 2021 compared to Ksh.5.7 billion in 2020.

The group’s General Insurance reported a Gross Premium Income went up 19 percent to Ksh.4.9 billion. However, the business reported an after-tax loss of Ksh.501 million on account of prudent provisioning of claims reserves and insurance counterparty balances.

To spur its growth, Sanlam said will continue to emphasise innovation to improve the Group’s insurance offering to the market with a positive return to profitability prospects.

The last time Sanlam made a profit was in 2019 when it returned Ksh.639.7 million after-tax profit for the six-month period ending June 2019, a complete turnaround from the previous year when it posted a Ksh.1.5 billion after-tax loss.

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Lawrence Baraza is a prolific writer with competencies in Digital Media, Print, and Broadcast. Baraza is also a Communication Practitioner currently spearheading Digital content on Metropol TV's Digital Desk.

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