CorporateFinance

Sanlam HY loss almost triples to record Ksh.292 million

The underwriter Sanlam Kenya, has recorded a huge loss for the period ended June to record Ksh.291.9 million from a narrower loss of Ksh.99.1 million in June last year.

An almost triple loss has been attributed to swollen claims and payouts to policyholders for the period under review.

Sanlam’s net claims and policyholder benefits rose by almost twofold to Ksh.4.1 billion from Ksh.2.5 billion last year.

This pushes up its total benefits, claims and other expenses in the period to a higher Ksh.6.2 billion from Ksh.4.4 billion.

“At Sanlam Kenya Plc, we have also been affected by COVID-19, which has accelerated life and general insurance policy claims, but we expect swift recovery as the pandemic containment measures including mass vaccinations begin to bear fruit,” said Sanlam Kenya Group CEO Patrick Tumbo.

The underwriter’s written premiums improved by 37.2 percent to Ksh.5.9 billion to lift the Group’s total income in the period.

It also saw a rebound in cash generation in the six months, yielding Ksh.742.6 million after the consumption of Ksh.459.9 million last year.

Sanlam says it has restructured Ksh.2.9 billion loans into a Ksh.3 billion facility with a local bank to mitigate against future forex losses occasioned by the weakening of the shilling against the US dollar.

“The debt restructuring which commenced in 2020 is now complete, and it will provide much-needed relief as the Forex loss risk is now mitigated going forward,” added Dr. Tumbo.

Monitor Your Business Transaction

Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.
Back to top button