Nairobi, Kenya, Feb 10 – Sanlam Kenya has announced the withdrawal of an earlier posted profit warning notice ahead of its full-year results release following good growth prospects.
Group Chief Executive Officer Mugo Kibati has attributed the revised position to a reduction in the level of actuarial reserving for its life insurance businesses.
He said the profit withdrawal notice had also been necessitated by a reduction in the level of impairment provisions and is not based on a change of accounting system or method.
“The withdrawal has been undertaken based on engagements with the relevant regulatory agencies as part of our corporate governance policies,” Kibati said, adding that, “a review on our life business liabilities and impairment provisions against some of our banking exposures has necessitated this withdrawal and the earlier profit warning is no longer valid.”
The insurer had earlier projected a fall in profits by over 25 percent citing a decline in premiums from its life business and losses on equity investments.
Sanlam Kenya Chairman, Dr. John Simba said the company has stepped up the implementation of its robust five-year growth strategy.
“Beyond the rebranding programme, the new strategy has also seen a significant transformation for the firm’s life and general insurance business distribution channels, as well as investment in capacity to support accelerated future growth,” said Simba.