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Sanlam Kenya’s 2020 Pretax Profit drops by 92pc to Sh43mn on Pandemic Fallout

NAIROBI, Kenya, Mar 25 – Sanlam Kenya PLC has posted a Sh43 million pretax profit in its just-released full-year 2020 trading results, a 92 percent decline against the Sh550 million in 2019 primarily attributed to the Covid-19 pandemic impact on the local and international economies. 

The firm’s Group 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.

During the financial year, Sanlam’s overall gross premium income increased by 24.4 percent to Sh8.69 billion up from Sh6.99 billion posted the previous year due to growth in both the long and short-term insurance businesses.

The firm’s total income accelerated to Sh9.42 billion up from Sh8.89 billion recorded in 2019, representing a 6 percent growth.

The firm closed the year on a Kshs 78 million after-tax loss representing a decline from the prior-year after-tax profit of Kshs 114million.

At the business operating level, the firm’s insurance subsidiaries, Sanlam Life and Sanlam General Insurance Ltd, generated Sh499 million and Sh138 million in after-tax profits.

Sanlam Life’s Gross written premium grew to Sh5.21 billion up from Sh4.38 billion posted the previous year.

The firm’s investment income also maintained a positive trend growing to Sh2.33 billion from Sh2.20 billion in the prior year.

The life insurance firm’s investments continued to hold steady at Sh26.3 billion, up from Sh24.7 billion posted the previous year and significantly buoyed by more than Sh20.48billion holding of government securities at the close of the trading year.

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Sanlam General Insurance’s Gross written premium grew to Sh4.06 billion, up from Sh2.85 billion.

The firm’s total income grew to Sh2.59 billion, up from Sh2.00 billion posted in 2019.

The Chair said that the business retains a positive outlook for the year 2021 with all their operating ratios still robust.

He added that the firm remains committed to creating and protecting the wealth of their clients and other stakeholders through innovative product offerings and employing the most efficient processes.

“We are maintaining a positive outlook on the business as management continues to focus on the execution of the Group’s strategic initiatives to achieve performance goals,” the Chair said.

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