Sanlam Kenya PLC posted a Sh78 million after-tax loss in 2020, a decline from the previous year’s after-tax profit of Sh114million, due to higher claims and lower investment returns.
Sanlam’s had raked in only Sh43 million in pretax profit in its full-year 2020 trading results.
The non-bank financial services firm’s profit accounts for a 92 per cent decline against the Sh550 million it raked in in 2019, this mainly attributed to effects of the Covid-19 pandemic.
Sanlam Group Chairman Dr John Simba said effects of Covid-19 pandemic on the local economy and foreign exchange rates adversely affected net assets valuation of the Group.
Group CEO Dr Patrick Tumbo said management focused on securing staff’s jobs and health, cost saving, new product development, innovation and delivery of sales and services online.
The firm’s life insurance subsidiary and Minet Kenya recently launched a post-retirement health insurance plan dubbed RetireMed as part of the company’s business growth strategy.
Clients under Sanlam Life and Sanlam General Insurance are enjoying benefits under the recently launched Sanlam Assistance and the Sanlam Premium Rewards Loyalty Programme.
Dr Tumbo noted that more efforts are being made to develop and deliver new products as the company embraces digital processes to improve customer experience and satisfaction.
“The business retains a positive outlook for the year 2021 with all our operating ratios still robust. We remain committed to creating and protecting the wealth of our clients and other stakeholders through innovative product offerings and employing the most efficient processes,” he said.
He added, “We will also continue to adapt to the evolving needs of our client base.”
He said, overall, Sanlam’s gross premium income rose by 24.4 per cent to Sh8.69 billion from Sh6.99 billion in 2019 due to growth in long and short-term insurance businesses.
The company’s total income accelerated to Sh9.42 billion from Sh8.89 billion recorded in 2019, representing a 6 per cent growth.
The firm’s insurance subsidiaries, Sanlam Life and Sanlam General Insurance Ltd, however, 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.
Its investment income also grew to Sh2.33 billion from Sh2.20 billion the previous year.
The life insurance firm’s investments continued to grow at Sh26.3 billion, up from Sh24.7 billion in 2019, backed by more than Sh20.48billion holding of government securities at the end of the trading year.
Sanlam General Insurance’s Gross written premium grew to Sh4.06 billion, up from Sh2.85 billion, as the firm’s total income grew to Sh2.59 billion from Sh2 billion posted in 2019.