Sanlam Kenya has seen its half-year profit after tax fall drastically to Sh30.9 million in 2025, down from Sh282.2 million in the same period of 2024.
The 89 per cent drop highlights the pressure mounting on insurers as rising costs outpace gains in revenue.
The company managed to grow its insurance revenue by 6 per cent to Sh3.7 billion, reflecting stronger premiums across both life and general insurance.
Yet this growth was overshadowed by rising service expenses, which rose to Sh3.3 billion from Sh3.16 billion a year earlier.
Net reinsurance costs also went up, hitting Sh418.2 million.
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Together, these factors dragged the insurance service result into a Sh10.1 million loss, reversing a Sh86.2 million profit posted during the same period last year.
One of the few bright spots came from investments.
Sanlam’s income from this segment climbed 34 per cent to Sh3.1 billion, lifted by stronger performance in fixed income and equities.
Interest income alone increased to Sh1.47 billion from Sh1.11 billion, offering some cushion against operational headwinds.
Even so, profitability continued to erode as net finance expenses on insurance contracts almost doubled to Sh2.93 billion.
Operating costs added further strain, surging to Sh63.9 million compared with Sh20.9 million a year earlier.
This combination pushed earnings per share down to Sh0.10, a steep fall from Sh1.88 previously.
Despite the weaker bottom line, the group’s financial position remained stable, with total assets growing by 5.6 per cent to Sh41.3 billion.
The results place Sanlam Kenya among a widening circle of insurers feeling the economic pinch in 2025, where investment returns have been strong, but underwriting challenges and financing costs continue to erode margins.
