Sanlam posts Sh291.8mn loss in 1H21

NAIROBI, Kenya, Aug 18 – Sanlam Kenya PLC has posted a Sh291.8 million loss in the first half of the year, up from a Sh99.1 million loss posted in the same period last year. 

The listed non-bank financial services firm has attributed the loss to one-off forex losses, as well as it stance towards provisioning.

The firm says its gross insurance revenues improved significantly for both Life and General business amid the pandemic.

Half-year consolidated gross written premiums at Sh5.9 billion was a 38 percent improvement compared to the prior year’s Sh4.3 billion, with Sanlam General posting a 32 percent growth.

Sanlam Life posted a 44 percent growth in insurance revenues.

Speaking, when he confirmed the firm’s trading position, Sanlam Kenya Plc, Group CEO Dr Patrick Tumbo reiterated that the business continues to take a long-term view in the execution of its strategy and will build on current successes in its insurance business to grow profitably into the future.

In its 2020 annual report, the firm had disclosed the significant currency exposure on the borrowings, which stood at Sh2.976 billion at the end of the last financial year. The loan proceeds, the disclosure confirmed, were in US$, and the loan interest payments were also in US$.

“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,” Dr Tumbo said.

He added that “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.”

As part of its strategic business plan, Dr Tumbo disclosed that the firm is executing a sustainable plan considering the impacts of the covid-19 pandemic on the economy and insurance industry as a whole.

He said the plan focuses on enhancing value drawn from the firm’s business digitization initiatives, including adopting e-commerce insurance products distribution and sales. He said the utilization of digital solutions would positively reduce the firm’s operating cost base while improving customer experience.

He said Sanlam Kenya has also structured several strategic partnerships, which are expected to bear benefits from the second half of the year going forward.