•It has reported a Sh99.1 million after-tax loss for the half-year down from a Sh639.6 million net profit posted within the same period last year.
•Short term insurance (Sanlam General) however improved by 35 per cent compared to the prior year, while long term insurance (Sanlam Life) posted a 10 per cent growth. Sanlam Kenya CFO Kevin Mworia, Group Chairman Dr John Simba and Group CEO Dr Patrick Tumbo/COURTESY Local non-bank financial solutions provider–Sanlam Kenya has reiterated plans to step up its innovation function to mitigate the impact of Covid-19 on it’s business.
In its half-year trading results , the Nairobi Securities Exchange (NSE) listed firm has reported a Sh99.1 million after-tax loss down from a Sh639.6 million net profit posted within the same period last year.
Sanlam Kenya Group CEO Patrick Tumbo has said the half-year under review was challenging to all segments of the economy and this has continued in the second half of the year.
According to Tumbo, the Coronavirus pandemic has affected the supply of goods and services as well as consumption at all levels, both locally and globally.
Corporate earnings were greatly affected in key segments of the economy, such as manufacturing, agriculture, transport, hospitality and financial services, he notes.
“The insurance industry was not spared as the knock-on effects in other segments reduced the ability of both corporates and individuals to spend on insurance,” Tumbo said in a statement.
Experts have revised the economic growth projections for the country, pointing to a possible contraction in GDP by one per cent in the current fiscal year with recovery only expected in 2021.
Considering the uncertainty associated with the resolution of the pandemic and severity of its economic and social impacts, Tumbo said the Sanlam Kenya Board had decided to set aside additional reserves to mitigate against future shocks.
He noted that the capital markets had also been significantly affected, with the various stock indices depreciating in value over the first half of the year.
“All these elements have had a negative impact on our performance including foreign exchange losses arising from our US dollar denominated credit facility,” Tumbo explained.Overall, the Group’s performance reflects the current state of the operating environment albeit with an improvement in its business fundamentals.Gross written premium in the first half of the year improved by 17 per cent compared to the previous year.Short term insurance (Sanlam General) improved by 35 per cent compared to the prior year, while long term […]