Sanlam posts Ksh.292 million half-year loss

Sanlam posts Ksh.292 million half-year loss

Insurer Sanlam Kenya Plc has seen its half-year loss stretch to Ksh.291.9 million from a narrower loss of Ksh.99.1 million in June 2020.

The near tripling of losses for the underwriter is highly attributable to swollen claims and payouts to policyholders across the six months.

Sanlam’s net claims and policyholder benefits rose by almost two fold to Ksh.4.1 billion from Ksh.2.5 billion last year.

This to push up its total benefits, claims and other expenses in the period to a higher Ksh.6.2 billion from Ksh.4.4 billion.

“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,” noted Sanlam Kenya Group CEO Patrick Tumbo.

The rising overhead costs have served to offset growth in underwriting where Sanlam’s gross written premiums improved by 37.2 per cent to Ksh.5.9 billion to lift the Group’s total income in the period.

Nevertheless, the insurer saw a rebound in cash generation in the six months, yielding Ksh.742.6 million after the consumption of Ksh.459.9 million last year.

Meanwhile, Sanlam says it has restructured $27 million loans into a Ksh.3 billion facility with a local bank to mitigate against future forex losses occasioned by the weakening of the shilling against the US dollar.

“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,” added Dr. Tumbo.

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Sanlam Kenya Plc Dr. Patrick Tumbo

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