Sanlam slides to a Ksh.99 million half-year loss

Sanlam slides to a Ksh.99 million half-year loss
FILE | (from left) Sanlam Kenya CFO Kevin Mworia with Sanlam Life CEO Stella Njunge and Group CEO Patrick Tumbo

Insurer Sanlam has posted a Ksh.99.1 million loss through its first half of the year operations, wiping out a Ksh.639.8 million profit in a corresponding period in 2019.

The collapse in profitability is largely attributable to high operating costs dented by swelling claims for compensation by policy holders.

At the same time, Sanlam marked a slowdown in income as earnings from investment shrunk in the period.

The company’s total costs rose by 19 percent to Ksh.4.4 billion from Ksh.3.7 billion while total income slumped by 8.5 percent to Ksh.4.3 billion from a higher Ksh.4.7 billion last year.

Sanlam’s investment and other income slumped by 36.8 percent to Ksh.1.2 billion while net claims swelled by 25 percent to Ksh.2.5 billion from a flat Ksh.2 billion last year.

The loss which triggered higher liabilities by the underwriter has seen Sanlam’s net assets shrink to Ksh.1.6 billion from Ksh.2.2 billion last year.

The company earning per share has descended to a negative 83 cents from a greater Ksh.4.44 in June 2019.

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