Sanlam Kenya Group, an insurance, investment, and retirement firm has reported a net loss of KSh 127 million for the full year ended 31st December 2023 compared to KSh 83 million net loss reported in the prior year.
- Sanlam Kenya Directors attribute this decline in net earnings to the prevailing high-interest rates regime that has led to the firm’s increased finance costs.
- The Group’s Balance Sheet size shrank from KSh 36.7 billion in 2022 to KSh 35.5 billion in 2023.
- Loans to customers declined from KSh 92.2 million in 2022 to KSh 86.2 million in 2023.
- Owners of the Group suffered a comprehensive loss of KSh 161.1 million in 2023 from a loss of KSh 72.7 million in 2022.
Sanlam Group’s General Insurance subsidiary posted a net loss of KSh 126.6 million, a significant increase from a loss of KSh 82.9 million in 2022. Insurance Revenue fell from KSh 8.3 billion in 2022 to KSh 6.9 billion in 2023, an indication of the tough business environment that underwriters underwent in 2023 as inflation ate into the incomes of many policyholders.
Loss per share for the general insurance subsidiary declined from KSh 0.50 cents per share to KSh 1.12 per share in 2023.
In the Life Insurance subsidiary, insurance revenue declined from KSh 4.3 billion in 2022 to KSh 4.1 billion in 2023 while investment returns from this business fell to KSh 801.4 million in 2023 from KSh 1.8 billion in 2022.
Sanlam Life Insurance Limited, recorded a net profit of KSh 534 million, up 15% growth from KSh 464 million net profit the prior year.
Sanlam Kenya Group posted a fall in deposits received in the administration of its pension funds, from KSh 388.5 million in 2022 compared to KSh 311.1 million received in 2023. Withdrawals from the pension fund increased to KSh 1.1 billion in 2023 compared to KSh 690.5 million in 2022.
The Board of Directors does not recommend the payment of dividends for the financial year ended 31 December 2023, same as the prior year.
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