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Sanlam Kenya Plc posted a sharp drop in earnings for the first half of 2025, even as the insurer completed a major recapitalization and debt repayment drive that has reshaped its balance sheet.
- •Profit after tax fell 89% to KSh 31.0Mn from KSh 282.2Mn a year earlier, while earnings per share dropped to 0.10 from 1.88 following dilution from a rights issue.
- •The weak performance was driven by a swing to a loss in insurance service result at–KSh 10.1Mn, compared to a profit of KSh 86.2Mn in H1 2024, and a 76.3% decline in net financial result to KSh 140.2Mn.
- •Insurance revenue rose 6.1% toKSh 3.737Bn and investment return climbed 34.0% to KSh 3.075Bn, but these gains were insufficient to offset higher expenses.
| Metric | H1 2025 | H1 2024 | YoY % |
|---|---|---|---|
| Insurance revenue | 3.737Bn | 3.523Bn | +6.1% |
| Insurance service result | –10.1Mn | 86.2Mn | –111.7% |
| Investment return | 3.075Bn | 2.294Bn | +34.0% |
| Net financial result | 140.2Mn | 591.5Mn | –76.3% |
| Profit before tax | 49.9Mn | 494.5Mn | –89.9% |
| Profit after tax | 31.0Mn | 282.2Mn | –89.0% |
| EPS | 0.10 | 1.88 | –94.7% |
| Total assets | 41.35Bn | 39.17Bn | +5.6% |
| Financial assets | 32.86Bn | 30.13Bn | +9.1% |
| Cash & cash equivalents | 1.431Bn | 2.008Bn | –28.7% |
| Borrowings | 1.192Bn | 4.216Bn | –71.7% |
| Insurance contract liabilities | 30.25Bn | 27.54Bn | +9.9% |
| Shareholders’ funds | 3.854Bn | 1.772Bn | +117.7% |
First Disclosures since Rights Issue
The insurer completed a fully subscribed KSh 2.5Bn rights issue earlier this year, which it used to retire a KSh 4Bn loan owed to Stanbic Bank. This reduced borrowings by 72% and strengthened shareholders’ funds by 118% to KSh3.85Bn. The capital raise, though stabilizing, diluted shareholders by more than 77% and initially triggered a 43% stock price drop.
The Capital Markets Authority later granted Sanlam Kenya’s majority owners, Hubris Holdings and Sanlam Allianz Africa, an exemption from making a mandatory takeover offer after their combined control rose to 71.47% through the rights issue.
On the day of results release, Sanlam Kenya shares dropped nearly 10% to KSh 8.20, valuing the insurer at KSh 1.31Bn.
Sanlam Kenya has strengthened its balance sheet and capital base, but its core challenge remains restoring profitability. The company will need to translate its improved financial footing into stronger underwriting results to win back investor confidence.