Sanlam Kenya, a subsidiary of the South African financial services Group, has plugged holes on its property business, stopped the bleeding of its life insurance book and recouped expenses from its recovery strategy, to return to profitability.
Listed as an Insurance, Investments, and Retirement Group, Sanlam Kenya recorded a pre-tax profit of KSh 550 million in 2019 compared to a pre-tax loss of KSh 2.1 billion made the prior year.
The net profit attributable to the firm’s shareholders grew to KSh 114 Million compared to the previous year’s loss of KSh 1.98 billion.
With a balance sheet worth more than KSh 29 billion in assets, Sanlam Kenya Group CEO Dr Patrick Tumbo attributes the firm’s financial recovery to consistent execution of a corporate turnaround strategy.
Sanlam focused on improving its operating efficiencies while paying keen attention to the clients.
“At Sanlam, we have been pursuing our earlier announced strategy that focused on cost containment and aggressively growing our revenue base, both in the short and long term,” said Dr Tumbo.
The Group’s financial results for year ended 31st December, 2019 indicates that there was a 50 percent improvement in Total Income to KSh 8.9 billion.
Net benefits, claims and expenses increased by 5 percent while Gross Premium Income improved by 10 percent as a result of growth in the short-term insurance business. Investment performance improved to KSh 2.7 billion compared to KSh 187 million the previous year.
Sanlam Group’s long-term insurance business reported a net profit of KSh 636 million compared to a prior year’s net loss of KSh. 627 million. The short- term insurance business delivered a 30 percent growth in gross written premiums. Total capital and reserves improved by 9 percent to KSh 1.74 billion.
The Group’s Board of Directors resolved to hold its Annual General Meeting (AGM) on Thursday 7th May 2020. It did not recommend the payment of a dividend for the financial year ended 31st December 2019.
The company maintains a positive outlook for 2020 and expects to ride on its improved insurance business and higher returns from a rapidly growing asset management portfolio.
Sanlam Kenya is part of the South African financial services group headquartered in Bellville, Western Cape.
The group operates in South Africa, Namibia, Botswana, Swaziland, Zimbabwe, Mauritius, Malawi, Zambia, Tanzania, Rwanda, Uganda, Kenya, Ghana, Nigeria, Mozambique, India, Malaysia and the UK.