Non-bank financial services provider Sanlam Kenya has announced a loss before tax of Sh 1.5 Billion for the half year period ended June 2018 from a profit of Sh 152.5 Million posted in a similar period in 2017. Its loss after tax was at Sh 1.5 Billion from a profit of Sh 90.5 Million.
The listed company attributes the loss to a 100% prudent impairment of distressed financial assets amounting to Sh 1.114 billion. The company says it had invested in a number of corporate bonds some of which include Athi River Mining (under administration) Kshs 574 million, Real People Kshs 398 million and Kaluworks Kshs 169 million.
Gross written premium were unchanged at Sh 3.3 Billion while net earned premiums fell by 8.4% to Sh 2.5 Billion. Total income fell by 14% to Sh 3.7 Billion while investment income fell by 24% to Sh 1.2 Billion from Sh 1.6 billion posted during the same period last year. Net claims and policy holder benefits reduced by 11% to Sh 2.4 Billion while total expenses grew significantly by 32% to Sh 5.5 Billion.
The company’s recently appointed CEO Patrick Tumbo, says they will be “adopting a variety of remedial interventions including an enhanced investment policy” which are expected to “accelerate growth from alternative market segments and new revenue streams including enhanced focus on the firm’s General and Life Insurance businesses.”
