Sanlam Kenya few weeks ago retracted its profit warning statement on revaluation of its long term insurance business.
The company’s Full Year Total income fell by 1.12% to 7.15 Billion vs. 7.24 Billion posted in the previous year.
Benefits, claims and other expenses fell by 5% in the full year period to Sh 6.8 Billion with a net change in contract liabilities falling by 33% to Sh 489 Million.
Gross written premium was up by a thin margin of 0.83% to Sh 5.2 Billion compared to Sh 5.18 in the previous period while gross benefits and claims paid increased by 16% to Sh 4.2 Billion. Loss ratio stood at 80% compared to the previous year’s 70%.
Fair value gains was at Sh 341 Million compared to Sh 637 Million in FY 2015, a drop of -29%.
Net change in contract liabilities was down by a whopping 33% to Sh 489 Million while Cash resources fell by 36% to Sh2.5 billion compared to 3.92 Billion in 2015.
Profit before tax was at Sh 317 Million with net Profit at Sh 70.6 Million.
“Life Insurance Gross written premium declined by 5% to 4.4b from 4.6b in 2015. Retail business was impacted by the expected effects of streamlining the distribution channels and agency force aimed at improving productivity going forward.” The company said in a statement.
“Income from property sales declined due to a depressed property market” It added.
The company did not recommend any dividends.
