Sanlam Kenya narrowed its loss to Sh542 million in 2021 compared to a loss of Sh626million in 2020 majorly attributed to increased premium income.
The firm has been undertaking revenue growth strategies for both its Life and General insurance subsidiaries and has attributed its performance to a challenging market.
The Group reported a Gross Premium Income of Sh12 billion representing a 38 per cent improvement over the previous year’s Sh8.7 billion.
The firm’s net written premium also registered a 34 per cent growth to close at Sh 9.2billion, up from Sh 6.8 billion, while total assets improved by 12 per cent to Sh34.7 billion.
Sanlam Life Insurance recorded a Gross Premium Income of Sh7.4billion which is a 41 per cent growth over the prior year and posted a net profit of Sh642 million, a 29 per cent rise from Sh498million in 2020.
Speaking when he confirmed the release of the results’, Sanlam Group CEO Dr Patrick Tumbo noted that the life insurance subsidiary had performed significantly well and helped sustain the Group’s resilient performance.
“After the successful implementation of revenue growth strategies in both short- and long-term insurance business, management’s efforts have been redirected at ringfencing Sanlam Life successes to date while improving future results. Sanlam General will translate its notable revenue growth into a profitable result going forward,” Group CEO Dr Patrick Tumbo.
As part of a recovery strategy, the listed company said will continue to emphasise innovation to improve the Group’s insurance offering to the market with a positive return to profitability prospects.
The group’s General Insurance reported a Gross Premium Income of Sh4.9 billion representing a 19 per cent growth. However, the business reported an after-tax loss of Sh 501 million on account of prudent provisioning of claims reserves and insurance counterparty balances.
At the group level, the Nairobi-Exchange listed company’s net paid out benefits and claims increased to Sh8.6 billion within the year under review, up from Sh5.7 billion in 2020.
Despite slower business growth and higher claims lodged, the group said it has maintained sufficient reserves to facilitate the timely settlement of claims.
“At Sanlam Kenya and through our Sanlam Life Insurance Limited and Sanlam General Insurance Limited, we are resilient and remain well-positioned to continue meeting the unique client needs in the General and Life Insurance space as we embark on an accelerated business recovery journey,” Patrick Tumbo.
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