Sanlam Kenya PLC has reported a loss of KSh 99.14 million in 2020 H1, down from a profit of KSh 639.67 million in the same period last year. The losses come from rising expenses and claims, against the backdrop of lower earnings.
Sanlam recorded a surge in net premium in the first half of this year, rising by 9.3% from Ksh 2.75 billion in June 2019 to Ksh 3.01 billion in June 2020. However, income from investment fell by Ksh 678.6 million YoY, dropping total income to Ksh 4.25 billion, 9% short of its revenue during the same period last year.
The company noted a rise in expenditures across the board, primarily driven by ballooning claims. Net claims and benefits to policyholders grew 24.3% to Ksh 2.48 billion, from Ksh 1.99 billion in the first six months of 2019.
Unaudited results for the company show Sanlam’s finance and operating costs rose in 2020 H1 compared to 2019 H1. Finance costs increased from Ksh 191 million to Ksh 280 million whereas operating and other expenses grew from Ksh 1.56 billion to KSh 1.64 billion.
The culmination of growing expenses and thinning income from investments is behind the Ksh 99.14 million loss.