Sanlam’s share price jumped 11.4% on Thursday after reporting an increase in net profit to KSh 1.05 billion in 2024 from a loss of KSh 126.6 million in 2023.
- •The listed insurance firm bounced back to profits after a 4-year loss making streak on the back of a surge in investment income.
- •Investment return, including returns from government securities and fixed deposits, increased by 369.9% to KSh 5.3 billion in 2024 from KSh 1.2 billion in 2023.
- •Insurance revenue – from insurance premiums – increased by 6.1% to KSh 7.4 billion buoyed by growth in the general insurance business.
“The increase in earnings was due to improved underwriting profit and improved loss ratios further boosted by better investment results,” Sanlam said in its financial statements.
Operating expenses decreased by 41.8% to KSh 128.5 million in 2024 from KSh 220.9 million in 2023. However, finance costs went up 21.5% to KSh 734.8 million owing to the high interest rates in the period.
Sanlam’s tax expenses went up 64.5% to KSh 606.2 million million from KSh 369.4 million. About KSh 193.8 million was channeled towards directors’ emoluments from KSh 138.2 million in 2023.
Sanlam Kenya also reported a net financial result of KSh 1.5 billion, a significant improvement from KSh 388.3million in 2023, bolstered by a net financial income from reinsurance contracts of KShs 42.3 million.
Sanlam Life Insurance recorded a profit after-tax of KSh 1.3 billion, a 158% growth from KSh 533 million recorded in the prior year, while Sanlam General Insurance netted KSh 337 million from KSh 123 million in 2023.
Sanlam did not declare dividends in the period, marking more than a decade long without dividends. The listed insurer closed Thursday at KSh 8.00, lifting the year to date performance to 62%.
