Sanlam sinks to Ksh.78 million full-year loss

Insurer Sanlam Kenya Plc has fallen into a Ksh.78.2 million full-year loss for the period ended in December 2020, swinging from a Ksh.114.4 million profit in 2019.

The loss is largely attributable to rising claims and other expenses which rose to equal income booked in the period.

Combined, total benefits paid out along with claims and expenses rose by 13.2 per cent to Ksh.9.4 billion from Ksh.8.3 billion a year earlier.

Gross benefits and claims paid out rose the fastest hitting Ksh.6.5 billion from a low Ksh.5.5 billion.

Total income booked in the period equaled overall costs having grown from Ksh.8.9 billion in 2019.

The growth in income was nevertheless dented by Ksh.360.9 million fair value losses booked in the period driven largely by effects of the COVID-19 pandemic on the valuation of the Group’s net assets.

Sanlam Chief Executive Officer Patrick Tumbo is nevertheless expectant of a turnaround this year driven in part by the introduction of new products and ongoing digitization.

“The business retains a positive outlook for the year 2021 with all our operating ratios still robust. We remain committed to creating and protecting the wealth of our clients and other stakeholders through innovative product offerings and employing the most efficient processes,” he said.

Sanlam’s earnings per share slacked to minus 91 cents from a higher 79 cents following the recorded loss.

Subsequently, the board of the underwriter has not recommended the payment of a dividend to shareholders for the operating period.