This archive report was first published on 20 August 2020.
On August 20, 2020, Sanlam Kenya PLC released its unaudited results for the first half of 2020, revealing a significant loss of KSh 99.14 million. This decline in profitability comes on the heels of a profit of KSh 639.67 million in the same period the previous year.
Despite a 9.3% surge in net premium income, rising from KSh 2.75 billion in June 2019 to KSh 3.01 billion in June 2020, the company's total income fell short of its revenue in the same period last year. Investment income dropped by KSh 678.6 million year-over-year, resulting in a total income of KSh 4.25 billion, a 9% decrease.
Sanlam attributed the increase in expenditures to ballooning claims, with net claims and benefits to policyholders growing by 24.3% to KSh 2.48 billion, up from KSh 1.99 billion in the first six months of 2019.
The company's finance and operating costs also rose in 2020 H1 compared to 2019 H1. Finance costs increased from KSh 191 million to KSh 280 million, while operating and other expenses grew from KSh 1.56 billion to KSh 1.64 billion.
