This archive report was first published on 21 August 2020.
On August 21, 2020, Sanlam Kenya reported a substantial drop in its half-year earnings, plummeting to Sh99.1 million compared to Sh639.7 million in the same period the previous year.
The COVID-19 pandemic had a devastating impact on the economy, affecting supply chains, consumption, and corporate earnings across various sectors, including manufacturing, agriculture, transport, hospitality, and financial services.
According to Sanlam Kenya Group Chief Executive Officer Patrick Tumbo, the pandemic's effects were far-reaching, with the insurance industry also being severely impacted. 'The Coronavirus pandemic affected the supply of goods and services as well as consumption at all levels, both locally and globally,' Tumbo stated.
Experts have revised the country's economic growth projections, predicting a possible 1% contraction in GDP for the current fiscal year, with recovery expected in 2021.
Despite the challenging economic environment, Sanlam Kenya's short-term insurance business saw a 35% increase in performance, reaching Sh73 million, while its long-term insurance business recorded a 10% growth, reaching Sh229 million.
The company's cash and cash equivalents also improved, rising from Sh1.67 billion to Sh1.75 billion in the current year. Furthermore, Sanlam Kenya's solvency in the insurance subsidiaries improved, with the long-term insurance business exceeding the prescribed limits.
