Sanlam Kenya, listed on the Nairobi Securities Exchange, reported a Sh1.97 billion loss for the financial year ending December 2018, marking a sharp decline from the Sh53 million profit recorded in 2017.
The insurer attributed the loss to impairment charges of Sh1.14 billion from debt notes and equity investments in companies facing financial distress, including Kaluworks, Real People, and Athi River Mining. A revised reserving basis mandated by the Insurance Regulatory Authority added an additional Sh650 million to the losses.
Total income fell 20% to Sh5.9 billion, driven by fair value losses, while operating expenses rose 12.9% to Sh8 billion. Net written premiums declined marginally by 0.83% to Sh5.37 billion.
The company warned of non-recurring impacts from these events, leading to a net consolidated loss after tax. Shareholders will face another year without dividends following the annual general meeting in May 2019, after a profit warning in early 2019 citing 100% impairment of corporate bonds and slower economic growth.
