This archive report was first published on 21 August 2019.
Sanlam Kenya, a financial services firm listed on the Nairobi Securities Exchange, has made a remarkable comeback to profitability, posting a Sh639.7 million profit for the first half of 2019.
This achievement marks a significant turnaround from the Sh1.5 billion loss recorded in the same period last year, a testament to the company's effective turnaround strategy.
According to Sanlam Kenya Group Chief Executive Officer (CEO) Patrick Tumbo, the company's focus on growing its core insurance business through strategic partnerships, human capital investment, and revamped distribution strategy has yielded positive results.
"At Sanlam Kenya, we have been focusing on the growth of our core insurance business through strategic partnerships, human capital investment, revamped distribution strategy and other sales and marketing initiatives," Tumbo said.
He added that the company's core insurance revenues grew by 17% to Sh3.65 billion, up from Sh3.11 billion reported over the same period last year, despite an increasingly competitive market environment.
Sanlam's total income derived from net earned premiums improved by 84% to Sh4.6 billion from Sh2.5 billion in H1 2018, while investments raised non-insurance incomes to Sh1.9 billion compared to Sh41 million over the same period last year.
Efforts to recover Sanlam's impaired assets amounting to more than Sh2.2 billion from institutions under financial distress are still ongoing and remain a top priority for the business this year.
Sanlam's improved financial results come as a welcome relief following the company's Sh1.98 billion loss posted for the full year ended December 2018.
