Sanlam Kenya reported a drop in its half year earning to hit Sh99.1 million compared to Sh639.7 million registered in a similar period of last year.
Sanlam Kenya Group Chief Executive Officer Patrick Tumbo said that the period review was challenging to all segments of economy due to Coronavirus pandemic which has been extended in the second half of year.
“Coronavirus pandemic affected supply of goods and services as well as consumption at all levels, both locally and globally. Corporate earnings are greatly affected in key segments of economy such as manufacturing, agriculture, transport, hospitality and financial services,”Tumbo said.
“Insurance industry was not spared as the knock-on effects in segments reduced the ability of both corporates and individuals to spend on insurance. Experts revised the economic growth projections for the country, pointing to a possible contraction in GDP by 1 percent in current fiscal year with recovery expected in 2021,”he added.
NSF listed firm saw its Gross written premium in the first half of year improve by 17% compared to previous year. Short term insurance saw its performance by 35% compared to prior year to hit Sh73 million while long term insurance [Sanlam Life] registered a 10% record of Sh229 million respectively.
Cash and cash equivalent improved from Sh1.67 billion to Sh1.75 billion in current year while solvency in insurance subsidiaries improved compared to the same period last year, with long term insurance business exceeding the prescribed limits. Sanlam is poised to weather, the challenging economic environment in 2020 and post better results in 2021 and long term.Follow us in social media: