Sanlam Kenya withdraws profit warning

Listed non-bank financial services provider, Sanlam Kenya, has withdrawn the profit warning notice it had issued earlier ahead of its full year results. The Nairobi Securities Exchange (NSE) listed firm in regulatory filings and a Public Notice dated 9th February 2017, cancelled the warning on a substantial fall in profitability  issued on 29th December 2016, reflecting the prospect of posting good growth in its yet to be released full year results.

The withdrawal notice, jointly signed by Sanlam Kenya Chairman, Dr John Simba and Group Chief Executive Officer, Mr Mugo Kibati attributes the revised position to a reduction in the level of actuarial reserving for its life insurance businesses.

Speaking when he confirmed the new developments, Mr Kibati said the profit withdrawal notice had also been necessitated by a reduction in the level of impairment provisions, earlier considered for some of the firm’s investments in banking entities.

Mr Kibati stressed that the withdrawal was not based on a change of accounting system and had been done with the approval of the Capital Markets Authority.

“The withdrawal has been undertaken based on engagements with the relevant regulatory agencies as part of our corporate governance policies,” Mr Kibati said. “A review on our life business liabilities and impairment provisions against some of our banking exposures has necessitated this withdrawal and the earlier profit warning is no longer valid.”

The company, he further said, has stepped up the implementation of its robust five-year growth strategy. The strategy last year was headlined by a strategic rebranding process with all the former Pan Africa Insurance Holdings subsidiaries adopting a single identity under the Sanlam brand.

In Africa, the Sanlam Group continues to enjoy pride of place as the single largest non-bank financial services provider with interests in life, general insurance and wealth management solutions among others. In Kenya, the group is making steady progress with the implementation of its new five-year strategy.

[crp]