Local non-bank financial services provider Sanlam Kenya (formerly Pan Africa Insurance Holdings) has announced a Ksh317 million full year pre-tax profit for 2016, a jump up from Ksh54 million posted the previous year.
The Nairobi Securities Exchange (NSE) listed firm attributed the profit growth to improved performance by the firm’s general insurance business, which managed to book a 95% reduction in its underwriting loss in line with growth in top line and prudent reserving. This year, Sanlam Kenya is proposing to retain dividends payable as it seeks to build its capital reserves to ensure full compliance with the new Risk Based Capital and regulatory regime.
Sanlam Kenya Group CEO Mugo Kibati said the firm’s performance had been affected by a number of market challenges experienced within the year under review, including a depressed performance of the stock market, changes in the life business valuation and developments in the local banking sector.
The firm, he said, had however managed to weather some of the challenges with significant growth from its general insurance and asset management businesses even as the life business suffered slower growth last year.
Mr Kibati reiterated that the firm’s recent profit withdrawal notice had been necessitated by a reduction in the level of impairment provisions earlier considered for some of the firm’s investments in Chase Bank (In-Receivership).
At Sanlam General Insurance, the firm grew its gross written premium by 58% to KSh1 billion up from Ksh633 million in 2015. The firm which was one of the first to market with a Marine Cargo Insurance (MCI) product has registered a marked improvement in its first full year in the group, managing to reduce its operating loss before tax by 92% to Ksh24 million down from Ksh302 million loss reported in 2015.