BUSINESS

No Dividend For Sanlam Allianz Shareholders Even as Profit Hits Ksh832B

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Sanlam Allianz profit 2025
Sanlam Kenya Chairman Dr John Simba (left) with Group CEO Dr Patrick Tumbo (right) at a past event.
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Sanlam Allianz Holdings (Kenya) Plc has delivered a resilient performance in 2025 despite a competitive operating environment, recording a profit after tax of Ksh832 million. Sanlam Allianz Holdings Group CEO Dr Patrick Tumbo said this was achieved within a macro economic environment of declining interest rates, which placed significant pressure on traditional investment yields.

Profit before tax was Ksh1.315 billion. Mr Tumbo said this outcome reflects disciplined underwriting, prudent expense management, and continued optimisation of the Group’s reinsurance structures. “The business achieved operational efficiency, strengthened internal controls, and made progress in digitisation,” he added.

Despite the recording impressive profit, the Board of Directors did not recommend the payment of a dividend for the financial year ended 31st December 2025. “This decision is rooted in a strategy of preserving capital for financial stability and growth,” Mr Tumbo said.

Financial Performance Metrics

The Group’s diversified revenue streams and strong fundamentals are reflected in the following key indicators:

  • Profit after tax: Stood at Ksh 832 million: Achieved within a macro economic environment of declining interest rates, which placed significant pressure on traditional investment yields
  • Insurance Revenue: Stood at Ksh 4.41 billion, demonstrating steady market demand for our savings and protection products.
  • Net Insurance Service Result: Surged by 46% to Ksh 951 million, reflecting a significant leap in improved underwriting and claims management.
  • Net Finance Expenses from Insurance Contracts: Increased to Ksh 3.88billion, representing the financial adjustments and interest credited to policyholders as the Group honoured its long-term contractual obligations.
  • Total Assets: The Group’s balance sheet remains robust with total assets of Ksh 39.37 billion. .

“Our 2025 results demonstrate strong execution of our strategic initiatives, underpinned by the resilience of our core business. 2025 also marked a year of transformation by executing a successful rights issue,” said Mr Tumbo.

Shareholders’ Equity and Capital Position

The Group’s capital structure underwent a transformational strengthening in 2025. Total capital and reserve surged to Ksh4.75 billion, up from Ksh1.92 billion in 2024, primarily driven by the successful completion of the Rights Issue.

This capital injection facilitated deleveraging strategy, with total borrowings slashed by 66% to Ksh1.42 billion (down from Ksh4.22 billion). This move not only reduced finance costs by 72% but also fortified our balance sheet.

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Written by
BT Correspondent -

editor [at] businesstoday.co.ke

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