Listed non-bank financial services provider Sanlam Kenya, on Thursday, reported an improvement in operating results, posting a pre-tax profit of Ksh 550 million compared to a prior year’s loss before tax of Kshs. 2.1 billion.
The insurer attributes this to increased underwriting and higher investment income with the group’s insurance subsidiaries anchoring the turnaround.
Gross premium income increased by 11.1 percent to Ksh.7 billion with its short-term underwriting posting a 30 percent growth in the period.
The total income grew by 50.8 percent to Ksh.8.9 billion with investment income rising to Ksh.2.4 billion as 2018 fair value losses turned a profit to return Ksh.422 million with the company further sieving out its impairment in financial assets to a Ksh.2.6 million positive gain.
Total capital and reserves improved by 9% to Kshs.1.74 billion.
However, it had to incur a cost of KSh53 million to compensate 23 staff that it fired through the Voluntary Early Retirement (VER) Program with the aim of cutting the company’s wage bill.
Sanlam Kenya Chief financial Officer Kevin Mworia said: “The cost of the lay-offs was KSh53million after 23 staffers met the benchmark of the VER program where the decision was majorly informed by a restructuring of the business.”
Insurance Firm Sanlam Kenya to Layoff Workers in Voluntary Retirement Plan
The business retains a positive outlook for the year 2020. Revenue and earnings from the Groups insurance business are expected to improve while the investment return is expected to reflect positive results from Improved asset management.
The Board of Directors did not recommend the payment of dividends for the year ended 31 December 2019.
It is expected to hold its Annual General Meeting Thursday 7th May 2020.
