Insurers Sanlam Kenya Plc and CIC Insurance Group have both sunk into losses reporting Ksh 78 million and Ksh 296.8 million respectively in their full-year 2020 trading results.
For Sanlam, the loss was a 92% decline against Kshs 550 million in 2019 primarily attributed to the Covid-19 pandemic impact on the local and international economies.
Sanlam’s Gross premium income had increased by 24.4 %to Kshs 8.69 billion up from Kshs 6.99 billion posted the previous year due to growth in both the long and short-term insurance businesses.
The firm’s total income he added had accelerated to Kshs 9.42 billion up from Kshs 8.89 billion recorded in 2019, representing a 6% growth.
With increased claims and lower investment returns, the firm closed the year on a Kshs 78 million after-tax loss representing a decline from the prior-year after-tax profit of Kshs 114million.
At the business operating level, the firm’s insurance subsidiaries, Sanlam Life and Sanlam General Insurance Ltd, generated Kshs 499 million and Kshs 138million in after-tax profits.
Sanlam Life’s Gross written premium grew to Kshs 5.21 billion up from Kshs 4.38 billion posted the previous year. The firm’s investment income also maintained a positive trend growing to Kshs 2.33 billion from Kshs 2.20 billion in the prior year.
The life insurance firm’s investments continued to hold steady at Kshs 26.3 billion, up from Kshs 24.7 billion posted the previous year and significantly buoyed by more than Kshs 20.48billion holding of government securities at the close of the trading year.
Sanlam General Insurance’s Gross written premium grew to Kshs 4.06 billion, up from Kshs 2.85 billion. The firm’s total income grew to Kshs 2.59 billion, up from Kshs 2.00 billion posted in 2019.
CIC’s gross written premiums decreased to KSh16.99 billion at the end of 2020, from KSh17.7 billion at the end of 2019.
CIC’s claims and policyholder benefits fell to KSh9.95 billion from KSh10.04 billion the year before.
The firm’s total assets grew by 9.9% to KSh38.8 billion and its total liabilities also grew by 13.5% to KSh31.2 billion as at 31st December 2020.
CIC generated KSh2.3 billion cash from operating activities in the year under review and used KSh1.8 billion in investing activities.