Financial services firm Sanlam has reported a Sh99.1 million net loss in the first six months of the year, attributed to the impact of Covid-19.
Sanlam Kenya Group Chief Executive Patrick Tumbo (pictured) said the half year proved challenging for all sectors of the economy and had continued into the second half of the year.
“The coronavirus pandemic affected the supply of goods and services, as well as consumption at all levels, both locally and globally,” he said while releasing the results.
“The insurance industry was not spared as the knock-on effects in other segments reduced the ability of both corporates and individuals to spend on insurance.”
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Over a similar period last year, Sanlam reported a Sh639.6 million after-tax profit.
Tumbo said in light of the uncertainty associated with the pandemic, the listed firm had resolved to set aside additional reserves to mitigate against future shocks.
He further noted that the capital markets had also been significantly affected, with the various stock indices depreciating in value over the first half of the year.
“All these elements have had a negative impact on our performance, including foreign exchange losses arising from our US dollar-denominated credit facility,” said Tumbo.
Gross written premiums in the first half of the year improved by 17 per cent compared to the previous year.
Short-term insurance (Sanlam General) improved by 35 per cent compared to the prior year, while long-term insurance (Sanlam Life) posted 10 per cent growth over the prior year.
Tumbo said innovation and an enhanced customer value proposition are expected to continue supporting the group’s performance in the future.
The firm has implemented online selling and paperless transactions in a bid to improve operations.
