Sanlam sinks into Sh1.98 billion loss in 2018

NAIROBI, KENYA: Wealth management firm Sanlam has recorded Sh1.98 billion loss for the financial year ended December 2018

According to the insurer, several institution in which the group’s long-term insurer had invested came under financial distress, which led to the impairment of approximately Sh1.14 billion in investments. Primarily debt notes and equity in Kaluworks, Real People and Athi River Mining.

The company also notes that the regulator revised its reserving basis, which led to an additional Sh0.65 billion reduction in earnings.

“The operating environment was challenging, several institutions in various sectors came under financial distress triggering investor loses from all sectors of economy,” notes Sanlam.

Last year while issuing a profit warning, the firm said it would put in place a turnaround plan to change its investment policy and reorganise management while also enhancing the use of technology

“Consequently, the management in consultation with the board will put together a turnaround strategy geared at advancing the group’s performance,” said the Sanlam board chairman, John Simba, in the press notice.

In 2017, Sanlam suffered the pain of writing off Sh1 billion after it became apparent that the Chase Bank and Imperial Bank bonds it had invested in were irredeemable.