Sanlam Kenya posts massive Ksh. 1.9B loss after corporate bonds write off

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Sanlam Kenya has announced a significant Ksh. 1.9 billion loss in the financial year ending 31st December 2018. This is down from a Ksh. 53 million net profit it had registered in 2017.

The company had issued a profit warning in August 2018 after it registered a Ksh. 1.5 billion loss for the half year ended 30th June 2018.

Total income fell to Ksh. 5,913 billion in 2018 as compared to Ksh. 7,374 in 2017. Expenses increased to Ksh. 8,042 billion from Ksh. 7,123 billion in the previous year. The rise in expenses was attributed to a 100% write off of corporate bonds of Ksh. 1.152 billion. The corporate bonds were issued to companies such as ARM Cement (currently in administration), Real People and Kaluworks and these companies have been unable to pay.

The Board of Directors will not be recommending the payment of dividends for the year ended 31 December 2018 . There will be an Annual General Meeting for the company that is scheduled on Thursday 9th May 2019.

After such a forgettable year, Sanlam plans to focus purely on its insurance business and on recapitalizing both the Sanlam Life and Sanlam General business in readiness for the 2020 Risk Based Capital deadline. According to the Sanlam Kenya PLC Group CEO Mr. Patrick Tumbo “This strategy will seek to leverage sales and distribution synergies between Sanlam General Insurance and Sanlam Life Insurance through improved customer experience, while sustainably growing revenue profitably for the good of all stakeholders.”

Sanlam Kenya is an insurance, investment and retirement group. The company offers a wide range of financial products and services in Insurance, Asset management and Real Estate. It does so through its subsidiaries Sanlam Life Insurance Limited, Sanlam Investments Limited, Sanlam General Insurance Limited and Sanlam Securities Limited.

 

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