Listed non-bank financial services provider, Sanlam Allianz Holdings (Kenya) Plc, has reported a 7.4 per cent drop in profit after tax to Sh124.6 million
Insurance revenue grew marginally by 1.1 per cent to Sh2.2 billion while the insurance service result fell to Sh241.3 million from Sh368.4 million as insurance service expenses increased to Sh1.87 billion.
Investment returns were a major drag on earnings, falling to Sh479.6 million from Sh2.87 billion a year earlier. The decline was partly driven by a sharp swing in other investment revenue, which fell to Sh863.9 million from Sh1.53 billion
Sanlam Allianz said gross written premiums increased by 32 per cent from a year earlier, while its balance sheet crossed the Sh40 billion mark for the first time
Speaking while confirming the half-year financials, Sanlam Allianz Holdings Kenya Group Chief Executive Officer Dr Nyamemba Patrick Tumbo said the firm had sustained ongoing business development efforts geared towards accelerating growth while reducing its operating costs.
“The business has seen a significant growth of 32 per cent in Gross Written Premiums (GWP) compared to the same period last year,” Sanlam Allianz Holdings Kenya Group Chief Executive Officer Dr Nyamemba Patrick Tumbo said.
“Most importantly, the business is fundamentally stronger and better capitalized than it was eighteen months ago, with our balance sheet surpassing Sh40 billion for the first time and our solvency ratio closing at 266 per cent, significantly above regulatory minimum requirements,” he said.
Sanlam Allianz Holdings Kenya plc expanded its retirement offering in February with the launch of the Sanlam Allianz Income Drawdown Fund, adding an income-drawdown option to its existing annuity business.
The company also expanded its savings products with the launch of Flexi Future Plus, targeting customers looking to build savings and generate income across different stages of life.
Dr Nyamemba expressed optimism for the rest of the year, saying the group would focus on growing revenue while keeping costs under control.
“Our focus for the rest of the year is to grow quality insurance revenue, hold the line on costs, and convert our new capital base into profitable growth,” said Dr Nyamemba Patrick Tumbo.
