Sanlam Kenya Group Chief Executive Officer Patrick Tumbo said the period under review was challenging to all segments of the economy due to the coronavirus pandemic where this has been extended in 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. Corporate earnings were greatly affected in key segments of the economy, such as manufacturing, agriculture, transport, hospitality and financial services. said Tumbo.
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. Experts have revised the economic growth projections for the Country, pointing to a possible contraction in GDP by 1 percent in the current fiscal year with recovery only expected in 2021,” he added.
The NSE listed firm saw its Gross written premium in the first half of the year improve by 17percent compared to the previous year.
Short term insurance (Sanlam General) saw its performance up by 35 percent compared to the prior year to hit Sh73 million while long term insurance (Sanlam Life) registered a 10percent to record Sh229 million respectively.
At the same time, cash and cash equivalents improved from Sh1.67 billion to Sh1.75 billion in the current year while solvency in the insurance subsidiaries improved compared to the same period last year, with the long-term insurance business exceeding the prescribed limits.
Sanlam Kenya is poised to weather the challenging economic environment in 2020 and post better results in 2021 and the long term.