Kenyan Insurer Sanlam Recovers from Loss to Post $6m

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Sanlam Kenya has posted Sh639 million ($6 million) in net earnings for the first half of 2019, coming from a Sh1.5 billion loss booked in the same period last year due to bad investment decisions.

The firm now says its treasury bond and equity portfolio swelled earnings from Sh41 million to Sh1.9 billion to prop insurance incomes which grew slightly from Sh2.4 billion to Sh2.7 billion.

Profits were also supported by lower claims at Sh1.9 billion, down from Sh2.4 billion.

“Investments on the other hand reported impressive market value gains on Sanlam’s equity and treasury bond portfolios raising the non-insurance incomes to Sh1.9 billion compared to Sh41 million over the same period last year,” Sanlam Kenya group chief executive officer Patrick Tumbo said.

Last year Sanlam took a beating when it wrote off bonds owed by Kaluworks (Sh169 million), Sh574 million by Athi River Mining (ARM) Cement, and Sh398 million by Real People Kenya. It had also extended money to troubled Nakumatt Supermarkets.

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