Financial services firm, Sanlam Kenya has confirmed the viability of its ongoing turnaround strategy after bouncing back to profitability following heavy losses in 2018.
The firm, which is listed on the Nairobi Securities Exchange (NSE), has returned a Ksh639.7 million (about $6.18 million) after-tax profit for the six-month period ending June 2019, a complete turnaround from last year’s Ksh1.5 billion (about $15 million) after-tax loss.
Speaking when he announced the firm’s half-year earnings for 2019, Sanlam Kenya Group Chief Executive Officer Patrick Tumbo explained that deliberate efforts to re-orient the Group’s business growth strategy were beginning to pay off.
“At Sanlam Kenya, we have been focusing on the growth of our core insurance business through strategic partnerships, human capital investment, revamped distribution strategy and other sales and marketing initiative,” said Tumbo.
“This focus has seen us enjoy a growth in core insurance revenues by 17% to Ksh3.65 billion (about $36 million) up from Ksh3.11 billion (about $30 million) reported over the same period last year, despite an increasingly competitive market environment,” he added.
The growth, he added, was also attributed to improved investment performance and the positive impact of a revision in the statutory interest rate risk margin.
While crediting the firm’s accelerated growth to the support and dedication of its staff, sales agency network, intermediaries and other strategic partners, Tumbo said Sanlam Kenya remains focused on providing an excellent customer experience.
Tumbo said that efforts to recover the Group’s impaired assets amounting to more than Ksh2.2 billion (roughly $22 million) from institutions under financial distress are still ongoing and remain a top priority for the business this year.