Sanlam Kenya has marked a major financial turnaround, posting a record Sh1.01 billion net profit for the year ending December 2024. This impressive performance comes after four consecutive years of losses, driven largely by a significant surge in investment income.
The company’s net profit reflects a stark recovery from the previous year’s net loss of Sh126.6 million and is Sanlam’s first profitable year since 2019, when it posted earnings of Sh1.14 billion. The remarkable profit was fueled by investment income, which rose fivefold to Sh5.27 billion from Sh1.06 billion the year before. This income was largely derived from State securities, fixed deposits, and property.
Sanlam Life, the subsidiary managing long-term insurance, played a crucial role in this turnaround. The firm saw net profit rise 2.6 times to Sh1.37 billion from Sh533.9 million in the previous year, as investment income skyrocketed to Sh4.72 billion.
Sanlam General, handling short-term insurance like motor, medical, and fire coverage, also posted strong results. Its net profit more than doubled, rising 2.7 times to Sh337.4 million.
In a statement, Sanlam attributed the impressive earnings to strong underwriting profit, bolstered by the surge in investment income. The company highlighted continued innovation in products and processes, digitalization efforts, and a customer-centric approach as key drivers of its financial performance.
Looking ahead, Sanlam Kenya plans to raise Sh5 billion from a shareholder loan facilitated by Stanbic Bank Kenya, aiming to strengthen liquidity and finance future growth initiatives. The move is expected to help Sanlam navigate tight economic conditions and deliver sustained value to shareholders.
