Sanlam posts Sh144 million full-year profit

Sanlam Kenya #ticker:PAFR has rebounded with a Sh114 million profit on increased income and lower expenses in the year to December, but has frozen dividends.

The Nairobi Securities Exchange-listed insurer said the group’s gross underwritten premium rose 10.25 percent to Sh6.99 billion while investment income grew 7.8 percent to reach Sh2.35 billion in the period.

“The improved performance reflects progress made by the group’s subsidiary,” said the insurer. The business retains a positive outlook for the year 2020.”

The company’s net claims and policyholder payments dropped by 5.66 percent to Sh4.83 billion in the period from Sh5.12 billion in the previous period as total income jumped by 50 percent to Sh8.89 billion.

The company board said the insurer will not pay dividends continuing a dividend drought for its shareholders. It did not pay dividends in the year ended December 2018.

“The board of directors will not be recommending the payment of dividends for the year ended 31 December 2019 at the forthcoming Annual General Meeting scheduled for Thursday 7 May 2020,” it said.

In the year to December 2018 which saw Sanlam post a Sh1.97 billion loss, 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.