Leading Kenyan insurer, Sanlam Kenya Plc, has informed its shareholders that there would be a noticeable decline in its unaudited 2020 net earnings after tax. This is according to a corporate action that was sent to the Nairobi Securities Exchange, as seen by Business Elites Africa.
In the regulatory filing which was signed by Board Chairman Dr John PN Simba, two reasons were given for the projected decline: the adverse effect of the COVID-19 pandemic on the Kenyan economy, and the adverse effect the exchange rate had on Sanlam’s net assets.
The statement further explained that Sanlam’s Board of directors had taken some measures to cushion the negative effects of the pandemic, including the adoption of cost saving measures, development of new products, and digitisation of the company’s business processes.
“In response to the challenging operating environment, the Board of Directors applied its focus on innovation and cost savings. The development of new products which we regard more suitable for our clients in the prevailing market conditions is ongoing, while digitization of the organizations key business processes is expected to improve company efficiencies and customer experience.
“The Board of Directors maintains a positive outlook on the business as the pandemic and its negative impacts are expected to dissipate while the Group’s initiatives continue to support the improvement of financial performance going forward,” part of the statement said.
Note that Sanlam Kenya Plc is an insurance, investment, and wealth management company which was established in October 1946. It was also the first Kenyan firm to list on the Kenyan Securities Exchange. Today, the company has multiple subsidiaries, including Pan Africa Life Assurance Limited which offers life insurance services and PA Securities Limited which serves as the investment arm of the group.