Sanlam Kenya on Friday reported a full-year pretax profit of 550 million shillings ($5.44 million), swinging from a loss of 2.1 billion shillings in the prior period, the insurance company said.
Sanlam Kenya, part of South African insurer Sanlam Group, attributed the return to profit to a 50% growth in revenue from gross premiums and investments. Its life insurance business also returned to profit during the year.
Patrick Tumbo, Sanlam Kenya’s CEO, said the company expected further improvement this year, citing a drive to cut costs and boost revenue including through alliances with unspecified partners.
Its life insurance business made a profit of 964 million shillings, versus a loss of 853 million shillings in 2018.
Sanlam’s life business is ranked seventh largest in Kenya, out of a total of 25 insurers, while its general insurance business is ranked number 18 out of 37 companies, data from the insurance regulator showed.
Kenya, like many other African countries, has a very low insurance penetration rate, estimated at below 10% of the population. The figures have attracted international firms like Prudential and Swiss Re, which have entered the market in recent years.