Insurer Sanlam Kenya Plc has reported a KES30.9 million in net earnings for the half year period ending June 30, 2025, reflecting 89 percent decrease from the KES282 million which the company recorded during a similar period last year.

Sanlam Kenya saw its net expenses from reinsurance contracts increase by KES141.7 million to KES418.2 million in June 30, compared to KES276 million reported during similar half last year.

At the same time, the Nairobi Securities Exchange-listed company reported a KES168.9 million increase in insurance service expenses, which closed the six-month trading season at KES3.3 billion, from a lower KES3.16 billion recorded in June 2024. 

During the period, however, the company saw insurance revenue surge by 6.1 percent to KES3.7 billion, up from KES3.52 billion reported in June 2024.

According to Sanlam Kenya Group CEO, Dr Patrick Tumbo, the half-year results demonstrate a customer-centric business that is both resilient and well-positioned for sustained growth. 

During the half, Sanlam Life Insurance experienced a 220 percent solvency rate at the end of the period, while Sanlam General Insurance's solvency rate stood at 194 percent, indicating sound business operations.

“Our financial strength is underscored by a robust balance sheet, with total assets rising to KES 41.3 billion from KES39.2 billion at 31st December 2024, driven by strategic growth in financial assets and continued prudent management of capital,” he said.

He added, “The recent successful rights issue—raising issued share capital to KES2.7 billion—has significantly strengthened our capital base, enhanced solvency and enabled us to pursue growth opportunities with confidence. Shareholders’ funds more than doubled to KES3.85 Billion, reflecting improved retained earnings and investor confidence in our strategic direction.”

At the operations level, Sanlam Kenya continued to maintain strong insurance revenue growth, supported by disciplined underwriting and enhanced customer engagement.

“Our investment portfolio continues to deliver solid returns, with other investment revenue increasing by over 34 percent year-on-year to KES3.07billion, demonstrating the effectiveness of our diversified asset allocation strategy in delivering shareholder value,” Dr Tumbo said.

With a reinforced capital structure, a high-quality investment book, and a commitment to operational excellence, Sanlam Kenya, he said, is well placed to navigate the evolving economic environment. 

Our focus remains on sustainable profitability, deepening customer relationships, and leveraging innovation to unlock value for all stakeholders.

“We move into the second half of 2025 with optimism, anchored by strong fundamentals, an experienced leadership team, and a clear growth strategy that prioritises market leadership, customer trust, and long-term value creation,” he assured.

The firm’s cost and liability management, he said, remains a key strength, with borrowings reducing sharply from KES4.2 billion to KES1.19 billion, further improving our leverage position and creating headroom for future strategic investments.

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