Sanlam Kenyas net profit sank 89 in H1 2025 as rising service expenses outweighed gains from investment income.
The insurer raised Ksh2.5 billion 19.36 million via rights issue, repaid debt, cut borrowings 72 but heavily diluted shareholders.
Investment income rose 34 to Ksh3.1 billion 24 million, but higher finance expenses and costs eroded much of the earnings cushion.
Sanlam Kenya Plc, a non-bank financial services provider backed by Kenyan investor Baloobhai Patel, reported lower earnings in the first half of 2025 as higher insurance service expenses and weak underwriting offset gains from investment income.
Profit falls on rising service expensesThe Nairobi Securities Exchange-listed arm of South African insurer Sanlam reported a net profit of Ksh30.9 million 239,242 for the first half of 2025, an 89 percent drop from Ksh282.2 million 2.19 million a year earlier. Earnings per share fell to Ksh0.1 0.001 from Ksh1.88 0.0146.
Insurance revenue increased 6 percent to Ksh3.7 billion 28.65 million, driven by higher premiums in life and general business. Service expenses rose to Ksh3.3 billion 25.55 million from Ksh3.16 billion 24.46 million, while net reinsurance costs climbed to Ksh418.2 million 3.24 million.
