Sanlam Allianz books Sh838m profit, flags pressure from volatile investment returns

NAIROBI, Kenya, Apr 22 – Sanlam Allianz Holdings has posted a 2.4 per cent increase in profit after tax for FY 2025, rising to Sh838.0 million year-on-year.

The insurer’s earnings per share (EPS) however plunged 69.9 per cent to Sh2.01, reflecting pressure from weaker investment returns and earnings dilution.

Insurance revenue declined by 3.2 per cent to Sh4.41 billion, while the insurance service result surged 45.7 per cent to Sh951.48 million, supported by stronger underwriting performance.

Investment returns fell 22.5 per cent to Sh3.66 billion, dragging overall earnings.

Profit before tax declined 7.7 per cent to Sh1.32 billion, while total comprehensive income dropped 21.1 per cent to Sh832.28 million.

“The Group delivered a resilient performance in 2025 despite a competitive operating environment, recording a profit before tax of Sh1.3 billion.”

“This outcome reflects disciplined underwriting, prudent expense management, and continued optimization of the Group’s reinsurance structures.”

Total assets rose marginally by 0.5 per cent to Sh39.37 billion, while capital and reserves more than doubled by 147.3 per cent to Sh4.75 billion, strengthening the balance sheet.

The life insurance business recorded a profit before tax of Sh1.4 billion and maintained a solvency ratio of 275 per cent, well above regulatory requirements.

The firm also completed the transfer of its general insurance portfolio to Sanlam Allianz General Insurance Limited, consolidating operations under the new structure.

The Board did not recommend a dividend payout for the year, citing earnings volatility and a focus on capital preservation.