Nairobi Securities Exchange listed insurer Sanlam Kenya has issued a profit warning for the full year 2016.
The insurer said that it expects its profits to drop by at least 25 per cent, citing lower income from sale of properties and increased cost associated with the implementation of a new strategy for growth.
“Implementation of the group strategy commenced in 2016 with realisation of the benefits expected to start in 2017 with a marked improvement in overall growth and profitability,” the company noted in its announcement.
In the first six months of its current financial year, Sanlam Kenya posted a net profit of Sh. 129 million from the net profit of Sh. 284 million it posted in the first six months of the 2015 financial year.