Sanlam Kenya has announced withdrawal of an earlier profit warning. (Photo: Courtesy)
Nairobi Securities Exchange (NSE)-listed financial services provider, Sanlam Kenya has announced the withdrawal of an earlier profit warning notice ahead of its full year results release.
The firm in regulatory filings and a Public Notice dated February 9, 2017, has withdrawn the Profit Warning Notice it issued on December 29, 2016 reflecting the prospect of posting good growth in its yet to be released full year results.
The withdrawal notice, jointly signed by Sanlam Kenya chairman, Dr John Simba and Group Chief Executive Officer, Mr Mugo Kibati attributes the revised position to a reduction in the level of actuarial reserving for its life insurance businesses.
Kibati said the profit withdrawal notice had also been necessitated by a reduction in the level of impairment provisions; earlier considered for some of the firm’s investments in banking entities. The withdrawal of the profit warning, Kibati said was not based on a change of accounting system or method and had been done with the approval of the Capital Markets Authority.
“The withdrawal has been undertaken based on engagements with the relevant regulatory agencies as part of our corporate governance policies,” Kibati said, adding that, “a review on our life business liabilities and impairment provisions against some of our banking exposures has necessitated this withdrawal and the earlier profit warning is no longer valid.”
The company, he added, has stepped up the implementation of its five-year growth strategy which last year was headlined by a strategic rebranding process with all the former Pan Africa Insurance Holdings subsidiaries adopting a single identity under the Sanlam brand.
In Africa, the Sanlam Group is the largest non-bank financial services provider with interests in life, general insurance and wealth management solutions.