Listed non-bank financial services provider, Sanlam Kenya on Friday withdrew its earlier posted profit warning notice ahead of its full year results release.
The Nairobi Securities Exchange (NSE) listed firm in regulatory filings and a Public Notice on Thursday in the local daily, has withdrawn the profit warning notice earlier issued on 29th December 2016 reflecting the prospect of posting good growth in its yet to be released full year results.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, John Simba and Group Chief Executive Officer, Mugo Kibati attributes the revised position to a reduction in the level of actuarial reserving for its life insurance businesses.
Speaking when he confirmed the new developments, 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 Profit Warning withdrawal, Kibati stressed 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provisions against some of our banking exposures has necessitated this withdrawal and the earlier profit warning is no longer valid.”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 further said, has stepped up the implementation of its robust five-year growth strategy.
The strategy 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 continues to enjoy pride of place as the single largest non-bank financial services provider with interests in life, general insurance and wealth management solutions among others.
In Kenya, the group is making steady progress with the implementation of its new five-year strategy.
Beyond the rebranding programme, the new strategy has also seen a significant transformation for the firm’s life and general insurance business distribution channels, as well as investment in capacity to support accelerated future growth.