SanlamAllianz Holdings Kenya recorded a KSh 124.6 million net profit in the first half of 2026, extending its return to profitability while gross written premiums increased 32% year-on-year. The insurer’s latest half-year performance also saw total assets exceed KSh 40 billion for the first time and its solvency ratio close at 266%.
The headline profit was more than four times the roughly KSh 31 million reported a year earlier, but the comparison was significantly influenced by a KSh 103.7 million loss from discontinued operations in H1 2025. On a continuing-operations basis, profit fell 7.4%, highlighting weaker underlying insurance and investment performance despite the stronger balance sheet.
Key Overview
- Net profit reached KSh 124.6 million, compared with about KSh 31 million in H1 2025.
- Gross written premiums increased 32% year-on-year.
- Total assets increased to KSh 40.31 billion, crossing KSh 40 billion for the first time.
- The solvency ratio closed at 266%, remaining comfortably above regulatory requirements.
- Insurance service result declined 34.5% to KSh 241.3 million.
- Investment return dropped 83.3% to KSh 479.6 million.
- Profit before tax declined 28.1% to KSh 201 million.
Headline Profit Masks Pressure on Core Earnings
SanlamAllianz’s H1 profit represents another milestone in a turnaround that followed four consecutive first-half losses between 2020 and 2023. However, the detailed earnings figures show that the improvement in reported net profit does not translate into equivalent growth in the underlying business.
Profit from continuing operations declined 7.4% to KSh 124.6 million, while profit before tax fell 28.1% from KSh 279.7 million to KSh 201 million.
Insurance revenue increased only modestly, rising about 1.1% from KSh 2.17 billion to KSh 2.20 billion. Insurance service expenses, however, grew faster at 9.2% to approximately KSh 1.87 billion. The resulting insurance service profit dropped from KSh 368.4 million to KSh 241.3 million.
Investment performance created another major drag. Investment returns fell 83.3% to KSh 479.6 million from KSh 2.87 billion a year earlier, while the net financial result deteriorated to a KSh 147.5 million loss.
The fourfold increase in headline net profit therefore partly reflects the absence of the discontinued-operations loss recorded in the comparable 2025 period rather than a similar acceleration in operating profitability.
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Capital Restructuring Strengthens the Balance Sheet
Where SanlamAllianz has made clearer progress is on its financial position. Total assets increased from KSh 39.37 billion at the end of 2025 to KSh 40.31 billion by June 2026, while shareholders’ funds stood at approximately KSh 4.75 billion.
Borrowings have also fallen significantly from KSh 4.37 billion in June 2024 to about KSh 1.44 billion. That deleveraging helped finance costs fall roughly 90% year-on-year to KSh 18.1 million from KSh 180.9 million.
The improvement follows a broader balance-sheet restructuring that included a KSh 2.5 billion rights issue completed in 2025. Proceeds helped retire debt and strengthened shareholders’ funds, giving the group considerably more capital flexibility than during its loss-making years.
Management said the business is now better capitalised than it was 18 months ago, with the 266% solvency ratio providing a substantial buffer as the company pursues further growth.
Premium Growth Becomes the Next Profitability Test
Gross written premium growth of 32% provides one of the strongest positive signals from the half-year results. The challenge is now converting that premium expansion into stronger insurance service earnings while preventing claims, operating expenses and other costs from rising faster than revenue.
For the remainder of 2026, management has identified growing quality insurance revenue, maintaining cost discipline and extracting profitable growth from the group’s larger capital base as key priorities.
The company is simultaneously widening its savings and retirement offering. It launched an Income Drawdown Fund in February 2026, providing retirees with another mechanism for drawing income from accumulated savings, and has expanded its savings range through Flexi Future Plus.
SanlamAllianz therefore enters the second half with a substantially stronger capital position and faster premium growth, but its H1 figures show that rebuilding the balance sheet was only one stage of the turnaround. The next measure of progress will be whether premium growth can translate into stronger underwriting margins and sustainable earnings while dependence on volatile investment returns is reduced.
Sources: Kenyan Wall Street / Khusoko / Tuko
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