Ian Kirk on how COVID-19 pandemic is impacting Sanlam

Sanlam, one of South Africa's leading insurance companies, is navigating through the challenges presented by the ongoing COVID-19 pandemic. CEO Ian Kirk recently spoke with CNBC Africa to discuss the company's reported annual earnings and the impact of the pandemic on its operations. Kirk highlighted the various ways in which the company is affected by the crisis. He emphasized how Sanlam's diversification across different insurance segments and regions is helping mitigate risks associated with the pandemic. While the company has substantial reserves for potential pandemics, Kirk noted that they have not experienced any significant mortality risks in their life insurance business so far. However, there are concerns about potential business interruptions, particularly in the travel insurance segment. Sanlam has reinsurance protection in place to manage elevated claims in various areas. Kirk also raised concerns about the impact of the pandemic on investment markets and economic growth, especially in South Africa, where growth is already anemic. Operational disruptions, such as travel restrictions, are also challenges that the company is facing. Despite these challenges, Kirk expressed confidence in the resilience of Sanlam's businesses and highlighted the double-digit growth in key segments like Sanlam Personal Finance and corporate insurance. He also pointed out the growth opportunities in Africa, where insurance penetration rates are lower than in South Africa. The company's strategy in Africa includes building on its strong market share and expanding its presence in high-growth markets. Kirk discussed the integration of recent acquisitions and the focus on organic growth in the region. Overall, while the COVID-19 pandemic presents uncertainties and challenges for Sanlam, the company remains focused on its strategic objectives and serving its clients in the best possible way.