Liberty Holdings feels market ire with first-half decline
LIFE insurer Liberty’s share price fell as much as 6.4% to R122.87 on Friday morning after reporting basic earnings per share fell 10% to R6.67 for the six months to end-June from the matching period’s R7.41.However, it raised its interim dividend 9% to R2.76.Liberty grew its interim revenue 4% to R19.5bn. Its aftertax profit, however, fell 6.8% to R1.99bn."While the weaker sales and earnings are below expectation, the group’s capital position remains strong," the company said in a statement on Friday.The drop in earnings was partly due to "two key changes" implemented by management in the reporting period. A "modeling change" caused a once-off R120m reduction to earnings in the reporting period. There was a further R22m earnings reduction to account for a "longevity improvement factor".Following new tax legislation introduced this year, Liberty transferred eligible risk policies to its new risk tax fund."This had a negative impact on earnings and value of new business through highe...
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