Liberty expects sharp first-half drop
Weaker investment markets put pressure on Stanlib’s margins, while operational write-offs affected earnings
Life insurer and asset manager Liberty Holdings expects normalised headline earnings per share (HEPS) to be 25%-35% lower for the six months to end-June compared with the year-earlier period, resulting in normalised HEPS of between 422.5c and 487.5c per ordinary share, the group said on Wednesday. Basic earnings per ordinary share and headline earnings per ordinary share are expected to be between 8% and 18% lower than the six months to end-June 2016. Liberty ascribed the weaker performance to the tough economic environment, resulting in a weaker mix of business from a margin perspective and lower value of new business in the group’s retail operations in SA. Weaker investment markets put pressure on Stanlib’s margins, while operational write-offs affected earnings. Liberty said the group remained well capitalised. The capital position of Liberty Group, the main long-term insurance licence, remained strong compared with its position on December 31 2016, despite the effect of the rece...
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