Liberty says 2015 profit hit by NSE sell-off

Friday January 29 2016

Liberty shareholders at a past investor

Liberty shareholders at a past investor briefing. PHOTO | COMPANY FILINGS 

By BRIAN NGUGI
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Listed insurer and wealth management firm Liberty Kenya Holdings Limited Friday said its 2015 profit would be at least 25 per cent lower than the previous year.

Liberty said its earnings in equities business have been hit by the bear run on Nairobi Securities Exchange in 2015.

Liberty Kenya Holdings which is the parent company of Liberty Life Assurance Kenya Limited and Heritage Insurance Company Kenya Limited posted a Sh1.15 billion profit after tax for the year 2014, a 3.9 per cent increase as compared to Sh1.1 billion for 2013.

“The board of directors of Liberty Holdings wishes to announce that the company’s earnings for the year ended 31 December 2015 are expected to be at least 25 per cent lower than then earnings reported for the same period in 2014,” Liberty Holdings chairman Susan Mboya Kidero and company managing director Mike du Toit said Friday in a joint profit warning announcement.

Core business

They explained that while the core business operations of Liberty Holdings experienced sound growth in the year, there was a general decline in the values of listed equities and fixed income securities in the markets which the group operates.

“As a result, there was a decline in asset values which negatively impacted the investment income when compared to the previous year,” they said.

Liberty holdings has two operating segments: Long term business and general insurance business.

The company's long term business segment includes insurance business of all classes, namely, life assurance business, superannuation business, industrial life assurance business, and bond investment business and business incidental to any such class of business.

The company's general insurance business segment includes aviation insurance, engineering insurance, fire insurance - domestic risks, fire insurance - industrial and commercial risks, liability insurance, marine insurance and personal accident insurance, among others.

The company also issues investment contracts to provide customers with asset management solutions for their savings and retirement needs. The latest profit warning issue by Liberty Holdings makes it the 17th Nairobi Securities Exchange, (NSE) listed company that expects its full year 2015 profits to fall by at least 25 per cent.