Liberty benefits from market recovery


Liberty benefits from market recovery

Published Date: 2019-07-19 | Source: Stephen Gunnion | Author: Stephen Gunnion

Liberty benefits from market recovery

The life assurer expects a strong rise in first-half earnings due to stronger equity markets and a continued turnaround of its business.

Liberty Holdings has primed investors for a big rise in first-half earnings due to higher market returns and an improved operating performance.

In a trading statement, the life assurer and asset manager said it expected to report a rise of between 45% and 55% in normalised headline earnings per share (EPS) for the six months to end-June. It said normalised earnings reflected the economic reality of the consolidation of listed real estate investment trust (REIT) Liberty Two Degrees and the group's black economic empowerment deal. It said this differed from their accounting treatment under International Financial Reporting Standards. Headline EPS are expected to rise by between 25% and 35%, while basic EPS are likely to rise by 18% to 28%.

The group said its shareholder investment portfolio benefitted from stronger equity markets during the period. The portfolio is similar to a conservative balanced portfolio and is managed with a long term investment horizon.

The company took remedial action last year to improve the value of new business coming onto its books, stem outflows and improve its financial performance.

Its shares rose 2.9% to R111.95 yesterday.

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