LIBERTY Holdings, South Africa’s third-largest insurer by market value, on Thursday posted an expected 39% hike in full-year earnings after a strong performance by its investment portfolio and its African operations.

The insurer – majority owned by Africa’s biggest lender, Standard Bank – said BEE normalised headline earnings per share came in at 1,328c from a restated 957c in the previous year.

Liberty flagged earlier this month that earnings would range between 1,245c and 1,390c, growth of 30%-45%.

BEE normalised headline earnings, which exclude certain one-time items and take into account the impact of its black economic empowerment (BEE) shareholder scheme, is Liberty’s main performance measure.

Liberty said its investment portfolio yielded a gross return of 16%. It raised its normal dividend by 10% to 528c and declared a special dividend of 130c.

Like other insurers in Africa, Liberty has struggled to grow its businesses on the continent outside South Africa, where insurance is more of a luxury than a necessity.

The company has operations in 15 African countries including lucrative markets such as Nigeria, Angola, Kenya and Uganda, where most of its new business is likely to come from.

The African insurance business had a three-fold increase in Liberty’s share of earnings to R69m, it said.

Standard Bank is due to report its earnings on March 7.

Liberty’s shares have risen more than 3% so far this year after a flat performance in 2012.

Source : abdas.org